Indigenous Defence Industry – The coming boom

 

India was one of the biggest weapon’s importers in the world and was a dream for the various arms exporting countries. There was almost no ecosystem for arms manufacturing in the country. The mindset of the bureaucracy was so well entrenched that governments prior to 2014 could not do much to start an arms industry in the country despite the demand. Also, the private industry was kept out of this loop due to either vested interests or a convenient lack of trust shown by the bureaucracy.

The Ordnance Factory Board had become a fiefdom which created bureaucratic hurdles instead of facilitating arms purchases. There was also a mindset which pervaded all through the government which promoted the myth that Indian industry was incapable of making modern weapons.

With the new government coming in 2014 the scenario changed for the better, though gradually. The mindset had to be changed before anything else. But over the last 4 – 5 years or so things have improved. India has a very vibrant startup ecosystem. It is throwing up a large number of unicorns every year. This would have been a colossal waste of talent if the old way of doing things had persisted. Now the startups can participate in MoD tenders and competitions and bag lucrative contracts to design weapons and equipment for all branches of the forces.

Now startups make up a substantial part of the new arms designers for the MoD. The new ‘Atmanirbhar’ policy has helped them tremendously. Self-reliance in defense is the new ‘mantra’.  The earlier mindset is also changing and Indian private industry has started getting contracts for design and manufacture of weapons systems. Of course, not all arms can be made in India. Some of the technology which is not available in India will be imported. The government has published negative lists of weapons and equipment. The items on this list will not be imported. There will be import substitution of these items.

The changes implemented so far have paid dividends. India has bagged its first export deal for the Brahmos cruise missile made in collaboration with Russia. The Tejas Light Combat Aircraft is also in contention with other global competitors in tenders for supply of fighter and trainer aircraft.

With the current scenario unfolding, the future of this industry looks bright. As more private players come into the industry there will be competition, and will create a whole new ecosystem. This was lacking since independence. Going forward the Defense industry will become one of the main revenue streams for the government as the export potential of this industry is huge.

A right step has been taken as far as the Indian fighting forces are concerned. They are now being supplied largely by indigenous manufacturers. It is known from earlier experiences that civilian industry benefits from research and development in the defense industry and vice versa. This push to the arms industry could provide a giant leap forward for manufacturing in the country in a few years.