Category: Policy

The article highlights the global military industrial bases (MIBs) of major countries like the U.S., Europe, Russia, China, and India, emphasizing the need for self-reliance in defense production. While the U.S. and Europe lead with advanced defense contractors and collaboration, Russia and China focus on state-controlled systems. India is making strides toward indigenization through initiatives like Atmanirbhar Bharat, boosting R&D, and encouraging private sector participation. To further strengthen its MIB, India must increase R&D investment, streamline procurement, leverage MSMEs, and expand global collaborations to enhance its defense export potential and strategic influence.

The article highlights the untapped potential of India’s MSMEs in the Aerospace and Defence (A&D) sector, emphasizing the challenges MSMEs face in connecting with Original Equipment Manufacturers (OEMs). Current processes, including reliance on third-party inspections, create barriers that hinder MSMEs from integrating into OEM supply chains. A proposed solution is implementing a peer review and rating system to streamline vendor selection and facilitate direct engagement between OEMs and MSMEs. By simplifying processes and removing barriers, India can unlock the full potential of its MSMEs, advancing self-reliance and global competitiveness in manufacturing.

The Indian Defence Acquisition Council, chaired by the Raksha Mantri, approved capital acquisitions worth nearly Rs One Lakh Crores, focusing on indigenisation and modernisation of the Armed Forces. This includes sophisticated platforms and emphasizes support for indigenous defence startups and MSMEs through simplified acquisition procedures. The initiative reflects a strategic shift towards making India a defence exporter and reducing its reliance on imports, demonstrated by significant deals like the BrahMos missile export. The adjustments in procurement policies, including emergency powers and the Fast-Track Procedure, aim to address immediate needs while fostering long-term self-reliance and capability enhancement in the defence sector.

The article highlights India’s need for self-reliance in defense due to its adversarial neighbors, the importance of indigenization in the defense sector, and the challenges posed by changing geopolitics, particularly Russia’s growing ties with China. India has taken measures to promote indigenization, including import bans, and is focusing on developing modern defense equipment through R&D, technology transfer, and joint ventures. The article emphasizes the need for diplomatic efforts to provide a decade of stability before major defense indigenization, considering the evolving global conflicts.