Defence equipment is given to the Army

The Defence Minister handed over several indigenously developed defence equipment and systems to the Indian Army.

The indigenously developed equipment includes
- Future Infantry Soldier as a System (F-INSAS)
- New generation anti-personnel mine ‘Nipun’
- Rugged and automatic communication system with enhanced capabilities
- Upgraded sights system for tanks
- Advanced thermal imagers and stateoftheart high mobility infantry protection vehicles and assault boats.
The Army has jointly developed the equipment in collaboration with Defence Public Sector Undertakings and the Defence Research and Development Organisation (DRDO).

Indigenisation is the capability of developing and producing any defence equipment within the country for the dual purpose of achieving self-reliance and reducing the burden of imports.
The Defence Research and Development Organisation (DRDO), Defence Public Sector Undertakings (DPSUs), Ordnance Factory Board (OFB) and private organisations are playing a critical role in the indigenisation of defence industries.

Despite having the fifth largest defence budget in the world, India procures 60% of its weapon systems from foreign markets.
Higher import dependency leads to an increase in the fiscal deficit.
The indigenisation enables India to export its indigenous defence technology and equipment to the neighboring nations.
Security concern:

Indigenisation in defence is critical to national security.
India is surrounded by porous borders and hostile neighbours, and needs to be self-sufficient and self-reliant in defence production.
Employment generation:
As per government estimates, a reduction of 20-25% in defence-related imports could directly create an additional 100,000 to 120,000 highly skilled jobs in India
Strategic Capability:
A self-sufficient and self-reliant defence industry will place India among the top global powers.

The Union Budget 2022–23 has given momentum to Aatmanirbharta in defence.
The budget has depicted India’s true efforts to achieve self-reliance in the defence sector.
Around 70% of the defence budget has been reserved for the domestic defence industry.
“Make in India”:
It aims to promote indigenous design, development, and manufacturing of defence equipment, platforms, systems, and sub-systems. It also aims to enhance the role of the Ministry of Micro, Small and Medium Enterprises (MSMEs) in the defence industry.
Defence Procurement Policy:

Based on the recommendations of the Dhirendra Singh committee, Defence Procurement Procedure 2016 added an additional category “Buy (Indian-IDDM)”,
i.e. indigenously designed, developed and manufactured, as the most preferred method of defence goods acquisition.
Uniform custom duty:
To establish a level-playing field between the Indian private sector and the public sector, all Indian industries (public and private) are subjected to the same kinds of excise and custom duty levies.
The FDI policy:

Composite foreign investment up to 49% in defence is allowed through the government route (FIPB) and beyond 49% with the approval of the Cabinet Committee on Security (CCS) on a case-to-case basis.
Restrictions such as requiring the single largest Indian shareholder to hold at least 51% equity and a complete restrictions on foreign institutional investors (FII) have been removed to facilitate investment in the sector.

Millennium Aero Dynamics and Cochin Shipyard jointly developed and produced the INS Vikrant.
It is the first aircraft carrier built in India completely.
INS Arihant:
Bhabha Atomic Research Centre (BARC) and DRDO jointly developed India’s first indigenous nuclear submarine Arihant.
Project 75:

The Indian Navy initiated a submarine program called Project-75.
Under this project, the Indian Navy intends to acquire six conventional, diesel-electric attack submarines, which will also feature advanced capabilities.
The Integrated Guided Missile Development Programme:
Under the Integrated Guided Missile Development Programme (IGMDP), India developed five missiles in India namely
- Akash
- Prithvi
- Nag
- Trishul
- Agni

Infrastructural deficit:
Infrastructural deficits, such as dedicated ports for defence production, increase India’s logistics costs thus reducing the country’s cost competitiveness and efficiency.
Land acquisition:
Land acquisition issues restrict the entry of new players in defence manufacturing and production.
Dispute Settlement Body:
There is an urgent need for a permanent arbitration committee that can settle disputes expeditiously.
Lack of institutional capacity:
Lack of an institutional capacity and capability to take different policies aimed at indigenisation of defence to its logical conclusion

A robust supply chain is critical for a defence manufacturer looking to optimise costs.
Indian SMEs are playing a key role in the global supply chain of OEMs (Original Equipment Manufacturers).
Permanent Arbitration Cell:

A permanent arbitration cell can be set up to deal with all objections and disputes.
For example, in the USA, the procurement agency DARPA has a permanent arbitration committee that resolves such issues amicably, and their decision is final.
Training and Tenure:
The staff at the Department of Defence Production need to be trained and given longer tenures to ensure continuity.
Indigenous “chip” industry:
Software Industry and technologies like artificial intelligence and cyber security should be used to develop and manufacture the “chip” indigenously, a vital component.
Role of the private sector:
A private Sector boost is necessary as it can infuse efficient and effective technology and human capital required for the modernisation of ingenious defence industry.

Content Source: The Hindu