Mains Daily Question
Feb. 27, 2023
Raising India’s annual defense export from $1.5 Bn to $5 Bn by 2024-25 requires addressing the limitations faced by it. Discuss.
Approach:
Introduction: State the importance of the promotion of defense exports
Body: Mention limitations in promoting such exports and suggest measures to boost them.
Conclusion: Establish how the implementation of such solutions could help India raise its global stature further.
Answer:
The target to raise India’s annual defense exports to $5 billion by 2024-25, from the current $1.5 billion was reiterated by the Prime Minister at the recently concluded Aero India 2023. India needs to increase the manufacturing and promotion of exports of defense materials, equipment, and technology to boost its defense capabilities and generate revenue and employment opportunities.
limitations in promoting India's defense exports:
- Limited technological capacity: India's military sector lacks the technological resources necessary to export high-tech weapons and equipment. Tejas, an Indian-made fighter jet, has had operational and technological problems.
- Dependence on imports: India continues to rely heavily on imports to meet its defense needs, which limits its ability to export defense products.
- Regulatory obstacles: Defense export license and clearance procedures in India can be drawn out and complicated, deterring businesses from pursuing exports.
- Competition from seasoned players: With their stronger technological prowess and market reach, seasoned defense exporters like the US, Russia, and France pose a threat to India.
- Limited market access: Political and technological barriers prevent India from entering certain international military markets.
- Quality perception: The demand for India's defense exports is still constrained by the perception of inferior quality and dependability compared to established players. For instance, the low quality of India's homegrown INSAS weapon drew criticism.
- Lack of standardization: The development and export of common platforms and equipment may be hampered by the Indian armed services' lack of standardization in military procurement. For instance, multiple versions of helicopters were purchased by the Indian navy and army, which hampered maintenance and logistics.
- Limited research and development funding: India's military sector receives little money for research and development, which stifles invention. For instance, only 1,364 Cr was allotted in 2022–2023 under the "make" approach for prototype development for the Army and Air Force. However, only 122 Crores was used.
- India confronts political obstacles in its exports of defense products, including prohibitions on exports to specific nations or regions, worries about non-proliferation, and international penalties. For instance, international sanctions have restricted India's weapons shipments to Iran.
Suggestions to increase the promotion of India's defense exports:
- Increase technology capacity: India should put its efforts into increasing its technological capacity through investments in R&D and international partnerships. The BrahMos missile system was developed with successful Indian and Russian cooperation.
- Promote indigenization: India should encourage the indigenization of defense production to increase its potential as a defense exporter and decrease its reliance on imports. For instance, India's indigenous production of the AK-203 rifle in cooperation with Russia is anticipated to increase exports.
- Export restrictions should be simplified, and there should be fewer administrative roadblocks, according to the Indian government. For example, the Indian government streamlined the export authorization procedure for defense goods in 2020.
- Offer incentives: To encourage military industries to export, the Indian government can offer incentives like tax exemptions and subsidies.
- Cooperate with foreign partners: India should cooperate with foreign partners in joint ventures and technology transfer to improve its defense capabilities and encourage exports. For instance, the 2018–19 Apache helicopter production partnership between India and the US has increased exports.
- India should enter into agreements to open up access to global markets for defense products and to lessen limitations on technology transfers. For instance, the 2020 defense cooperation pact between India and the Maldives has created new export potential.
- Improve defense product quality and dependability: India should prioritize doing this in order to improve its standing as a defense exporter. For instance, India's reputation has improved as a result of the country's successful export of its Akash missile system to nations like Vietnam.
- Simplify defense procurement: In order to promote the creation and export of universal platforms and equipment, India should standardize its defense procurement procedure such as through Defense Acquisition Procedure in recent years.
- Boost research and development spending: India should spend more money on R&D in the defense industry to promote creativity and advancements in technology.
- Address political issues: India should work diplomatically to reduce tensions and establish agreements in order to address political issues such as limitations on exports to specific nations or areas.
Implementing the above solutions will ensure that India becomes a major exporter of defense materials, equipment, and technology, creating job opportunities, generating revenue, and promoting technological advancements. This would also make India Atmanirbhar in defense and a crucial geostrategic partner for other countries around the globe.