Sansad TV Perspective: India’s Defence Prowess

In the series Sansad TV Perspective, we bring you an analysis of the discussion featured on the insightful programme ‘Perspective’ on Sansad TV, on various important topics affecting India and also the world. This analysis will help you immensely for the IAS exam, especially the mains exam, where a well-rounded understanding of topics is a prerequisite for writing answers that fetch good marks.

In this article, we feature the discussion on the topic: India’s Defence Prowess.

Anchor: Teena Jha

Guests:

1. Lt Gen VK Saxena  (Retd.), Former Director General, Corps of Army Air Defence
2. Air Vice Marshal PK Srivastava, (Retd), Defence Expert  
3. Pavitra Goel, Head, Marketing & Strategy, Lohia Aerospace & Defence

Context – India is becoming one of the leading exporters of military hardware globally. Defence exports have increased manifold in the last 8-9 years, crossing 1.5 billion dollars and the GoI aims to increase the export of military hardware to 5 billion dollars by 2024-25. 

Aero India 2023 – Significance

The Prime Minister, Shri Narendra Modi inaugurated Asia’s largest Air Show – Aero India 2023 on February 13, 2023. In line with the Prime Minister’s vision of ‘Make in India, Make for the World’, the 14th edition of Aero India focuses on displaying indigenous equipment/technologies and forging partnerships with foreign countries. The Prime Minister described Aero India as an example of India’s growing potential, saying it is not only a show, but also a reflection of India’s self-confidence and capabilities.

• Aero India is a biennial international military and civil air show. The Yelahanka Air Base, Bengaluru has been hosting the air show since it started in 1996. 
• In the 14th edition of Aero India, more than 80 countries along with defence companies including 100 foreign and 700 Indian companies participated. The Indian companies include MSMEs and startups. Such huge participation bears testimony to the capabilities of New India.
• The event has assumed much significance over the years. In 1996 the event used to be a visual delight, then a business delight for the foreign manufacturers who wanted to sell their aerospace assets in the country and now it has turned into a delight for the manufacturers of our country. 
• Aero India, 2023 showcases India as an emerging hub for defence manufacturing. The five-day event on the theme ‘The runaway to a billion opportunities’  reflects the rise of a strong and self-reliant New India by displaying India’s growth in aerospace and defence. The event  contributes immensely to the development of the aerospace and aviation sector of the country.
• Earlier, India used to be the largest defence importer and now it has started exporting defence equipment to 75 countries in the world. India aims to take defence exports from 1.5 billion to 5 billion by 2024 – 25. With this potential in the defence sector, the world is gravitating towards India.

Atmanirbhar Bharat – Indigenisation of Technology 

The GoI has taken several initiatives to bring reforms to promote indigenous design, development and manufacture of defence equipment. Some of the important ones are – 

• The Defence Acquisition Procedure (2020) is an undertaking by the Ministry of Defence to sustainably evolve indigenous defence manufacturing capacity, and make transactions within the sector smoother and more equitable. It came into force on October 1st, 2020 – replacing its predecessor, the Defence Procurement Procedure (2016).
• Launch of Mission DefSpace.
• Announcement of 18 major defence platforms for industry-led design & development in March 2022. 
• Liberalisation of Foreign Direct Investment (FDI) policy allowing 74% FDI under automatic route.
• Launch of Innovations for Defence Excellence (iDEX) scheme involving start-ups & Micro, Small and Medium Enterprises (MSMEs).
  • iDEX is aimed at the creation of an ecosystem to foster innovation and technology development in Defence and Aerospace by engaging industries including MSMEs, Start-ups, Individual Innovators, R&D institutes and Academia and provide them grants/funding and support to carry out R&D which has the potential for future adoption for Indian defence and aerospace needs.
• Establishment of two Defence Industrial Corridors, one each in Uttar Pradesh and Tamil Nadu.
• The Ministry of Defence has formulated a draft Defence Production and Export Promotion Policy 2020 (DPEPP 2020). The DPEPP 2020 is envisaged as an overarching guiding document to provide a focused, structured and significant thrust to the defence production capabilities of the country for self-reliance and exports.
  • Its objective is to achieve a turnover of Rs 1,75,000 cr including export of Rs 35,000 cr in aerospace and defence goods and services by 2025.
• Launch of an indigenization portal namely SRIJAN to facilitate indigenisation by Indian Industry including MSMEs.
• A record 75 per cent (about Rs 1 lakh crore) of the defence capital procurement budget has been earmarked for the domestic industry in FY 2023-24, up from 68 per cent in 2022-23. This was announced by Defence Minister,  Shri Rajnath Singh during the Bandhan ceremony of 14th Aero India, Bengaluru. This will minimise the dependency on imports. This step will not only strengthen the security system of the country but will also boost the economy. 

Forging Partnerships 

The event also aimed at forging and renewing partnerships between business entities for innovative collaboration and strategic transformation of the defence manufacturing sector in the country. The Bandhan ceremony witnessed the forging of 266 partnerships including some worth around Rs 80,000 crore.

• The major MoUs signed between Indian and foreign firms included those between Hindustan Aeronautics Limited and Safran Helicopter Engines, France for Work Share for formation of Joint venture for Design, Development, Manufacture and lifetime support of Helicopter Engines. BEL also signed an MoU with Aeronautical Development Agency on IWBC and Other LRUs for Advanced Medium Combat Aircraft (AMCA).

• The MoUs and ToTs (Transfer of Technologies) will pave the way for enhanced FDI in defence and taking the manufacturing in the sector to greater heights.

Opportunities for MSMEs 

MSMEs can network with leading aerospace companies, suppliers and defence agencies from India and abroad. In the 14th edition of Aero India, about 700 Indian companies participated which include MSMEs and startups. Aero India provides a platform to connect MSMEs with the global supply chain. 

• Contract Opportunities: MSMEs can participate in defence procurement programs and supply chain opportunities for aerospace and defence equipment.
• Market Awareness: MSMEs can showcase their products and services to a large audience, increase market visibility, and gain aerospace and defence industry recognition.

Conclusion

The Aerospace and Defence sector in India is at an inflection point, given the modernisation and indigenisation programmes being undertaken by all the three services of one of the largest military forces in the world. The Ministry of Defence in India has laid out an expansive plan for modernisation of obsolete equipment through long-term perspective plans, capability plans, capability roadmaps and capital acquisition plans. 

Read all the previous Sansad TV Perspective articles in the link.

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