India's Aspirations for a Developed Nation by 2047
India aims to become a developed nation by 2047, relying heavily on its strategic capabilities, particularly in the defence industrial base. Historically, restrictive policies limited private participation and increased reliance on imports, creating structural vulnerabilities affecting economic potential and national security.
A Shift After Reforms
Recent reforms have opened the defence sector to private participation and liberalized foreign direct investment norms. Key changes include:
- Corporatization of the Ordnance Factory Board.
- Expansion of the list of arms and armaments under the ‘Make’ procedure.
- Promotion of innovation leading to increased defence production and exports to over 80 countries.
This reflects a maturing ecosystem capable of addressing domestic needs and contributing to global supply chains.
Global Security Landscape and India's Position
The evolving global security scenario, marked by conflicts in Europe, West Asia, and Asia, highlights the need for resilient domestic defence industries. For India, facing challenges along its borders and maritime domain, self-reliance in defence is critical.
Geopolitical Dynamics
Shifting geopolitical dynamics present new opportunities for India. Factors include:
- Europe's increased defence spending.
- Saturation of traditional suppliers.
- Growing demand for cost-effective, reliable platforms.
India's strategic location in the Indian Ocean Region and expanding diplomatic profile enhance its potential as a credible defence equipment supplier.
Simplifying Procedures for Defence Sector Growth
To realize its potential, India must focus on:
- Streamlining regulatory complexities for private-sector participation, especially MSMEs and startups.
- Accelerating export licensing, joint ventures, and technology transfer approvals.
- Providing long-term demand projections for private sector confidence.
The goal is to reach ₹50,000 crore in defence exports by 2029 through simplified procedures and policy continuity.
Role of the DRDO
The Defence Research and Development Organisation (DRDO) should evolve to focus on frontier research, while production and commercialization are handled by industry. This aligns with global practices and enhances competitiveness.
Facilitating Defence Exports
Setting up a dedicated export facilitation agency can streamline outreach and provide a single-window interface for global partners, overcoming challenges from fragmented institutional arrangements.
Key Steps for Improvement
Improving financial, testing, and certification frameworks is crucial:
- Ensure competitive credit lines for manufacturers.
- Meet domestic standards and conduct trials efficiently.
- Establish export financing instruments, integrated testing facilities, and adopt international certification protocols.
Proactive use of credit lines, government agreements, and service commitments can enhance India's market credibility.
Defence exports demonstrate technological maturity, strategic reliability, and India's role as a major international security actor. Strengthening the defence industrial base is vital for reducing import dependency, generating high-skilled employment, and enhancing geopolitical influence.
Recent progress is encouraging, but consistent efforts are needed to deepen reforms and foster an ecosystem supporting innovation and investment. This pursuit is not just strategic but a defining step toward India's emergence as a global power.
