Scribd
Upload
42 views3 pages

Defense Sectorr

India has a significant domestic defense industry that is mostly government-owned. Some private companies are also involved in defense manufacturing. In recent years, the government has implemented reforms to boost domestic production and reduce imports, which currently make up 25-30% of defense equipment. The defense budget has also steadily increased, allocating over 2% of GDP to the military. India is now a major exporter of defense products and aims to increase domestic manufacturing and exports further under its "Aatmanirbhar Bharat" self-reliance initiative.

Uploaded by

tina21jangid
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
42 views3 pages

Defense Sectorr

India has a significant domestic defense industry that is mostly government-owned. Some private companies are also involved in defense manufacturing. In recent years, the government has implemented reforms to boost domestic production and reduce imports, which currently make up 25-30% of defense equipment. The defense budget has also steadily increased, allocating over 2% of GDP to the military. India is now a major exporter of defense products and aims to increase domestic manufacturing and exports further under its "Aatmanirbhar Bharat" self-reliance initiative.

Uploaded by

tina21jangid
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

DEFENSE SECTOR:

India's defense industry, namely the development of weapons, has been


significant. With around 70 lakh active soldiers armed and volunteers, India's
Forces are among the best in the world in terms of sheer numbers. Eighty
percent of India's domestic defense sector is owned by the government.
Several private defense industries are included in the defense industry of India,
along with the Defence Public Industry Undertakings (DPSUs), Ordnance
Factory Board (OFB), and DRDO.1 In the last several years, the government has
implemented several legislative measures and reforms to support domestic
design, development, and production of defense equipment, thereby fostering
national self-sufficiency in defense manufacturing and technology. Hindustan
Aeronautics Ltd. (HAL), Bharat Electronics Ltd. (BEL), and Bharat Earth Movers
Ltd. (BEML) are a few of the significant military manufacturing firms in India. 2
India must make use of the private sector's technological and financial know-
how, support PPPs (Public-Private Partnerships), and use them as tactical
instruments to increase domestic design, development, and manufacturing
capacity in the highly sought-after military sector.3
Between 2017 and 2021, India's defense exports increased by over six times,
from 1,520 crore to 8,435 crore (or Rs 12,815 crore) in the fiscal year 2021–
2022. Furthermore, by the fiscal year 2024–2025, the Indian government
wants to have invested $22 billion (175 trillion rupees). India has a robust
supply chain with over 12,000 micro, small, and medium enterprises (MSMEs)
and 194 new defense technology solutions. 4 For the fiscal year 2023–24, the
Indian government has allocated 2% of its estimated gross domestic product
(GDP) to the military. Furthermore, 13% of the whole government budget is
allocated to it.5
India receives 12% of global arms exports (by value). 6 Of the defense items
India consumes, approximately 70–75 percent are produced locally; the
remainder are imported. The finance minister said on February 1st that the
Ministry of Defence (MoD) will get an allocation of INR 6,21,541 crore (about
US$75 billion) in the Interim Budget of 2024–2025. The MoD's new budget is

1
https://tinyurl.com/bdfzxyhf
2
https://www.ibef.org/industry/defence-manufacturing
3
https://tinyurl.com/chnddufa
4
https://www.biogecko.co.nz/admin/uploads/03.%20Dr.Jayasree%20nambiar%20(IEEE).pdf
5
https://www.irejournals.com/formatedpaper/1705527.pdf
6
https://doi.org/10.55163/KFLQ6518
4.7 percent more than the previous outlays, making up 1.9 percent of GDP and
13 percent of CGE (Central Government Expenditure). 7 By 2025, the Ministry of
Defense wants $26 billion in aerospace and defense manufacturing revenue,
including $5 billion in exports. A total of 606 industrial licenses have been
granted to 369 businesses engaged in the defense sector as of April 2023. 8
India has joined the mainstream manufacturing sector with the "Aatmanirbhar
Bharat" concept. The government encourages foreign businesses to join the
public sector military units and is concentrating on enhancing the private
sector's involvement in both national and private growth. To further advance
"Build in India, Build for the World," the government invited corporate
participation in 310 more defense-related areas. To resurrect India's industrial
growth and, more crucially, advance the country as a worldwide
manufacturing powerhouse, 25 industries, including defense production, have
been designated.9 Furthermore, the private sector has shown tremendous
promise in the defense industry, with firms like Tata, M&M, L&T, and Kalyani
Forge engaged in the production and export of weapons. The Open General
Export License (OGEL) system for the export of parts and components,
technology transfer, major platforms, and equipment was established by the
government to promote the export of defense equipment. 10 Consequently,
India ranks third globally in terms of military spending. India, which was
formerly known for importing military equipment, is now an exporter of
important platforms. These Platforms include the Dornier-228, 155 mm
Advanced Towed Artillery Guns (ATAGs), Brahmos Missiles, Akash Missile
System, Radars, Simulators, Mine Protected Vehicles, Armored Vehicles,
PINAKA Rockets & Launchers, Ammunitions, Thermal Imagers, Body Armors,
Systems, Line Replaceable Units, and Parts & components of Avionics and
Small Arms.11 It was discovered that after deregulation, FDI in the defense
industry grew more slowly. Increased investment in India's defense industry is
noted to follow more liberalized FDI policies. India now has an advantageous
business climate because of the government's growth-oriented initiatives. The
Indian defense sector benefited greatly from FDI due to improvements in FDI
policy. 12 The production of military equipment within the country will provide
immediate impetus to the manufacturing sector as in the case of major
7
https://tinyurl.com/yjhyb3jx
8
https://tinyurl.com/5hdb6st9
9
https://www.idsa.in/policybrief/MakeinIndiaforDefence_lbehera_050215
10
https://www.irejournals.com/formatedpaper/1705527.pdf
11
https://www.irejournals.com/formatedpaper/1705527.pdf
12
https://nirdprojms.in/index.php/maj/article/view/159897/109725
industrialized nations like the USA, France, and Germany. 13 The field of
research and development would need to establish advanced design and
development skills. Collaborative partnerships with overseas designers and
producers may serve as the initial stride in this regard. 14
India and the UK signed a MoU for the International Cadet Exchange
Programme (ICEP) between the two nations. Defence Research and
Development Organisation (DRDO) would also collaborate with the British
Defence Science and Technology Laboratory (DSTL) for joint efforts in defense
research.15 A tripartite Memorandum of Understanding (MoU) for the
indigenous development of Advanced Fuelling and Control Systems for Engines
for Heavy Duty Applications has been inked by the Ministry of Defence with
BEML Limited, Bharat Electronics Limited (BEL), and Mishra Dhatu Nigam
Limited (MIDHANI).16

13
https://www.ijeast.com/papers/280-289,Tesma408,IJEAST.pdf
14
https://tinyurl.com/8yaac83h
15
https://tinyurl.com/5hdb6st9
16
https://tinyurl.com/yc2ntt6x

You might also like