Vidhan Bharat

To become a global powerhouse, India must attain self-sufficiency in defense equipment manufacturing; the Make in India Policy and Atmanirbhar Bharat Abhiyan is projected to assist India in this regard.

India is one of the world’s top arms importers, accounting for 11% of global arms sales.¹ Improving military technologies, obtaining customization, and uniqueness are critical for India to acquire a surprise advantage over its adversaries. To become a global powerhouse, India must attain self-sufficiency in defense equipment manufacturing; the Make in India Policy and Atmanirbhar Bharat Abhiyan is projected to assist India in this regard.

The role of Atmanirbhar Bharat in the Defense Sector:

1. Indigenous Production: The emphasis on indigenous production is at the core of Atmanirbhar Bharat. The sixth Positive Indigenisation List, a record defense output of Rs. One lakh crore, and a spike in exports to Rs. 16,000 crore were the highlights of the year. The budget dedicated a record 75% to domestic industry, with PM Modi inaugurating HAL’s Helicopter Factory as a huge step forward in indigenous manufacturing.² 
2. Research and Development (R&D): With several innovations and successes, 2023 has proven to be an exceptional year for India’s DRDO. DRDO has successfully tested Kaveri derivative engine and the autonomous landing of a high-speed flying-wing UAV.³
3. Public-Private Partnerships (PPP): Collaboration between the government and private sector is pivotal. On May 12, 2023, DDP notified the 4th PIL of 928 items, which includes LRUs/ Sub-systems/ Assemblies/ Sub-assemblies, raw materials, low value critical spares, and components of DPSUs for time-bound indigenization. In contrast to last year, this year’s Srijan Portal has almost 4500 indigenous goods, including 173 PIL items. During the ‘Bandhan’ event, a concerted effort was made to form B2B partnerships, and more than 250 such agreements worth more than Rs. 75,000 crore were concluded. The collaborations are a move toward improving traction for business, ToT, and joint development among the enterprises.⁴

The role of Make-in-India in the Defense Sector:

1. Streamlining Regulatory Processes: Simplifying and expediting regulatory processes for defense manufacturing facilitates smoother implementation of Make-in-India policies. This includes obtaining the necessary clearances and approvals on time. (Exchange rate variation protection, testing facilities, third-party inspection, etc.) DPIIT is collaborating closely with 24 sub sectors that were selected with consideration for the competitive advantage and strengths of the Indian industry, as well as the need for import substitution, greater employability, and export potential.
2. Incentivizing Domestic Production: Financial incentives, tax benefits, and other perks have been provided to support indigenous production and design in the defense sector. Funds have been set aside in the Defense Ministry’s Capital Acquisition Budget for domestic and foreign acquisition in the ratio 67.75:32.25 for the fiscal year 2023–2024. Furthermore, the Ministry of Defense has instructed the allocation of Rs. 1,500 crore for the purchase of goods from startups.⁵

Overview of India’s Defense Exports

India’s defense exports hit a record high of Rs. 15,920 crore in the fiscal year 2022–2023, up about Rs. 3,000 crore from the year before and a staggering ten times since 2016–17.⁶

India currently exports to more than 85 nations. By 2024-2025, the Defense Ministry hopes to increase India’s yearly defense export earnings to $5 billion. In the next five years, it aims to reach a turnover of Rs. 1.75 lakh crore in defense production.⁷

The Crucial Nexus

The nexus between the Defense Sector, Atmanirbhar Bharat, and Make-in-India initiatives is crucial for India’s strategic autonomy and economic growth. By fostering indigenous production, investing in research and development, and promoting public-private partnerships, the country can build a robust defense manufacturing ecosystem.

---

References:

1. Bedi, R. (n.d.) India tops the global list in arms imports, Belies Govt’s tall claims of ‘Atmanirbharta’, The Wire. Available at: https://thewire.in/security/india-tops-global-list-in-arms-imports-belies-govts-tall-claims-of-atmanirbharta 
2. Bhutani, C. (2024, January 2). 2023 a year of landmark strides in defence production. Business Today. https://www.businesstoday.in/bt-tv/video/2023-a-year-of-landmark-strides-in-defence-production-411591-2024-01-02#:~:text=In%202023%2C%20India’s%20Ministry%20of,16%2C000%20crore%20highlighted%20the%20year 
3. Admin, R. K. (2023, December 29). DRDO’s triumphs in 2023: A year of milestones for India’s Defense Research and Development. DRDO’s Triumphs in 2023: A Year of Milestones for India’s Defense Research and Development – Indian Defence Research Wing. https://idrw.org/drdos-triumphs-in-2023-a-year-of-milestones-for-indias-defense-research-and-development/#:~:text=Submarine%2DLaunched%20Cruise%20Missile%20  
4. Ministry of Defense. (n.d.). Ministry of Defence – Year End Review 2023. MINISTRY OF DEFENCE – YEAR END REVIEW 2023. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1989502 
5. Ministry of Defense. (2023, August 4). Self-reliance in defence sector. Press Information Bureau. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1945710
6. Shankar, R. (2023) India’s Atmanirbharta in defense sector: Embracing Indigenous Technologies and growth in exports, Bharat Shakti. Available at: https://bharatshakti.in/indias-atmanirbharta-in-defence-sector-embracing-indigenous-technologies-and-growth-in-exports
7. Shankar, R. (2023) India’s Atmanirbharta in defense sector: Embracing Indigenous Technologies and growth in exports, Bharat Shakti. Available at: https://bharatshakti.in/indias-atmanirbharta-in-defence-sector-embracing-indigenous-technologies-and-growth-in-exports

---