News Highlight
The Defence Minister approved the third Positive Indigenisation List (PIL) of 780 strategically important Line Replacement Units (LRUs)to encourage self-reliance in defence manufacturing and minimise imports.
Key Takeaway
- This list is a continuation of the two Positive Indigenization Lists (PILs) of Line Replacement Units (LRUs).
- The indigenous development of these LRUs, subÂsystems, and components will bolster the economy and reduce the import dependence on defence public sector undertakings (DPSUs).
Positive indigenisation list
- The Ministry of Defence has notified a ‘First Positive Indigenisation list’ of 101 items in 2020 and a “Second Positive Indigenisation list’ of 108 items in 2021.
- This is a big step in promoting indigenisation in the defence sector.
- These lists include some high-technology weapons systems like artillery guns, assault rifles, corvettes, sonar systems, transport aircraft, light combat helicopters (LCHs), radars, wheeled armoured platforms, rockets, bombs, armoured command post vehicles, and many other items to fulfill the needs of our defence services.
Self-reliant Defence Industry
- For a few years now, the Ministry of Defence has tried to boost the ‘Make in India’ policy in defence manufacturing.
- In the wake of its new Atma Nirbhar Bharat policy and the border clash between Indian and Chinese soldiers in the Galwan valley, India renewed its pursuit of self-reliance.
Need for Self-reliance in Defence
- Strategic vulnerability:
- India’s external dependence on its defence-preparedness creates vulnerabilities during military crises.
- India procures 60% of its weapon systems from foreign markets, which increases its strategic vulnerability.
- Geostrategic concern:
- Considering the geopolitical situation around the Indian borders, external dependence and extra dependence on a single player are also worrisome. Hence, India needs a solid indigenous defence manufacturing capacity.
- Economic growth:
- It will also boost the Gross Domestic Product (GDP), as the reduced import bills will be replaced by indigenous production and other factors of production.
- Employment generation:
- As the government estimates, a 20-25% reduction in defence-related imports could create an additional 100,000 to 120,000 highly skilled jobs in India.
- Repair and assemble issue:
- Currently, imported equipment in India is creating multiple challenges related to their Maintenance, Repair & Overhaul (MRO) due to the non-availability of spares and assemblies. This equipment without proper MRO can put India at significant risk, mainly during a war-like situation.
Challenges in boosting defence manufacturing
- Manufacturing and procurement-related delay:
- There are bureaucratic and political hurdles in India. Indian defence suppliers also take more time to complete the projects. There is also a problem of delays in the delivery of the projects. This hurts India’s image as a trusted supplier.
- For example, defence research organisations have gone through several production delays and cost overruns while developing the Battle Tank Arjun and Light Combat Aircraft (LCA) Tejas.
- Lack of manpower:
- There is a shortage of skilled scientists in the organisations and a high vacancy rate.
- For example: In Defence Research and Development Organisation (DRDO), there is a shortfall of 808 scientists, slightly more than 10% of the sanctioned strength.
- Lack of critical technologies:
- Poor design capability in critical technologies, inadequate investment in R&D and inability to manufacture significant subsystems and components hamper indigenous manufacturing.
- Lack of long-term budgeting:
- Most Indian defence budget goes towards salaries, retirement benefits, perks and benefits, MRO equipment, etc. This limits the government’s capacity to focus on long-term budgeting for the defence sector.
- Long gestation period:
- The creation of a manufacturing base is capital and technology-intensive and has a long gestation period. For a factory to reach optimum levels of capacity utilisation, it could take anywhere between five to 10 to even 15 years from the time a unit commences production
Steps Taken by the Government
- Positive indigenisation list:
- Ministry of Defence has notified a ‘First Positive Indigenisation list’ of 101 items in 2020 and a ‘Second Positive Indigenisation list’ of 108 items in 2021. This is a big step in promoting indigenisation in the defence sector.
- Aatmanirbharta in defence:
- The Union Budget 2022–23 has given momentum to Aatmanirbharta in defence. The budget has shown India’s proper efforts to achieve self-reliance in the defence sector. Around 70% of the defence budget has been reserved for the domestic defence industry.
- Defence Acquisition Procedure 2020:
- New DAP incorporates several measures to boost the domestic defence industry and Make in India; procedures are simplified to reduce time delays and enhance ease of business.
- Defence Industrial Corridors:
- The government has inaugurated two defence industrial corridors, in Tamil Nadu and in Uttar Pradesh, to boost the flagship ‘Make in India’ programme that, in turn, would attract investments as well as encourage employment generation
- iDEX:
- Innovations for Defence Excellence (iDEX).
- The objective of iDEX is to bring startups together to innovate, develop technology and solve problems related to defence and aerospace.
Present Scenario
- INS Vikrant:
- It, also known as Indigenous Aircraft Carrier 1 (IAC-1), is the first aircraft carrier built in India for the Navy.
- Supersonic Cruise Missile BRAHMOS:
- It is a joint venture between India and the Russian Federation.
- The Indian contribution is 50.5%, and the Russian contribution is 49.5%.
- Arjun Tank:
- It is a third-generation main battle tank developed by DRDO
Way forward
- Mandatory transfer of technology for subsystems:
- It is imperative that when India imports any weapon systems, there should be a plan for the ammunition and spares to be eventually manufactured in India so that we are not driven to seek urgent replenishments from abroad during crises.
- Self-reliance should not be taken to extremes:
- Thrust for indigenous R&D should coexist with the import of cutting-edge military technologies to safeguard defence vulnerabilities
- Dispute Settlement Body:
- There is an urgent need for a permanent arbitration committee to settle disputes expeditiously. In the USA, the procurement agency DARPA has a permanent arbitration committee that resolves such issues amicably, and their decision is final.
- Promoting defence exports:
- The government should promote indigenously developed defence equipment and products.
- The role of the CDS:
- The Chief of Defence Staff (CDS) could examine defence acquisitions from a tri-service angle; this may avoid delays and speed up the defence procurement process.
Pic Courtesy: Deccan Herald
Content Source: The Hindu