EDITORIAL: Pushing for self-reliance – Telangana Today

Indigenization is crucial, but importing modern weapons cannot be ignored

Self-reliance in the defense sector is a noble goal, but over-reliance on public sector companies to achieve indigenization goals can be a stumbling block. As the country faces dual threats from Pakistan and China, there needs to be a balance between the promotion of ‘Atmanirbharta’ in defense production and the requirement of the armed forces to ensure readiness. There is no question that indigenization is an important way to close critical gaps in defense capabilities, however, this push should not mean ignoring the need to import modern weapons. The Ministry of Defense has approved a new list of 928 components and subsystems that will be sourced entirely from domestic industry, which will no doubt help the localization cause, but private sector participation will further speed up production. This is the fourth such “Positive Indigenization List (PIL)” that includes replacement-of-the-line units, subsystems and components for a variety of military platforms, equipment and weapons. India’s indigenization efforts depend heavily on the commitment of DRDO (Defense Research and Development Organization) and DPSUs (Defense Public Sector Undertakings). However, many of DRDO’s projects have been delayed. The Armed Forces, which is expected to spend some $130 billion on capital acquisitions over the next five years, also raised product quality concerns. Their needs are urgent, so they often turn to imports instead of waiting for DRDO projects to come to fruition. DRDO’s problems range from manpower shortages in key areas to a lack of proper synergy with the armed forces.

To compete with global defense R&D organizations, DRDO must have larger budgets, a well-trained manpower, and greater freedom to operate. The best way forward is to encourage more private sector companies to participate in defense production, especially in mid-to-high-tech areas, to facilitate the localization of the sector. Top institutions like IITs and even private universities need to be incentivized to enter the defense sector for academic programs. The government needs to provide tax breaks for defense manufacturers. Given the prevailing institutional constraints on manpower import and cutting-edge technology, defense budget allocations are bound to be short for a country as large as India. Innovative ways must be found to increase resources. Imports of high-tech platforms, equipment and even ammunition show that India still has a long way to go to become self-reliant in key defense technologies. The private sector remains unable to meet the needs of the armed forces, largely because it is deliberately excluded from defense production. Often, these procedures are cumbersome and not conducive to the private sector. There is a need to encourage start-ups, especially those related to cutting-edge technological products, such as drones used in warfare.