Strengthening Indigenous Defence Manufacturing in India

The Indian defence sector is at a critical juncture, grappling with the challenge of enhancing indigenous manufacturing while still heavily reliant on imports. Currently, India imports approximately 35-40% of its defence equipment, particularly in essential areas such as jet engines, advanced electronics, and precision-guided munitions. This reliance underscores a significant gap between India’s ambitious goals for self-sufficiency and its current manufacturing capabilities.

Despite claims of local content, the reality often reveals a different story. For instance, a radar system that boasts 70% indigenous content may still depend on imported semiconductors or propulsion modules. This discrepancy highlights the complexities within the defence manufacturing landscape, where manufacturers sometimes exaggerate the local share of their products.

Challenges in the Defence Manufacturing Ecosystem

The issues plaguing India’s defence ecosystem stem from a combination of underfunding, fragmentation, and inefficiencies. Defence Public Sector Undertakings (PSUs) dominate the industry but frequently lack the necessary agility to meet evolving demands. Meanwhile, private firms face long procurement cycles and limited access to advanced technology, which hampers their ability to compete effectively on a global scale.

Global supply chains further complicate matters. Even advanced economies heavily rely on cross-border components, making it difficult for any nation to achieve complete self-sufficiency in defence manufacturing. Compounding these challenges are the misaligned incentives within the industry. Companies may inflate their claims of indigenous content to meet the requirements set forth by the Make in India initiative, knowing that the verification processes are often weak.

General Anil Chauhan, Chief of Defence Staff, expressed concerns over inflated claims of homegrown weaponry during a recent address. His warning highlights a critical issue: overpromising on local manufacturing capabilities not only delays operational readiness but also erodes trust between the armed forces and the industry.

Path Forward: Solutions and Investment

Addressing these challenges requires a multi-faceted approach. Robust auditing of supply chains and transparent certification of indigenous content are essential to ensure accountability. Furthermore, the introduction of stricter penalties for misrepresentation could deter companies from making inflated claims.

The Government of India (GoI) must also play a pivotal role by increasing investments in defence research and development. Encouraging joint ventures with global leaders in technology can help bridge the gap between ambition and capacity. Streamlining procurement processes to reward genuine innovation rather than mere compliance with existing norms will foster a more competitive environment for local manufacturers.

It is clear that simply urging arms companies to adopt a sense of “patriotism” in their profit-driven endeavours will not yield meaningful results. A comprehensive strategy that addresses the structural weaknesses in the defence manufacturing sector is essential for India to realize its aspirations for a self-reliant defence industry.