India has been persevering in its pursuit to increase self-reliance or ‘Atmanirbharta’ in the country’s defence sector for several decades. The end goal of the government’s Atmanirbhar Bharat Campaign, specifically pertaining to the defence sector is to reduce dependence on imports and to develop a strong domestic defence industry that can meet the needs of the Indian armed forces.
Meanwhile, India has taken a variety of measures in policies and norms to achieve self-reliance in defence manufacturing and production.These include the creation of special economic zones and the provision of tax incentives and subsidies. The government has also established a number of procurement policies that prioritize the purchase of domestically-produced defence equipment.
Some key players in boosting the nation’s self-reliance in the defence sector are Hindustan Aeronautics Limited (HAL), Bharat Dynamics Limited (BDL), Bharat Electronics Limited (BEL), Larsen & Toubro (L&T), Mahindra Defence Systems and the Samtel Group.
Amid the rapidly changing geo-political scenario, with various potential flashpoints emerging around the world, India’s self-reliance in the defence sector has several important implications, both for the nation’s defence capabilities and for its economy. Some of the key implications of India’s efforts towards self-reliance in defence include
Improved Defence Capabilities: Self-reliance in defence production allows India to develop and manufacture its own weapons systems and equipment, reducing dependence on foreign suppliers and improving its defence capabilities independently.
Enhanced National Security: By reducing its dependence on foreign suppliers, India can ensure that its national security is not compromised by potential embargoes or other disruptions in the global supply chain. This was iterated by India’s Chief of Army Staff General Manoj Pande. He stated that India’s national security cannot be dependent on the “largesse of others”.
Boost to the Economy: The development of a domestic defence industry can lead to significant economic benefits, including job creation, the transfer of technology and skills, and the growth of related industries.
Increased Strategic Autonomy: Atmanirbharta in defence production allows India to have greater control over its defence policies and strategies, as well as greater flexibility in responding to changing security threats. In the current geo-political and geo-strategic landscape, India faces two hostile neighbours. Pakistan has historically targeted India with state-sponsored terrorism while China has been engaged in a border stand-off with the nation since 2020.
Improved Diplomatic Leverage: India’s self-reliance in defence can improve its negotiating power with foreign partners, allowing it to secure better terms for defence deals and cooperation agreements. In order to prioritise the indigenous production of defence equipment and enhance self-reliance in the defence sector, the Indian government has implemented several policies. Some of the key policies and initiatives taken by the Indian government in this regard are-
Make in India: The Make in India initiative was launched in 2014 to promote the manufacture of defence equipment in India and to encourage the participation of private companies in defence production.
Defence Procurement Procedure (DPP): The DPP has been updated several times to promote the procurement of indigenous defence equipment and systems, and to encourage the participation of private companies in defence production.
Strategic Partnership Model (SPM): The SPM was introduced in 2017 to promote the participation of private companies in the production of defence equipment, with the aim of boosting the domestic defence industry and reducing dependence on imports.
Defence Offset Policy: The Defence Offset Policy provides for the mandatory offset obligation for all defence contracts above a certain value, with the aim of promoting the transfer of technology and the development of the domestic defence industry.
Defence Industrial Corridors: The Indian government has set up two defence industrial corridors, one in Uttar Pradesh and the other in Tamil Nadu, to promote the development of the domestic defence industry and to encourage the manufacture of defence equipment in India. Overall, the Indian government’s efforts towards self-reliance in the defence sector have been aimed at developing a strong domestic defence industry that can meet the needs of the Indian armed forces and promote national security.
These efforts are expected to continue in the coming years, and the government is likely to take further steps to support the growth and development of the domestic defence industry.
