How can India ‘Make for the World’? Unlocking its defence
India’s Defence Sector: Seizing Global Opportunities
India is at a pivotal moment in its ambition to become a leading global defense manufacturing hub. Transitioning from the “Make in India” initiative to “Make for the World” presents both significant opportunities and formidable challenges. Key issues such as policy alignment, technological advancement, and fostering small and medium enterprises (SMEs) must be addressed urgently to capitalize on this potential.
Challenges in Achieving Global Standards
India’s defense industry has made remarkable strides over the years, evolving from a heavy reliance on imports to establishing a robust indigenous manufacturing ecosystem. Organizations like the Defence Research and Development Organisation (DRDO) and Hindustan Aeronautics Limited (HAL) have played crucial roles in this transformation. In the fiscal year 2023-24, defense production reached an impressive ₹1.27 lakh crore, with exports contributing nearly ₹21,083 crore, highlighting the growing capabilities of Indian manufacturers.
However, significant hurdles remain. Despite the progress, India still depends on foreign suppliers for critical technologies, accounting for 9.8% of global arms imports between 2019 and 2023. The government’s initiatives to revise the Defence Acquisition Procedure and establish agreements like the Security of Supply Agreement (SOSA) are steps in the right direction. Yet, translating these policies into tangible outcomes is essential for long-term success.
Moreover, the current governance structure often limits collaboration between academia, startups, and industry, stifling innovation. The DRDO’s Prototype-Centric Project (PCP) model, which involves industry from the project’s inception, is a positive development. However, dismantling existing silos is crucial to ensure a cohesive ecosystem that supports export ambitions.
Investing in R&D and Building a Sustainable Future
The need for strategic research and development (R&D) is urgent. India’s R&D spending, currently at 3.9% of the defense budget, lags significantly behind countries like the U.S. and China, which allocate 10-15%. While the promise to increase this to 10% over five years is encouraging, a cultural shift towards embracing risk is equally important. The fear of failure, often reinforced by audits that penalize unsuccessful projects, stifles innovation.
Collaborative models with foreign original equipment manufacturers (OEMs) for co-design and co-development are gaining traction. Successful partnerships, such as the C-295 program between Airbus and Tata Advanced Systems, demonstrate the potential for Indian private industry to thrive. However, the transition from a “build-to-print” model to a “design-to-development” approach remains slow, hindered by lengthy acquisition cycles that can render technologies obsolete before they reach the market.
While India is poised to “Make for the World,” the path forward requires clarity, courage, and a commitment to aligning the defense ecosystem. By meeting global standards, investing in futuristic technologies, and positioning itself as a trusted security partner, India can transform from a buyer’s nation into a powerhouse of defense manufacturing.