“Independence in defense is a much wider subject than first appearing. Yes, India is moving in the right direction, but there are many issues that we aim to achieve. To overcome it clearly.
Read again: Reference budget 2025: India, please prepare for tomorrow’s modern war
Defense budget allocation: stability with room for growth
The defense distribution of India with a budget of 2025 may be within the 1.9-2 % range of GDP, as in the past few years. This stability provides financial stability, but experts warn that it may not be enough to respond to the growing external threats. Some experts feel that it will gradually increase to 2.5 % in the next four years, and will greatly enhance the strategic positioning of India in this area.
In a discussion at the 21st Subroto Mukerjee seminar, Secretary of Defense Rajesh Kumar Singh pointed out that “the number of domestic procurements today has expanded more than domestic industries.” On the other hand, Niraji Gupta states: to achieve independence with defense: “Recently, the Secretary of Defense has stated that there is no shortage of financial resources for procurement, but I often hear a contradictory view of whether the allocated funds are being completely used.”
He continued, “It is necessary to focus only on the size of the budget, but also to match the ability of the defense industry with the vision of Atomanil Barat (India). The project has stagnated due to financial constraints. I have never heard of it, so it seems that the funds are enough. “
Read again: India’s defense budget 2025 Bridge global ambitions and domestic reality?
Reduction of issues in defense share and funding use
The ratio of defense spending in India’s national budget has been declining continuously for the past few years, decreasing to 16 % in 2013, reflecting financial caution in 2025 and projecting to 13 %. Experts have warned that they could be reduced. Effective response to evolving threats to security.
In FY2015, capital spending accounted for only 27.66 % of defense budgets based on modernization. According to Dr. Amit Singh, Associate Professor of Jawaharlal Nehru UNIVERSITY, “DAP 2020 is a major catalyst for indigenous convergence, but true independence is 50 % to 80-90 %. It is a distant dream that requires a high level of globalization.
“The actual ratio is sustained, the trend is clear -a job is created, and more procurements are being made in Japan, but it takes time to achieve complete independence. The goal is to minimize the dependence.
Domestic procurement: Strategic movement
Focusing on the procurement of indigenous people in India, the 1.72 trillion Lupy ($ 21 billion) is clearly revealed, and 75 % are domestic purchases. According to Dr. Shin, this policy is certainly useful, but in order to maintain long -term progress, it is necessary to organize inefficient and bureaucratic delays. He continued, “If it may take some time, but if you continue some of these aggressive policies to achieve independence in the defense department, that is a more reliable private partner in India. Since it is rarely included, it will further improve the efficiency of a state -owned company.
Mr. Gupta states: “This policy actually supports Indian industries by creating employment and enabling knowledge from countries with advanced technology. However, 50 % indigenous content requirements are accurately implemented. It is doubtful whether it is done. “
“Currently, the Defense Acquisition Procedure (DAP) 2020 defines the content of the indigenous people as subtracting the import price from the sales price. However, this formula is overly common and about the actual Indian content. We do not provide detailed understanding.
According to him, “the more meaningful approach is to evaluate the content at the component level and develop a certain percentage of core technology and materials for indigenous people. This shift is India in independence. We will provide a clearer situation of progress.
Production of defense and export growth
India’s defense production is on a high growth orbital that passes one rupee ($ 12 billion) in FY2013. The national defense export has reached a record of $ 2.5 billion, indicating 14 times since 2016. This expansion is mainly promoted by both the private industries and the business (DPSU). , Each.
Puneet Kaura, Managing Director and CEO of Samtel Avionics LTD, states that if the Indian defense ecosystem has evolved, investing in R & D increases manifolds and the manufacturing process becomes more flexible, exports will truly expand. I am. He continued, saying, “These partnerships enable important technology relocation and share knowledge, and create a robust domestic supply chain while greatly reducing development and production costs. However, complicated procurement. We recognize specific issues of processes, such as long -term visibility needs for orders, high initial investment requirements.
Government policy that forms modernization
DPEPP 2020 and Defense Acquisition procedure 2020 will form a powerful Enabura to explore indigenization in India. Under the DPEPP, sales of 1.75 thousands of $ 1.75 ($ 21 billion) are required, and in 2025, an export target of 35,000 crawls ($ 4.2 billion) was proposed. At the moment, 59 % of the items already exist as indigenous people. If these lists are expanded and supporting MSME and startups, this will increase the speed.
