It's time India focuses on defence exports

The government had announced a Defence Production Policy in 2011 with an objective of achieving substantive self-reliance in design, development and production of equipment/weapons systems/platforms required for defence in as early a time frame as possible; to create conditions conducive for the private industry to take an active role in this endeavour; to enhance potential of SMEs in indigenisation to broaden the defence R&D base of the country. While the Defence Production Policy lays due emphasis on indigenous production of defence equipment with a greater role of private sector, SMEs and R&D institutions, the objective of Defence Production Policy will not be achievable without having a well thought out export strategy, so that the industry is assured of access to export markets in addition to domestic market for investing in the sector.

A country is self-reliant when the design, development and production of state-of-the-art systems that are required by the armed forces are done within the country.

India's defence exports were Rs4,682 crore ($0.66 billion) in 2017-2018 and Rs 10,500 crore ($1.47 billion) in 2018-19. Out of the 2018-19 exports, India's eight Defence Public-Sector Undertakings (DPSU) and 41 Ordnance Factories (OF) accounted for Rs 800 crore (7.6 per cent of total defence exports).

The Union Defence Ministry has already set a goal of a turnover of $25 billion (Rs 1.75 lakh crore) in defence manufacturing in the next five years that included an export target of $5 billion (Rs 35,000 crore) worth of military hardware.

On December 30, 2020, the government had approved the export of indigenously developed surface-to-air Akash missile system and set up a Panel to ensure faster approvals for acquisition proposals by various countries.

About 50 Indian companies in the private sector have contributed to defence exports. Some of the major export destinations for defence products have been Italy, Maldives, Sri Lanka, Russia, France, Nepal, Mauritius, Sri Lanka, Israel, Egypt, UAE, Bhutan, Ethiopia, Saudi Arabia, Philippines, Poland, Spain and Chile. The major defence items being exported are Personal Protective items, Offshore Patrol Vessels, ALH Helicopter, SU Avionics, Bharati Radio, Coastal Surveillance Systems, Kavach MoD II Launcher and FCS, Spares for Radar, Electronic System and Light Engineering Mechanical Parts.

India is one the largest importers of arms globally. According to estimates, the Indian armed forces are projected to spend around $130 billion in capital procurement in the next five years. Offset is an important mechanism available to the domestic industry to enhance export capability. The Offset Policy may be reviewed and aligned towards final integration of weapons/systems in India and promoting export of such systems from India. The Policy may also be reoriented towards acquisition of critical technologies required for high end weapons/platforms so that the same can be leveraged for export. It's time India focuses on defence exports.