Editorial: Push for self-reliance

Indigenisation is critical but acquisition of modern weapons through imports must not be ignored

Self-reliance in the defence sector is a lofty goal but excessive dependence on public sector companies to meet the objectives of indigenisation could become a stumbling block. There is a need to strike a balance between promoting ‘Atmanirbharta’ in defence production and the requirements of the armed forces to ensure preparedness as the country faces a two-front threat from Pakistan and China. There is no doubt that indigenisation is an important way to bridge critical gaps in defence capability, the drive, however, should not mean ignoring the need for acquisition of modern weapons through imports. The defence ministry’s approval of a fresh list of 928 components and subsystems, to be procured exclusively from the domestic industry, will certainly help the cause of indigenisation but the involvement of the private sector will further speed up production. This is the fourth such ‘positive indigenisation list (PIL)’ comprising line replacement units, sub-systems and components used for various military platforms, equipment and weapons. India’s indigenisation drive has been largely dependent on the DRDO (Defence Research and Development Organisation) and the DPSUs (Defence Public Sector Undertakings) to deliver on the promise. However, many of the DRDO’s projects have been delayed. The armed forces, which are projected to spend around $130 billion in capital procurement over the next five years, have also raised the issue of product quality. Their needs are urgent, hence they often take recourse to imports rather than wait for DRDO projects to fructify. The DRDO’s problems range from inadequate manpower in critical areas to the lack of proper synergy with the armed forces.

To compete with global defence R&D organisations, the DRDO has to have much larger budgets, trained manpower and more freedom in its operations. The best way forward is to encourage more private sector companies to participate in defence production, especially in the medium and high-tech regimes, to boost indigenisation in the sector. Premier institutes such as IITs and even private universities need to be incentivised to get into the defence sector to run academic courses. The government needs to provide tax incentives to defence manufacturers. Given the prevalent institutional limitations in manpower induction and cutting-edge technology, defence budgetary allocations are bound to run short for a nation the size of India. Innovative methods have to be found to augment the resources. The import of high-tech platforms, equipment and even ammunition shows that India still has a long way to go before it becomes self-reliant in critical defence technologies. The private sector is still not in a position to meet the needs of the armed forces largely because it has been deliberately kept out of defence production. Often, the procedures are cumbersome and stacked against the private sector. There is a need to encourage startups, especially relating to cutting-edge technology products such as drones used in warfare.

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