Moving towards Atmanirbhar Bharat in defence manufacturing Sainya Sandesh Mar 2021

Moving towards Atmanirbhar Bharat in defence manufacturing Sainya Sandesh Mar 2021

Moving towards Atmanirbhar Bharat in defence manufacturing Sainya Sandesh Mar 2021

          India has traditionally been amongst the largest importer of defence weapons. As per data, India in 2020, had the world’s third largest defence budget, after the US and China, and was the second largest importer of defence armaments, catering to 9.2% of global weapon imports. This, despite the fact, that India possessed a Defence Research and Development Organization (DRDO) comprising of 50 laboratories, four defence shipyards, five defence Public Sector Undertakings (PSUs) and an Ordnance Factory Board (OFB) which controlled 41 ordnance factories manufacturing mainly products for the armed forces.

          Data also stated that India manufactured 45-50% of its defence products, mainly low key, while importing the rest. It was only recently that the private sector was permitted into defence research, development and production. India’s defence exports were Rs 4,682 crore (US$0.66 billion) in 2017–2018 and Rs 10,500 crore (US$1.47 billion) in 2018–2019. 

          Banking on imports for defence modernization can lead to pitfalls. The breaking up of the Soviet Union led to shortfalls in spares for Russian equipment as manufacturing units in some cases were located in other countries, including Ukraine. In Jun 2020, Belgian small arms manufacturer FNH cancelled a contract to supply 1,500 small arms to the Special Frontier Force, leading to gaps in its modernization. The German small arms manufacturer, Heckler & Koch, does not participate in Indian contracts claiming government restrictions do not permit export to India. It is also possible that some foreign manufacturers may stop supplies of spares at critical junctures citing multiple concerns.

          The other factor is that imports, apart from being costly, lead to dependency on foreign governments and firms for supply of spares and replacements. It results in maintaining large stocks of reserves to cater for breaks in supply at crucial junctures. This becomes a drain on the defence budget. Vivek Krishnan, CEO of SSS defence stated, ‘Aatmanirbhar Bharat should not just be about buying an Indian weapon, it should be about future-proofing the army to ensure that they don’t look anywhere else for the next 50 years. That can only happen by investing in Indian industry.’ It is this that the current government is pushing.

          Aatmanirbhar Bharat has begun gaining steam in the past couple of years, more since the pandemic led to an economic slowdown. The armed forces have been backing the domestic industry for some time. PM Modi, addressing the Aatmanirbhar Bharat Defence Industry Outreach Webinar in Aug 2020, stated, ‘For many years, India has been one of the biggest defence importers. When India got independence, it had great capability in defence manufacturing and an ecosystem of defence manufacturing established over 100 years. Unfortunately, this subject couldn’t get requisite attention.’

Defence Minister Rajnath Singh stated during the Lucknow Defence Expo in Feb 2020, ‘We want to make India a defence manufacturing hub. During the Expo in Lucknow, all service chiefs and the CDS devoted most time in domestic pavilions, rather than those from abroad.

          As the Vice Chief of the Army, General Naravane stated in a FICCI seminar, in Oct 2019, ‘If we don’t invest in R&D, we will always depend on imports… In the ‘Make’ process, we will do all the hand holding. We will not ask you unreasonable demands.’ General Bipin Rawat had stated in a seminar on promoting self-reliance in defence in Aug 2020, ‘Nothing will give us greater satisfaction than fighting and coming out victorious in wars with indigenous technology and equipment.’ He added, ‘I would like to reiterate our unequivocal assurance of our commitment to procuring indigenous equipment and weapon systems.’ 

The current air chief, Air Chief Marshall RKS Bhadauria stated in an interview during the Aero India 2021, ‘When you look at the long-term picture, indigenisation is the most important aspect we need to concentrate on. If we have to be a strong military power, it has to be on indigenous defence capability. And that is our focus.’ Speaking to Aviation and Defence, just prior to the Navy day in Dec 2020, the Navy Chief, Admiral Karambir Singh stated, “Self-Reliance and Indigenisation have been foundational aspects in our force development plans over the last several decades. We have been able to transform ourselves from a ‘Buyer’s Navy’ to a ‘Builder’s Navy’.”

There is no doubt that aatmanirbhar Bharat has national support. The industry too has grown over the years.