Kartik Ganapathy further states: “In the unique processing process, R & D is required to raise funds, policy incentives, and ease of business reform in the defense sector. Legal advisors rationalize the process of IP ownership and license agreements, and the indigenous technology of indigenous technology. You can encourage more private sector involvement in development.
Hardle to independence: R & D gaps and delays
Despite the major advancement of its impeccation, India is still the world’s largest weapon importer. Between 2014-18 and 2019-23, India’s weapons imports have increased by 4.7 %, emphasizing the issues of overcoming the R & D expansion and the delay of the defense project. Kartik Ganapathy, Induslaw’s founding partner, pointed out the need to balance strategic and indigenous people.
“It is necessary to continue strategic imports until the maximum indigenous is achieved,” he advocates and seeks a step -up approach that shifts from assembly and testing to full -fledged indigenous manufacturing. He states: “If you provide tax incentives to the strengthening of the patent system and the startup of high -tech defense, you can deal with these issues. Legal intervention is a fair access to global supply chains while negotiating technology sharing agreements. Can be secured.
Technical hurdle: Create the gap between innovation
Development of advanced technologies such as fighters and drones is still an important issue. Samtel’s experience has revealed important obstacles, such as restrictions on access to special components, test facilities, and long authentication cycles. To improve these problems, Puneet Kaura says, “Companies can navigate these issues well through strategic partnerships with global technology leaders and a large amount of investment in cutting -edge R & D facilities.” I mentioned.
On the other hand, Amit Singhin has emphasized the need to promote innovation and deal with restricted bottlenecks to overcome the technical issues facing the Indian defense department.
Gupta also states that another obstacle to deal with the technical gap is a major issue to provide funds to Defense R & D. He is believed to be a defensive project with a long pregnancy period. Banks find it difficult to support under the conventional financing mechanism. He continued: For example, in my industry, the highest investment needed to produce materials locally, often make projects economically impossible. “
“Furthermore, the government’s grant or tax incentives for R & D are limited. The government’s initiative, such as shared funds for capital investment and the introduction of a specific” one makeup “scheme in material technology. It helps to fill the gap and support local production. “
Also read: In 2024, India broke the Chinese salamis rice strategy
Looking in 2029: Future forecast
The forecast for 2029 suggests that India’s annual defense production has reached 3,000 lupines ($ 36 billion), increasing exports to 50,000 crawls ($ 6 billion). Achieving these ambitious goals requires powerful public -private collaboration, sustainable investment in R & D, and efficient manufacturing processes. Personally, Mr. Kaura has the growing Indian abilities in high demand technology such as avionics and drones, which are supported by the cost of the manufacturing industry, as a major player in global weapon trade. I think it is positioned.
Role of public -private partnership
Public -private partnership (PPP) is the center of accelerating India’s defense indigenous congestion. Amit Singh argues that PPP is a quick truck to achieve independence, and can improve all issues, such as sharing risks, combining expertise, adjusting relationships, and procuring capital. It is necessary to rationalize the procurement process and high initial investment.
Ganapathy states: “PPP is important to utilize the innovation of the private sector and reduce the dependence on the business (PSU). , Legal reforms to prevent transparent framework and risk.
Balance between strategic imports and impecciation
The continuous dependence on India requires a step -by -step approach to importing alternatives. As SINGH suggests, it is a proven strategy that started with assembly and tests before proceeding to the production of full -fledged indigenous people. This approach guarantees that India’s defense capabilities are steadily shifted toward independence and remain solid.
Kartik Ganapathy states: Policies need to include essential offsets to guarantee that foreign procurement will contribute to domestic ability development. Legal support can secure offset obligations and efficiently solve conflicts. “
In the Indian defense ecosystem, a major change in the development of domestic procurement, export growth, and shifting to its impeccation. However, in order to achieve perfect independence, it is necessary to deal with systematic inefficient, promote innovation, and strengthen public and private collaboration. Sustainable efforts not only achieve independence in defense, but also appear as a major global player in weapon trade.
Also, read: GAMECHANGER weapons acquired by India in 2024