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View: Why ‘Make in India’ in defence cannot succeed without private sector

No private company will invest in manufacturing defence platforms unless Indian armed forces buy from them.

Published on: Jan 31, 2024, 14:08:48 IST
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New Delhi: In her joint address to Parliament today, President Draupadi Murmu said that ‘Make in India’ and ‘Aatmanirbhar Bharat’ had become strengths of new India and lauded that defence production had crossed the one-lakh crore mark.

Defence minister Rajnath Singh with the leaders of the armed forces.
Defence minister Rajnath Singh with the leaders of the armed forces.

Bharat’s defence exports, according to Finance Minister Nirmala Sitharaman are expected to touch USD 2.8 billion or 24000 crore in 2024. The Indian defence exports have grown 23 times in the past nine years, surpassing USD 1.9 billion or 16000 crore since Prime Minister Narendra Modi came to power in 2014. The defence export figure in 2013-2014 was mere 686 crore even as India is now preparing to supply BrahMos land attack supersonic missiles to Philippines, which is facing the brunt of Chinese military coercion in the South China Sea.

While all these point to a positive growth trajectory to Indian defence manufacturing and exports but the Narendra Modi government will also have to shoulder the responsibility of amending the tedious and long winded Defence Procurement Rules in order to allow the government to buy from Indian private sector manufacturing latest defence platforms. The Indian defence private sector is at the mercy of a moribund Defence Ministry bureaucrats, Defence PSUs and DRDO, who all make tall talks but deliver very little on ground. To add to this mess are the Indian armed forces, whose qualitative requirements (QRs) from the vendors are twisted in such a way that Indian manufacturers are often kept at bay and foreign vendors make a killing. For example, the QRs for fighter aircraft or submarines are made in such a way that one should not be surprised if the Navy did not want submarines to fly and the Air Force wanted the fighters to transform into sub-surface combatants.

It is quite evident that PM Modi has invested a lot into the ‘Make in India’ initiative but the defence start-ups will fade away if the government does not provide them adequate support to manufacture the desired platform but also ask the armed forces to buy them. Simply put, why should any third country buy from Indian manufacturers if its own armed forces do not patronize them. The government needs to hammer into the Indian military-defence bureaucracy that Indian private defence manufacturing must be supported as Defence PSUs and DRDO alone cannot deliver. Take for example, the DRDO’s drone project which has totally failed to deliver even though countries like Iran and Turkey are exporting to third countries including Russia and Pakistan.

Also read: India, France sign pact to jointly develop, launch military satellites

Rather than focusing on their core competence, the DRDO has developed a habit of growing berries in Leh to drugs for immunity to COVID to building ICBMs, and fiercely protects its fiefdom. Even if the DRDO does not have the technology, it is sure to write a letter to the government to prevent the armed forces getting a better developed and proven product. A classic example is how the DRDO stymied the US Javelin and Israeli Spike shoulder fired anti-tank guided missile (ATGM) projects. It is another matter that India had to buy Spike ATGMs from Israel as part of emergency purchases (at much higher prices) after China transgressed into Ladakh in May 2020 as the DRDO product was still undergoing trials. Fact is that the DRDO letter is a project killer as the same will be leaked to the media to ensure that the government shelves the acquisition or else gets accused of taking bribes from a foreign or even a joint venture vendor.

Also read: Navy to monitor Chinese ship in Indian Ocean headed to Maldives

If the ‘Make in India’ project of the Modi government has to succeed, then tough decisions must be taken in coming months to ensure accountability on part of the DRDO and the Defence PSUs. The Indian private players must also be subjected to the same accountability so that indigenous defence manufacturing ensures that India is not dependent on any third country to defend itself. One must remember, the Indian Navy’s latest submarines were planned in 1999 and the Air Forces’ shelved MMRCA project was planned in 2001. The first of the 36 Rafales landed in India in July 2020 at the peak of India-China tensions with the bloody Galwan skirmish happening only a month before. ‘Aatmanirbhar Bharat’ is a measure of Indian confidence in its own capabilities and strength. PM Modi will have to go for disruption if Bharat is to come out as the factory of the world.

 
ABOUT THE AUTHOR
Shishir Gupta

Shishir Gupta is Executive Editor at Hindustan Times and one of India's top journalists covering national security, strategic affairs, foreign policy and geopolitics. Over the past three decades, he has extensively reported on India's military, diplomatic and security landscape, covering every major conflict and national security challenge, from the 1999 Kargil War and the 2020 East Ladakh standoff to Operation Sindoor in 2025. He has also covered major terror attacks, including the IC-814 hijacking, the 26/11 Mumbai attacks and the 2025 Pahalgam terror strike, along with numerous Pakistan-backed terrorist incidents in the Kashmir Valley and across India. He has reported on national and state elections for more than three decades. A recognised authority on strategic affairs, Gupta has covered India's nuclear programme since the Pokhran-II (Shakti series) tests in May 1998 and has written extensively on global nuclear issues, Indian diplomacy and the country's expanding global outreach. He has also reported widely on international conflicts and terrorism, with a special focus on the Indian subcontinent. Gupta has interviewed Prime Minister Narendra Modi more than four times, including Modi's first interview with the print media after becoming Prime Minister in May 2014. His other interviews include three with the Dalai Lama, as well as conversations with Benjamin Netanyahu, Amit Shah, Yogi Adityanath, S. Jaishankar, Nirmala Sitharaman and Piyush Goyal. He is the author of Indian Mujahideen: The Enemy Within (Hachette, 2011) and Himalayan Face-off: Chinese Assertion and Indian Riposte (Hachette, 2014). He was awarded the Chevening-Wolfson Joint Scholarship at Wolfson College, University of Cambridge, UK, in 1998 and participated in the International Visitor Leadership Program (IVLP) of the US State Department in 2006. He received the Ben Gurion Prize from Israel in 2011 and the K. Subrahmanyam Prize for Strategic Studies in 2015 from the Manohar Parrikar Institute for Defence Studies and Analyses (MP-IDSA). Since 2024, he has hosted Point Blank, Hindustan Times' weekly YouTube show on global geopolitics.

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