Answer

India’s drive for self-reliance in defence production has been significantly propelled by the Atma Nirbhar Bharat initiative, emphasizing indigenous manufacturing and innovation. Recent policy reforms and enhanced defence allocations in Budget 2024-25, about ₹6,21,940 crores, underscore a transformative shift, reinforcing strategic autonomy and positioning India as a key global player in advanced defence technologies.

India’s Striving for Self-Reliance in Defence Production

• Vision of Aatmanirbhar Bharat: India’s ‘Aatmanirbhar Bharat’ initiative aims to reduce dependence on foreign arms by fostering indigenous production of defence equipment.
  For example: The Defence Acquisition Procedure (DAP) 2020 prioritizes ‘Buy Indian’ categories over imported systems.
• Encouraging Domestic Manufacturing: Policies like the Defence Production and Export Promotion Policy (DPEPP) 2020 are designed to promote Indian defence manufacturing capabilities and increase exports.
  For example: In FY 2023-24, India’s domestic defence production reached ₹1.27 lakh crore, marking a record high, with an impressive increase of approximately 174% from ₹46,429 crore in 2014-15.
• Indigenization of Defence Projects: Projects like Tejas LCA and the Advanced Medium Combat Aircraft (AMCA) emphasize indigenous technology to strengthen the defence ecosystem.
  For example: The Tejas LCA has an indigenous content of about 50% and aims to increase it to 60% in future variants.
• FDI Liberalization: Increasing the FDI limit in the defence sector from 49% to 74% through the automatic route encourages private participation in domestic defence production.
  For example: Companies like Airbus and Lockheed Martin have partnered with Indian firms for technology transfers and joint production.
• Positive Indigenization List: The government has issued a list of over 500 defence items that will be banned from import to encourage local manufacturing.
  For example: The list includes items like light combat helicopters and communication equipment, pushing HAL and DRDO to ramp up production.

Challenges Faced by Defence PSUs in Meeting Operational Requirements

• Delays in Project Execution: Defence PSUs like HAL and DRDO struggle with prolonged development timelines, failing to deliver systems on time.
  For example: The Tejas LCA project, conceptualized in 1983, saw its first flight in 2001 and is still facing production delays hampering Squadron strength.
• Dependence on Foreign Technology: Critical components like engines and sensors often rely on imports, undermining true indigenization efforts.
  For example: HAL’s delay in delivering LCA Mk-1A jets is due to General Electric’s failure to supply engines on schedule.
• Resource Constraints: Inadequate funding and skilled manpower hinder innovation and scaling of defence projects.
  For example: DRDO’s Ballistic Missile Defence (BMD) system faced delays due to resource shortages during initial development stages.
• Lack of Accountability: PSUs lack effective accountability mechanisms for missed deadlines or technical shortcomings.
  For example: HAL’s failure to deliver aircraft on time has often left the Indian Air Force dependent on aging MiG-21 squadrons.
• Limited Export Capabilities: Despite producing quality equipment, PSUs face challenges in competing in the global defence market.

Addressing Challenges Faced by Defence PSUs

• Comprehensive Audits: Conduct periodic audits of HAL and DRDO to identify bottlenecks and fix accountability for delays and inefficiencies.
  For example: A proposed audit for the Tejas LCA program could analyze delays and ensure timely delivery of Mk-1A variants.
• Enhanced Private Sector Participation: Collaborating with private firms can bring innovation, efficiency, and competition to defence production.
  For example: The Strategic Partnership model in DAP 2020 allows private firms to build systems like submarines and fighter jets.
• Improved Resource Allocation: Boost funding and provide state-of-the-art facilities to PSUs to enhance their R&D and production capabilities.
  For example: The budgetary allocation to DRDO has been increased to Rs 26,816.82 crore in FY 2025-26 from Rs 23,855.61 crore in FY 2024-25 which is 12.41% higher than the BE of 2024-25.
• Technology Transfer Agreements: Leverage offsets and partnerships with global firms to reduce reliance on imports for critical technologies.
  For example: The BrahMos missile, jointly developed with Russia, showcases effective international collaboration for indigenous systems.
• Streamlined Procurement Processes: Simplify procurement and approval mechanisms to accelerate production cycles and ensure timely delivery.
  For example: The Fast Track Procurement (FTP) route has expedited the acquisition of critical defence equipment like drones.

Empowering Defence PSUs is pivotal for achieving Aatmanirbhar Bharat. By promoting public-private partnerships, boosting R&D funding, and embracing cutting-edge technologies, India can transform its defence sector. Streamlining processes and cultivating a skilled workforce will ensure operational readiness, paving the way for a future where India is not just self-reliant but a global defence hub and will help India in reaching the target of Rs 50,000 crore of Defense exports by 2029. 

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