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‘Make In India' In Defence

October 16 - 31, 2018

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BUSINESS ECONOMICS

Self-reliance in the defence sector has been a long cherished goal of the Indian policymakers.

- Kuntala Sarkar

‘Make In India' In Defence

Efforts have been undertaken in this regard but India still imports a sizeable amount of military hardware from other economies. The spiralling defence budget can largely be attributed to these imported military equipment and hardware. However, India is trying to reduce its military dependency. According to the Draft of Defence Production Policy, 2018, Indian indigenous defence production increased from 43,746 crore in 2013-2014 to 55,894 crore in 2016-2017. According to the Draft of Defence Production Policy, “India is aiming to achieve a turnover of 1,70,000 crore in defence goods and services, involving additional investment of nearly 70,000 crore and to achieve export of 35,000 crore in defence goods and services by 2025.”

The Defence Research and Development Organisation (DRDO) recently established and developed around 52 defence labs to strengthen research in defence. The Hindustan Aeronautics Limited (HAL) has been promoting and undertaking research in defence aeronautics whereas the Mazagdon Dock Shipbuilders Ltd. (MDL), Garden Reach Shipbuilders and Engineers (GRSE) have been pioneering research in maritime defence. The Bharat Dynamics Ltd. (BDL) and the Bharat Earth Movers Ltd. (BEML) have been pioneering research for the army.

Currently, India has the fifth largest defence budget in the world as it obtains 60% of its weapon systems from the foreign market. The Indian government is focusing on strategic tie-ups for enhancing self-dependence in the defence sector. The Chapter-VII of Defence Procurement Procedure (DPP), 2016, includes a chapter on ‘Revitalising Defence Industrial Ecosystem through Strategic Partnerships’.

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