Context:
- India’s ambition to become a developed nation by 2047 hinges not only on socio-economic progress but also on building strong strategic capabilities.
- A key weakness has been its defence industrial base, long hampered by restrictive policies that excluded domestic private industry while relying heavily on foreign private imports, creating structural economic and security vulnerabilities.
- This article highlights how building a strong defence industrial base is central to India’s ambition of becoming a developed nation by 2047, linking strategic autonomy, economic resilience, export potential, and global influence through sustained defence-sector reforms.
A Strategic Turn in India’s Defence Manufacturing
- India’s defence sector has undergone a major transformation with the entry of private industry, liberalised FDI norms, corporatisation of the Ordnance Factory Board, expansion of the ‘Make’ procurement route, and active promotion of innovation.
- These reforms have boosted defence production and exports, now reaching over 80 countries.
- The combined impact of reforms signals a maturing ecosystem capable of meeting domestic defence needs while integrating into global supply chains, reducing dependence on imports and strengthening industrial capacity.
- Geopolitics and the Case for Self-Reliance
- Ongoing conflicts in Europe, West Asia and Asia have highlighted supply-chain vulnerabilities, underscoring the importance of strong domestic defence industries.
- For India, facing border and maritime challenges, defence self-reliance is essential for resilience and security.
- Emerging Global Opportunities
- Rising defence spending in Europe, saturation of traditional suppliers, and demand for affordable, reliable platforms create new export opportunities.
- India’s strategic location in the Indian Ocean Region and growing diplomatic influence position it as a credible global defence supplier.
Unlocking India’s Defence Export Potential
- Need to Simplify Procedures
- Realising India’s defence export ambitions requires sustained reform.
- Regulatory complexity continues to impede private-sector participation, particularly for MSMEs and startups.
- Faster approvals for export licensing, joint ventures and technology transfers are essential.
- Policy Certainty and Investment Confidence
- Clear, long-term demand projections are necessary to give industry confidence for large investments.
- Achieving the target of ₹50,000 crore in defence exports by 2029 depends on simplified procedures and consistent policy continuity.
- Redefining DRDO’s Role
- While the DRDO has been central to building strategic capabilities, its future role should prioritise frontier research.
- Production, scaling and commercialisation should increasingly be led by public and private industry, in line with global best practices.
- Dedicated Export Facilitation Mechanism
- Establishing a professionally staffed, single-window defence export facilitation agency would streamline global outreach, reduce inter-ministerial coordination gaps, and enhance India’s competitiveness in international defence markets.
Strengthening India’s Defence Industrial Base: The Way Forward
- Reforming Finance, Testing and Certification
- India must overhaul financial, testing and certification frameworks that currently constrain defence manufacturers.
- Access to competitive credit, faster trials, integrated testing facilities and adoption of international certification standards are crucial to improving export competitiveness.
- Enhancing Export Support Mechanisms
- Specialised export financing instruments, proactive use of lines of credit, government-to-government agreements, and long-term service and maintenance commitments can significantly strengthen India’s credibility in global defence markets dominated by established suppliers.
- Strategic and Economic Significance of Defence Exports
- Defence exports go beyond commerce; they reflect technological maturity, strategic reliability and international trust.
- A strong defence industrial base reduces import dependence, creates high-skilled jobs, and enhances India’s geopolitical leverage.
- Sustaining Momentum for Global Leadership
- While recent progress is encouraging, sustained and consistent reforms are essential to deepen innovation and attract investment.
- Building a robust defence ecosystem is a defining step toward India’s emergence as a confident, capable and influential global power.
