Defence Manufacturing: Is India Inc. ready?

Since the launch of ‘Make in India’ program, considerable thrust has been given to defence manufacturing. Transformation from being one of the largest importers of arms into a credible defence equipment manufacturer takes a lot.

Country’s defence spending is expected to go beyond USD 600 billion by 2022 and every private company indulged into defence manufacturing wants a pie of that, especially when USD 150 billion of contracts are there to be awarded within a few years.

Current scenario of Imports:

Some of the Indian Companies in Defence Sector:
· Mazagon Dock Ltd
· Mishra Dhatu Nigam Ltd
· Mahindra Defence Systems with Bae Systems & Seabird Aviation (Private Player)
· Rolta ( A Private Player)
· Tata Advanced Systems with Boeing,Sikorsky Aircraft Corporation & Israeli Aerospace Industries
· Ashok Leyland ( Private Player)
· Bharat Dynamics Ltd
· Bharat Earth Movers Ltd
· Bharat Electronics Ltd ( BEL)
· Bharat Forge
· Electronics Corporation of India Ltd (ECIL)
· Garden Reach Shipbuilders & Engineers Ltd
· Goa Shipyard Ltd
· HCL with Boeing & Circore Aerospace Inc (Private Player)
· Hindustan Aeronautics Ltd ( HAL)
· Reliance Defence

Defence Manufacturing, Exports and its future:

Indian exports are negligible when it comes to the total market share on a global level. India has exported defence equipment to 22 countries over last one year, including UK, US, Israel and Russia. India exported forging equipment, electronic assemblies, flight panel controls to the US.

India exported transmitting tubes to UK and MIG & Sukhoi 30 aircraft spares and services to Russia. India’s major exports included Cheetal helicopters to Afghanistan, Dhruv helicopters and bulletproof jackets to Nepal, Sukhoi avionics and MIG spares to Malaysia, offshore petrol vessels and ammunition to Mauritius and Jaguar aircrafts and spares to Oman.

Indian private players are looking for foreign partners as the foreign direct investment in defence sector is pushed up to 49%. Reliance defence had signed a manufacturing and maintenance deal potentially worth $6 billion with Russia's Almaz-Antey, the maker of an air defence system. Apart from the Akash air defence system, the government had cleared the purchase of five S-400 air defence systems that are estimated to cost about $4.5 billion.

Similarly kalyani group tied up with Rafael of Israel to make Spike Anti-tank missiles for the Indian military.

Indian private players are still far away from accessing the key sensitive technologies related to fighter aircrafts and nuclear submarines however they are approaching fast by the virtue of transfer of technology and domestic manufacturing set-up under the make in India program. What must is to invest heavily in R&D facilities along with the collaboration of key government institutions like DRDO with the private partners. Incoming demands for defence equipment is heavy and it should only be fulfilled by boosting the manufacturing process along with minimum government interference and a feasible policy framework.

(Image: Indiatimes)