Defence Indigenisation

Recently, Defence Minister has released the fifth Positive Indigenisation List (PIL) of 98 items. The list outlines items that will be procured by the three-armed services from indigenous suppliers.
Items on the list include a futuristic infantry combat vehicle, unmanned aerial vehicles, precision kill systems, radars, and more.
The Department of Military Affairs prepared the list after consultations with stakeholders.

At the Swavlamban 2.0 seminar of the Naval Innovation and Indigenisation Organisation (NIIO), 76 challenges were launched for industry players.
These challenges are part of the 10th Defence India Start-up Challenges (DISC-10) and the Innovations for Defence Excellence (iDEX) initiatives.

Navy’s Commitment to Self-Reliance

Navy Chief Admiral emphasized the Navy’s commitment to becoming fully self-reliant by 2047.
The Navy had set a target to develop 75 futuristic technologies in partnership with domestic micro, small, and medium enterprises (MSMEs) and startups, surpassing the target with successful initiatives like SPRINT.

About

Indigenization aims to develop and produce defense equipment within the country to achieve self-reliance and reduce imports.
Self-reliance in defense manufacturing is a key objective.
DRDO, DPSUs, OFB, and private organizations play a critical role in indigenization.

Background

India shifted from license-based production to indigenous design due to overdependence on the Soviet Union.
R&D investments began in the mid-1980s.

Significant steps taken in defense indigenization

In 1983, Integrated Guided Missile Development Program (IGMDP) initiated to develop missile systems.
In 1990, Self-Reliance Review Committee set targets for self-reliance index (SRI) to increase from 30% to 70% by 2005.
Focus shifted to co-development and co-production with foreign partners.
Partnerships with countries like Russia, Israel, and France for various projects.

Why Indigenization

Reducing Fiscal Deficit: India is a major arms importer. India procures 60% of its weapon systems from foreign markets despite having a large defense budget.
Export Potential: India can export indigenous defense technology to neighboring nations.
Security Imperative: Indigenization is crucial for national security, maintaining technological expertise, and fostering innovation.
Addressing Threats: A self-reliant defense industry helps counter threats like ceasefire violations and attacks.
Employment Generation: Defense manufacturing leads to job creation.
Strategic Capability: Self-sufficiency in defense elevates India’s global standing.
Nationalism and Patriotism: Indigenous production boosts trust and confidence in the military.

Government Initiatives

Defense Procurement Policy emphasizes “Buy Indian-IDDM” (Indigenously Designed, Developed, and Manufactured) as the preferred way of acquiring defense goods.
Defense Acquisition Council can take a “fast-track” route for weapons procurement.
E-Biz Portal streamlines industrial license application.
Outsourcing and Vendor Development Guidelines promote private sector participation.
Uniform custom duty ensures a level playing field.
FDIpolicy in the defense sector which allows the FDI through automatic approval is increased from 49% to 74%.
Preference to ‘Buy (Indian)’, ‘Buy & Make (Indian)’ & ‘Make’ categories in procurement.

Present Scenario

INS Vikrant, India’s first indigenous aircraft carrier.
Development of indigenous Tejas aircraft.
Project 75 initiated to build six advanced stealth submarines in collaboration with countries like France, Germany, Russia, Sweden, Spain, and Japan.
Indigenous long-range artillery gun “Dhanush” with 38-kilometer strike range.
Arihant, India’s first indigenous nuclear submarine.
India’s ICBM status achieved with AGNI V.
Indigenous missile systems like Dhanush, Nirbhaya, Prithvi, Akash, and the Pinaka Multi Barrel Rocket Launcher.
Supersonic Cruise Missile BRAHMOS, a Joint Venture between India and Russia.
Arjun Tank, a third-generation main battle tank developed by DRDO, with efforts to reduce weight through composites.

Challenges

Inefficiency, productivity issues, and low R&D.
Delays and cost-overruns in projects like Battle Tank Arjun and LCA Tejas.
Lack of military inputs in decision-making.
Absence of a National Security Doctrine and long-term defense planning.
Lack of institutional capacity and capability to effectively implement indigenization policies.
The absence of a permanent arbitration committee for expeditious dispute resolution, as seen in the USA’s Defense Advanced Research Projects Agency (DARPA).
Inadequate infrastructure increases logistics costs, reducing cost competitiveness and efficiency.
Challenges in acquiring land hinder new players’ entry into defense manufacturing.

Way Forward

Establish a permanent arbitration cell to handle objections and disputes.
Encourage the private sector’s involvement to bring in technology and human capital for indigenous defense modernization.
Allocate substantial contracts to the private sector to boost confidence and reduce trust deficits.
Ensure fairness between the private industry, DRDO, DPSUs, and OFB.
Weapons systems must first be in service with the armed forces to achieve export capability.
Leverage the software industry and technologies like AI and cyber security for indigenous chip manufacturing.
Provide financial and administrative autonomy to DRDO to enhance confidence and authority.
Train and offer longer tenures to staff at the Department of Defense Production for continuity.
Structure investee/joint venture companies to be self-sufficient in product design and development, including maintenance and life cycle support.
Improve in-house design capabilities among the three services, similar to the Naval Design Bureau’s success in the Navy.
Develop a strong supply chain for optimizing costs.
Recognize the role of Indian SMEs in the global supply chain of OEMs (Original Equipment Manufacturers).
Implement the concept of 5 Is (Identify, Incubate, Innovate, Integrate, and Indigenise) for accelerated progress and cost reduction in defense procurement.

AMIGOS IAS