Context: India’s defence production crossed Rs 1,26,887 crore in the financial year 2023-24. India's defence exports have reached an all-time high, surging from ₹686 crore in FY 2013-14 to ₹21,083 crore in FY 2023-24. The country’s defence exports are poised to reach Rs 50,000 crore by 2029-30. The year 2024 carried forward the ‘aatmanirbhartha push’ in the defence sector.
Relevance of the topic:
Prelims: Society of Indian Defence Manufacturers.
Mains: Conceptual understanding of India’s Military diplomacy and efforts in that regard.
Key Developments in 2024:
1. Breakthrough in India-China Relations:
- The breakthrough in the India-China border talks were announced on October 21, 2024. It ended the four-year long stand-off that began after the Galwan attacks in 2020.
- Implications:
- Reduced tensions along the Line of Actual Control (LAC).
- The thaw in the relationship will help the Ministry of Defence (MoD) to formalise the jointness of the tri-services without any immediate fear of lurking danger at the LAC and the Line of Control with Pakistan.
- It will also encourage the MoD to pursue modernisation of the armed forces to equip and train soldiers for the tech-driven future warfare.
Also Read: India-China Relations: Developments & Challenges
2. Strengthening Military Diplomacy:
- Engagement with Russia: The Indian Defence Minister visited Russia to:
- restore supply chain disruptions caused since the Russia-Ukraine conflict.
- expedite delays in acquisition of the remaining two units of the S-400 surface-to-air missile systems and Kamov helicopters.
- explore Transfer of Technology (TOT) for maintenance of Su-30MKI frontline fighters of the Indian Air Force.
- Most probable partnership with Russia as a foreign original equipment manufacturer (OEM) to locally develop a new engine (110 kN Class thrust) for an advanced medium combat aircraft (AMCA) for India.
- restore supply chain disruptions caused since the Russia-Ukraine conflict.
This move aims to restrengthen India’s military diplomacy with Russia.
- Engagement with the US: In August 2024, India signed a Security of Supply Arrangement (SOSA) with the US, a milestone to strengthen bilateral defence cooperation and supply chain resilience.
Stockholm International Peace Research Institute’s (SIPRI) report of 2024:
- As per the Report, presently Russia accounts for India’s 36% of arms imports. For the first time, Russia’s exports of defence products to India have come down below half of India’s total arms imports.
- Despite the decline in imports, India’s military inventory has about 60% Russian-origin products.
- The US, France and Israel have filled the gaps left by Russia in the arms trade with India.
3. Advancing self-dependence in Defence Production:
- Co-development: HAL (India) signed a memorandum of understanding with General Electric (US) for the co-development of GE-414 engines (98 kN thrust) to power Tejas LCA Mk-2 fighters.
- Exporter of Defence products:
- Engagement with the US: India’s defence exports to the US have grown to over 50% of India’s total defence exports, surpassing $2.8 billion during the last 5 years.
- With South-Asian Nations: India is also putting its ‘Look East’ act together to restore defence engagement with neighbours like Sri Lanka and Maldives.
- India is calibrating its strategy to successfully push arms sales in Africa and South America.
Role of Society of Indian Defence Manufacturers (SIDM):
- SIDM is India's premier defence industry association that was established in 2017.
- It works in close partnership with the Government to create a supportive policy environment for the defence sector's advancement.
- It represents the entire spectrum of Defence and Aerospace manufacturers in India, spanning both the public and private sectors.
- The organisation has played a pivotal role in shaping key policies, including the:
- Defence Acquisition Procedure (DAP) 2020
- Draft Defence Procurement Manual (DPM) 2020
- Draft Defence Production and Export Promotion Policy (DPEPP) 2020
- Positive Indigenisation Lists.
- Advocacy signing Security of Supplies Arrangement (SOSA) between India and the United States.
- SIDM has strengthened the defence manufacturing ecosystem through innovative initiatives, like:
- constitution of Defence Technology Incubation Council (DTIC) to nurture critical innovations.
- constitution of Defence Export Promotion Council (DEPC) to boost Indian defence exports.
- Strategic partnerships with the Government e-Marketplace (GeM) for promoting procurement of Indian defence products and services.
Conclusion: The Indian government needs to bring a set of defence reforms to streamline policy on acquisitions, given that the tendering process is still complicated and lengthy, and to facilitate exports. SIDM can play a pivotal role in further integrating user/armed forces, MoD and the defence industry for achieving indigenisation goals and policy reviews for ease of doing business.