Defence Production is Key to Nation's Status

The latest report of the parliamentary committee on defence has painted a grim picture of the military’s equipment shortfalls, attributed to decades of underfunding. Though the Modi government has streamlined the acquisition process, the shortfall cannot be addressed in one stroke. It will take time before the forces are adequately equipped. The shortfall also makes it implicit for the defence ministry to evolve a long-term policy on acquisition. It needs to prioritise the requirements so that items which are urgently needed are acquired urgently. For instance, light mountain artillery guns, night vision equipment and submarines will have to be procured from the global market at competitive prices at the earliest.

Regarding equipment for which the forces can wait without compromising defence capabilities, the government will have to galvanise the domestic manufacturers. India has companies, mainly in the private sector, which can manufacture any item, according to specifications. If they are told about the specific defence requirements and given the time to develop them, they will rise to the occasion. This will also be in furtherance of the government’s “make in India” policy. The benefits of developing indigenous capability are many. Suffice to say, it will free India from the stranglehold of foreign defence suppliers.

An array of equipment can come within the capabilities of domestic industry. It is not widely known that defence suppliers make more money by servicing the equipment and supplying parts than from the original sale. If Indian firms are able to supply equipment, the military will be assured of maintenance, overhaul and upgrades through the life-cycle of the equipment. More crucially, domestic industry would enter a design-and-production trajectory where their technological capabilities will converge with top-rung global arms suppliers. The defence ministry should move away from being the military’s procurement arm and become the agency to plan and promote indigenous design, development and manufacturing capability. No nation has emerged as a world power without a strong indigenous defence manufacturing capability.