Experts Explain | Make in India in defence sector: Challenges, bottlenecks, and the way forward
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Context
Recent global conflicts (Ukraine, Gaza, Iran) have highlighted the critical need for technological self-reliance in modern warfare, especially concerning cost-effective technologies like drones. India, currently a top ten global arms importer, faces significant challenges in achieving 'Make in India' in defence, primarily due to an over-centralised acquisition process, delays, technological limitations, and barriers hindering private sector participation.
UPSC Perspectives
Economic
India's heavy reliance on defence imports, historically from the and increasingly from the and , is driven by domestic technological limitations and budgetary challenges. The government has attempted to boost domestic manufacturing through initiatives like the Strategic Partnership (SP) model, which aims to facilitate collaboration between Indian private firms and foreign Original Equipment Manufacturers (OEMs). Furthermore, the liberalisation of in defence—increased to 74% under the automatic route—is designed to encourage joint ventures and technology transfer. However, a significant economic hurdle remains: creating a level playing field. Currently, Defence Public Sector Undertakings (DPSUs) account for over 70% of manufacturing. Private firms struggle with preferential treatment for DPSUs, delayed payments, and onerous documentation. For UPSC Mains, analyze the economic rationale behind import substitution in defence, evaluating the effectiveness of FDI liberalisation and the SP model in building a robust, hybrid (public-private) defence industrial base.
Governance
The article highlights systemic governance issues plaguing India's defence acquisition process. The process is described as over-centralised and layered, often leading to significant procedural delays. The formulation of Quantitative Requirements (QRs)—the technical specifications for procurement—is often ambiguous, contributing to delays that can stretch projects over decades. A Parliamentary Standing Committee report noted that original timetables were not adhered to in a vast majority of projects. Another governance challenge is human resources; inadequate compensation structures within government-owned institutions make it difficult to attract and retain top engineering and scientific talent necessary for developing sophisticated technologies like jet engines. For UPSC, this connects to the broader theme of bureaucratic reform and procurement efficiency. You should be able to discuss the need for streamlining defence procurement (e.g., reforms in the Defence Acquisition Procedure (DAP)) and the role of the government transitioning from a primary manufacturer to a strategic buyer that funds innovation.
Defence & Strategic Affairs
The changing nature of warfare necessitates a shift in India's strategic priorities. While historically reliant on expensive, high-end conventional platforms (like aircraft carriers and fighter jets), recent conflicts demonstrate the growing strategic importance of scalable, cost-effective technologies such as Unmanned Aerial Vehicles (UAVs), autonomous systems, and advanced air defence capabilities. The wars in Ukraine and West Asia have shown how relatively inexpensive drones can inflict significant damage on critical infrastructure and act as a crucial retaliatory tool. Therefore, true strategic autonomy for India requires not just domestic production of traditional platforms but significant investment and innovation in these emerging technologies to prevent vulnerabilities from international supply-chain disruptions. For Mains (GS3 Security), you must evaluate how India is adapting its defence manufacturing strategy to incorporate these asymmetric warfare technologies and the role of the private sector in driving this innovation.