Core Demand of the Question
- Importance for National Security
- Importance for Economic Growth
- Measures to Enhance Defence Exports
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Answer
Introduction
To achieve the vision of ‘Viksit Bharat’ by 2047, India must transition from being a leading arms importer to a global defense manufacturing hub. A robust Defense Industrial Base (DIB) serves as the bedrock for strategic autonomy, ensuring that national sovereignty and economic prosperity are self-sustained and resilient against global supply chain disruptions.
Body
Importance for National Security
- Strategic Autonomy: A strong DIB reduces dependence on foreign Original Equipment Manufacturers (OEMs), preventing external interference in India’s geopolitical decisions during conflicts.
Eg: The indigenous development of the INS Vikrant aircraft carrier showcases India’s capability to secure its maritime interests independently.
- Technological Sovereignty: Domestic manufacturing ensures that critical “black box” technologies and source codes remain under national control, mitigating risks of embedded malware or remote kill-switches.
Eg: The Tejas Light Combat Aircraft (LCA) program ensures India possesses indigenous fourth-generation fighter technology.
- Supply Chain Resilience: Local production ensures a steady supply of spares and ammunition during prolonged high-intensity conflicts, avoiding the “parts diplomacy” of foreign suppliers.
- Deterrence Capability: Rapid prototyping and induction of advanced weaponry create a credible deterrent against adversaries by closing technological gaps.
Importance for Economic Growth
- Employment Generation: The defense sector acts as a multiplier for job creation, requiring a vast ecosystem of skilled engineers, technicians, and local MSMEs.
Eg: Over 25% of defense R&D budget is now earmarked for private industry and startups, fostering a new entrepreneurial class.
- Inward Investment: Policies like the Defence Acquisition Procedure (DAP) 2020 encourage Foreign Direct Investment (FDI), bringing in capital and global best practices.
- Industrial Spillovers: Innovations in defense often lead to “dual-use” technologies that revolutionize civilian sectors like telecommunications, aviation, and metallurgy.
- Reduced Forex Outflow: Substituting expensive imports with indigenous platforms saves billions in foreign exchange, which can be redirected toward social infrastructure.
Eg: India recorded its highest-ever defence production of ₹1.54 lakh crore in FY 2024 25, Indigenous defence production showed 174% surge from 2014-15.
Measures to Enhance Defence Exports
- Streamlining Certifications: Simplifying the ‘No Objection Certificate’ (NOC) process and end-user certificate clearances accelerates the speed of international transactions.
Eg: The Open General Export License (OGEL) regime has been introduced to simplify the export of specified items to friendly nations.
- Line of Credit: Providing concessional financial packages to developing nations in Africa and SE Asia encourages them to procure Indian-made hardware.
Eg: India offered a $100 million Line of Credit to Mauritius for the procurement of defense assets.
- Brand Promotion: Utilizing Indian missions abroad and international defense expos to showcase the reliability and cost-effectiveness of indigenous platforms.
Eg: The BrahMos missile deal with the Philippines worth $375 million serves as a flagship success for Indian defense exports.
- R&D Collaboration: Engaging in joint development projects with global partners allows India to co-own intellectual property and enter global supply chains.
Eg: The India-U.S. iCET initiative aims to co-produce jet engines and Stirling engines, opening global markets.
Conclusion
A self-reliant defense ecosystem is the “force multiplier” required for India’s transition into a global power. By harmonizing policy incentives with private sector agility, India can transform its security challenges into economic opportunities, ensuring that the march toward 2047 is backed by indigenous “Iron and Intellect.”
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