Based on threat perception, entire spectrum of security and operational challenges and fast technological changes taking place across the globe, India is rapidly modernising its defence capabilities to keep the Armed Forces in a state of readiness. It means preparing for the future, increasing self reliance and optimizing resources for the maximum efficiency. In recent years, India has taken several ground breaking steps like creating defence planning committee, appointment of CDS to bring in greater synergy with Ministry of Defence, long term modernization plan by factoring the emerging or futuristic security situations, army design bureau, reorganization of Army headquarters among others.
Under ‘Make in India’ program indigenous design, development and manufacture of defence equipments are being vigorously encouraged in the country, thereby reducing import of defence equipment. The defence budget for the financial year 2022-23 is Rs 5,25,166 crore, an increase of Rs 46,970 crores or 9% over last year’s Rs 4,78,196 crore. As per the budget, Rs 1.52 lakh crore is being spent in capital expenditure. In plain words, the allocation under capital expenditure relates to modernisation and infrastructure development of the Armed Forces only. Out of this 1.52 lakh crore, 68% of the amount is being spent on indigenous manufacturing to encourage investments and attract fresh capacity creation. An increase of more than 10% in back-to-back capital budgets expresses the continued push towards the modernisation of the armed forces. 25% of defence R&D budget is earmarked for private industries, startups and academia. Private industry is being encouraged to take up design and development of military platforms and equipment in collaboration with DRDO and other organizations through special purpose vehicle model.
Ease of doing business is helping indigenous defence production too. An independent nodal umbrella body created for meeting wide ranging testing and certification requirements of defence systems and platforms, is helping domestic industry through faster processes and cost-efficiency. Two positive indigenisation lists comprising 101 and 108 items were promulgated by Department of Military Affairs (DMA) under Ministry of Defence in recent months. Of these, 153 items are planned to be indigenized upto December, 2022. In addition, to minimize import by DPSUs, Department of Defence Production has also notified a positive indigenisation list of things. The list contains 2500 items, which are already indigenized and 351 items which are planned to be indigenized in coming three years till December, 2024, of which 172 items are expected to be indigenized upto December, 2022.
Moreover, positive indigenisation list comprises defence equipments which are being designed, developed and manufactured over a period from 2020 to 2025. It is estimated that over approximately Rs. five lakh crore worth of equipment included in both the positive indigenisation lists, will be procured from domestic industry over the next five to seven years. Government is also considering adding more items for indigenous production. Time line to add more items is reviewed continuously based on the requirements of Armed Forces as well as capability of domestic industry. Despite all these revolutionary efforts, we still need to make a lot of reforms or changes to rise to the fast changing security situations and the ‘Agnipath Scheme’ is in line with that only.
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