403
Sorry!!
Error! We're sorry, but the page you were
looking for doesn't exist.
India accelerates its push for self-reliance in defense manufacturing
(MENAFN) India is accelerating its push for Atmanirbharta (self-reliance) in defense manufacturing, aiming to strengthen both its strategic and economic position. The government is prioritizing the production of modern weaponry within the country, ensuring that military equipment is either designed domestically or at least manufactured in India.
A key initiative in this effort is the Positive Indigenization List (PIL), launched in 2020, which identifies over 5,000 defense items that must be produced locally instead of being imported. The initiative has already shown results, with small and medium enterprises (SMEs) and startups playing a significant role in manufacturing high-quality components for global defense suppliers.
Historically, India’s defense industry was heavily dependent on Soviet technology and state-owned enterprises. During the 1950s, Soviet assistance played a crucial role in building India’s industrial infrastructure, including military aviation and other key sectors. At one point, nearly 85% of India’s military equipment came from Soviet or Russian sources.
However, after the Soviet Union collapsed, India recognized the need to diversify its defense procurement and move towards a market-driven approach. The 1991 economic reforms further accelerated this transition by deregulating markets and encouraging private sector participation.
Unlike the public sector, which is often slowed down by bureaucratic red tape and fixed salary structures, the private sector offers competitive wages, attracts top talent, and operates with greater efficiency. Private companies can quickly enter joint ventures, foreign collaborations, and technology acquisitions, making them more agile in meeting defense production needs.
Globally, the defense industry is largely led by private companies. Of the top 100 defense firms, 41 are based in the US, all of which are privately owned. These companies collectively generated $317 billion in arms revenue, accounting for nearly half of the total revenue of the world's largest defense manufacturers. In contrast, major defense firms in China, India, and Russia remain state-owned.
India’s ongoing reforms indicate a significant shift toward privatization in defense manufacturing, aiming to boost domestic production, reduce reliance on foreign suppliers, and position itself as a global defense exporter.
A key initiative in this effort is the Positive Indigenization List (PIL), launched in 2020, which identifies over 5,000 defense items that must be produced locally instead of being imported. The initiative has already shown results, with small and medium enterprises (SMEs) and startups playing a significant role in manufacturing high-quality components for global defense suppliers.
Historically, India’s defense industry was heavily dependent on Soviet technology and state-owned enterprises. During the 1950s, Soviet assistance played a crucial role in building India’s industrial infrastructure, including military aviation and other key sectors. At one point, nearly 85% of India’s military equipment came from Soviet or Russian sources.
However, after the Soviet Union collapsed, India recognized the need to diversify its defense procurement and move towards a market-driven approach. The 1991 economic reforms further accelerated this transition by deregulating markets and encouraging private sector participation.
Unlike the public sector, which is often slowed down by bureaucratic red tape and fixed salary structures, the private sector offers competitive wages, attracts top talent, and operates with greater efficiency. Private companies can quickly enter joint ventures, foreign collaborations, and technology acquisitions, making them more agile in meeting defense production needs.
Globally, the defense industry is largely led by private companies. Of the top 100 defense firms, 41 are based in the US, all of which are privately owned. These companies collectively generated $317 billion in arms revenue, accounting for nearly half of the total revenue of the world's largest defense manufacturers. In contrast, major defense firms in China, India, and Russia remain state-owned.
India’s ongoing reforms indicate a significant shift toward privatization in defense manufacturing, aiming to boost domestic production, reduce reliance on foreign suppliers, and position itself as a global defense exporter.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.
Most popular stories
More Story
Comments
No comment