The Indian government has launched the ‘Atmanirbhar Bharat’ or self-reliant India’ campaign to reduce reliance on foreign imports and increase domestic manufacturing of defence equipment. By promoting indigenous production and reducing reliance on imports, the campaign aims to make India self-sufficient in a variety of sectors, including defence.
The Indian government has introduced various policies and measures to promote domestic manufacturing of defence equipment under the ‘Atmanirbhar Bharat’ initiative. These policies include increasing foreign direct investment in the defence sector, simplifying the defence procurement process, and encouraging the development of technology and innovation in the sector.
Development of various Indigenous Projects
Recently the Defence Ministry published a report in which it stated that India reduced the Import of various defence-related products and increased the export by a good factor.
Many significant projects including the 155mm Artillery Gun system ‘Dhanush’, Light Combat Aircraft ‘Tejas’, the Surface-to-Air Missile system ‘Akash’, Main Battle Tank ‘Arjun’, T-90 Tank, T-72 Tank, Armoured Personnel Carrier ‘BMP-II/IIK’, Su-30 MK1, Cheetah Helicopter, Advanced Light Helicopter, Dornier Do-228, High Mobility Trucks, INS Kalvari, INS Khanderi, INS Chennai, Anti-Submarine Warfare Corvette (ASWC), Arjun Armoured Repair and Recovery Vehicle, Bridge Laying Tank, Bi-Modular Charge System (BMCS) for 155mm Ammunition, Medium Bullet Proof Vehicle (MBPV), Weapon Locating Radar (WLR), Integrated Air Command and Control System (IACCS), Software Defined Radios (SDR), Lakshya Parachute for Pilotless Target Aircraft, Opto Electronic Sights for Battle Tanks, Water Jet Fast Attack Craft, Offshore Patrol Vessel, Fast Interceptor Boat, etc. have been produced in the country during the last few years.
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These projects are the result of several policy initiatives and reforms implemented by the government in recent years to encourage indigenous design, development, and manufacture of defence equipment, thereby promoting self-reliance in the country’s defence manufacturing.
These initiatives include, among other things, prioritising the procurement of capital items from domestic sources under the Defence Acquisition Procedure (DAP)-2020. Notification of four ‘Positive Indigenisation Lists’ totalling 411 items of Services and three ‘Positive Indigenisation Lists’ totalling 3738 items of Defence Public Sector Undertakings (DPSUs), for which an embargo on import would be imposed beyond the timelines indicated; Simplifying the industrial licencing process by extending the validity period; Liberalization of Foreign Direct Investment (FDI) policy, allowing 74% FDI through the automatic route; simplification of the Make Procedure; launch of Mission DefSpace; launch of the Innovations for Defence Excellence (iDEX) scheme, involving start-ups and Micro, Small and Medium Enterprises (MSMEs).
Conclusion
These policy initiatives aimed to encourage indigenous design, development, and manufacturing of defence equipment in the country, reducing long-term reliance on imports. According to data through December 2022, expenditure on defence procurement from foreign sources has decreased from 46% of total expenditure in 2018-19 to 36.7%.
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