The Indian success story of missiles is well established. The array of AGNI and Prithvi missiles, already inducted into service, has been a game changer for Indian security forces. These missiles, with both conventional and nuclear warheads, have enhanced India’s ability to counter enemy threats. Converting them into a triad of delivery means has added to concerns of adversaries. The development of BrahMos in collaboration with Russia is another global success story. Till date no country has been able to develop an anti-dote to destroy the surface skimming BrahMos cruise missile. The global demand for BrahMos missiles, from West Asian nations to ASEAN nations, indicates its success.

India had decades ago developed its own artillery guns which were the 75/24 Howitzer and the 105 mm field gun. It now possesses a range of 155 mm guns either under production or trials, Dhanush and Advanced Towed Artillery Gun System (ATAGS) are the best known. The SOLTAM project, which was converting the Russian 130mm to 155mm is also well underway. Kalyani had developed its own 155 MM Gun system, which was displayed during the Defence Expo 2020. The Saudi’s envisaged keen interest in the same. The indigenous development of the AKASH air defence systems, now in global demand, is well established. Similar has been the case with the Pinaka multi-barrel rocket launcher and the weapon locating Swathi Radars.     

The signing of the Rs 48,000 crore deal for procurement of 83 indigenously developed Light Combat Aircraft (LCA) Tejas for the Indian Air Force was a game changer for the domestic defence industry. Mahadevan, the Chairman and Managing Director of HAL stated that the deal, ‘has created a national aerospace ecosystem with the participation of approximately 560 companies from large to SMEs.’ He added, ‘Till date the Tejas programme is estimated to have produced 50,000 primary and secondary jobs across the nation.’ It has also generated vast global interest for the aircraft as Indian testing standards are well established. To push in public partnership into a successful enterprise, the government announced that HAL would sell 15% of its shares to the public.

In mid Feb, the PM, during a visit to Chennai also dedicated the latest version of the Arjun Tank to the nation. The army has ordered 118 Arjun tanks which would cost around Rs 8,400 crore and would equip two armoured regiments. 124 Arjun tanks, of the previous version, have already been inducted into the army.

A report of 09 Feb stated that India has developed its own protective clothing for nuclear, biological and chemical (NBC) warfare, joining an elite club of just three other nations. This development took 33 years from idea to execution. India will no longer depend upon US and German equipment. Five types of NBC protective systems and equipment for troops have been developed inhouse including, individual, collective, medical, detection and decontamination equipment and systems.

The armed forces have also begun investing in indigenous Drones. Ideaforge, an Indian start up in Mumbai, after beating Israeli and few Indian drone manufacturers was given the contract to build and supply the army with advanced tactical drones. The contract was worth Rs 130 Crores. The HAL unveiled its Combat Air Teaming System which includes a variety of drones during the recently concluded Aero India at Bengaluru.

The confidence of the domestic defence industry has been growing steadily. India has announced a list of over 152 items which it is willing to export to friendly nations. The list includes 85 kinds of equipment and 45 sub-systems. Amongst those considered are the BrahMos supersonic cruise missiles, the ATAGS, Pinaka multi-barrel rocket launchers, and Combat Management Systems.

However, in crucial technology areas there are still gaps. The TEJAS may be an Indian designed aircraft, however it still employs a US engine and an Israeli radar. Its indigenous content is approximately 60% in value and 76% in numbers. Similar is the case with naval vessels and their armaments. The DRDO, despite all its efforts has failed to produce the basic small arms required by the forces, compelling these to be imported. The offset policy adopted by the government was never exploited to bring latest technology into the country. This is currently being rectified.

India is learning and changing. The fact that the armed forces and the government are backing domestic industry, opening multiple channels for their products, there is bound to be a growth in their quality and an enhanced share in weapon systems being employed by Indian forces.

However, there is a need for a coordinated push to enhance productivity and quality in domestic production. The 41 ordnance factories under the OFB are white elephants eating into the defence budget without giving desired results. They must either change their work ethos and culture or be corporatized or sold. They must be made self-sustaining. The nation can no longer support white elephants from the taxpayer’s contributions.

In addition, the DRDO needs to re-establish its role. It must concentrate on research in cliché technologies and not mundane. It does not require 50 laboratories for the same. Serving officers must pilot service-related R and D projects, ensuring that they meet laid down criteria and are not wasted or dumped at a later stage. Similarly, they must head Defence Public Sector Undertakings and ordnance factories as these cater for defence needs.

  Aatmanirbhar Bharat has changed the complexion of the domestic defence industry. What was unimaginable a few years ago is a reality today. The combined participation of the government and private sector is ensuring that major defence requirements are being met locally. India is moving from being a net importer to a net exporter of defence products. This momentum must continue, and domestic industry supported by every means.