Context

India’s arms imports from Russia have reduced significantly from 64% to 45%  in the last five years (2017-2021). 

India’s Arm Purchases: France Emerges as Key Supplier Between 2018 and 2022

• During the years (2018 and 2022), India relied on France for arm purchases, making France the second leading provider.

Understanding India’s Shift: Decrease in Arms Imports 

• Diversification Strategy: India has changed its defense procurement strategy strategically, aiming to lessen reliance on Russian weapons in response to tensions with Pakistan and China.
• Change in Global Trends in Arms Trade: According to the SIPRI report , The United States and Western Europe account for 72% of all arms exports in 2019–23.
  • France has witnessed a 47% increase in arms exports, positioning itself just ahead of Russia.

• • Conversely, Russia’s arms exports have decreased by 53%, making it the third-largest arms exporter behind France.
• Replacement of  Imports with domestic goods: India is leaned towards domestically designed products. Therefore, it is focused on replacing imports with major arms that are designed and produced domestically.”

Impact of India’s Arms Import Diversification on the Economy: Opportunities and Challenges

India’s Role in the Global Arms Market

• India as Arms export market:  India was the primary arms export market for Russia, France, and Israel, according to SIPRI data.
• India:  top arms importer: India remained the top arms importer, with Saudi Arabia in second place.
  • Russia supplied 45% of India’s imports, followed by France at 29% and the US at 11%.
• It held the second-largest arms export market position for South Korea.
• Despite ranking 21st among arms exporters, India was the third largest market for South Africa.
• India Export: India ranked third as an arms supplier to Myanmar, with a 14% contribution of imports, after Russia and China.

Impact of reduction in India’s arms imports from Russia on Indian Economy

• Economic Implications:

  • Positive Impact: India’s exploration of alternative arms suppliers could lead to more favorable deals, enhanced competition, and potentially reduced expenses.
  • Negative Impact: Decreased arms imports from Russia may affect bilateral trade relations and economic ties between the two nations.

• Enhanced Bargaining Position:

• Reduced Dependence on Russian Arms can strengthen Negotiation Power of India 
  • Better Negotiation: Because India doesn’t need to rely as much on Russian weapons, it can negotiate with other suppliers more effectively.
    • This means India can get better deals and terms when buying weapons.
• Cost Saving and Improved efficiency: India’s ability to negotiate competitively with other suppliers like France  may lead to cost savings and improved efficiency in defense procurement. 

News Source: The Hindu