"Our government is committed to reducing imports and promoting atmanirbharta in equipment for the armed forces," said India's Finance Minister Nirmala Sitharaman on February 1, 2022, while presenting the Union Budget in Parliament.
Putting forth a string of measures to promote the Indian indigenisation process, she outlined the overall defence budget, which stood at INR 5.25 lakh crore — a 10% increase over the previous year's budgetary allocation. A similar budgetary increase was announced to procure defence and security equipment with a capital outlay of INR 1.52 lakh crore.
But what stood out for leaders in the defence industry and those watching from the sidelines was the minister’s announcement that 68% of the budget allocated for equipment procurement would drive the domestic defence equipment manufacturing industry.
Such support, coupled with infrastructural developments in the defence manufacturing sector, have propelled India into realising a longstanding ambition of indigenising its defence and security solutions.
At the time of writing, India remains one of the largest defence importers in the world - accounting for almost 11% of the total arms imported worldwide. Countries like China, Saudi Arabia, and Australia also import a significant portion of their defence and security equipment needs.
However, in the last few years, India has made concerted efforts to wean itself off imports and move towards indigenisation. As per an analysis of the arms transfer trends by the Stockholm International Peace Research Institute, India's imports of major arms declined by 21% between 2017 and 2021.
Since 2012, the imports from Russia have come down by the highest percentage — a whopping 47%. New Delhi's turn away from the dependence on arms received from Russia is a significant development, and couldn’t be more timely, given the difficulty of dealing with Russia in the face of diplomatic pressure. This is also in line with the country's efforts to check out for self-reliance in defence production.
However, it's noteworthy that, between 2017 and 2021, imports from France have increased by ten times, and the country still looks to speed up the pace of procurement to complement the security needs in the wake of fundamental challenges posed by China and Pakistan.
The geopolitical tensions between India and its two neighbours persistently enhance thevalue of being self-sufficient. With China's rise as a global superpower and its continued assertiveness in the region, it has become necessary for India to step up its security preparedness.
Pakistan's state-sponsored terrorism, military provocations, restlessness in Kashmir, and repeated border violations have invariably added to a jittery neighbourhood.
And then there's the ongoing Russia-Ukraine conflict, which has resulted in Russia's isolation from the West. India, which continues to be Russia's largest customer of military equipment, has been trying to keep a balance in its defence ties with Russia and the West.
But it's a multi-faceted challenge and a big one at that. Anirban Bhaumik, Assistant Editor at Deccan Herald, notes that New Delhi is "worried about disruptions in supply of spares from Ukraine, particularly for some of the tanks and missile systems...and for gas turbine engines." He adds that China's concurrent push to leverage this opportunity for bolstering itself in the South China Sea and along the Himalayas, in particular, has not gone unnoticed.
With soaring political tensions, financial constraints, regulatory blockades, and everything in between, it's always better to be self-sufficient. And this is where the case of India's defence indigenisation picks up a lot of steam.
The recent turbulent waves emanating from the Russia-Ukraine conflict have certainly added fuel to the fire in India's inclination toward domestic development. The government of India (GOI) wants domestic firms to develop defence equipment worth INR 25.15 billion in 2022. In fact, 310 items, including Unmanned Aerial Vehicles (UAVs), Naval Utility Helicopters (NUH), etc., have been identified solely for indigenous production.
Under the umbrella of "Make in India," a slew of indigenisation initiatives are surfacing. A recent example would include Defence Research and Development Organisation's (DRDO) collaboration with the private sector to help drive missile production. To say that the Indian private sector is eager to seize these opportunities would be a massive understatement.
As the country marches towards becoming a major defence equipment manufacturer, the Indian tech ecosystem must focus on building the enabling framework required to nurture this growing space.
Athena has committed to this ideal by delivering operational intelligence solutions to help counter border security threats and mitigate safety and security risks. This includes bespoke solutions in the areas of intrusion detection, drone counteraction, heat detection, etc., which have the potential to impact lives in ways that stand to improve both national and individual security.
We aim to cater to dispersed defence needs amid the network-centric, threat-aware and technology-driven world. As a purely Indian venture, Athena is placing its bets on a robust tech ecosystem that will help mould the country's large defence market into a vibrant manufacturing hub.