In a significant move towards bolstering its self-reliance in the defense manufacturing sector, India has granted preliminary approval for a substantial ₹45,000 crore investment in military hardware. This comprehensive investment package encompasses a diverse range of essential equipment, including fighter planes, missiles, multipurpose vehicles, surveillance systems, and survey ships. The primary aim is to modernize and strengthen India's armed forces.
The Defense Acquisition Council (DAC), responsible for initiating purchases based on the armed forces' requirements, has given the green light to acquisition proposals falling under two crucial categories for indigenization: Buy (Indian-IDDM) and Buy (Indian). IDDM stands for "indigenously designed, developed, and manufactured," emphasizing the country's commitment to domestic production.
What sets this initiative apart is the intention to source these weapons and systems from Indian vendors, providing a significant boost to the domestic defense industry. India has allocated a substantial portion of its defense budget for the procurement of locally made military hardware, with around ₹1 lakh crore earmarked in this year's budget alone.
Among the notable proposals cleared by the DAC is the purchase of 12 Sukhoi-30 MKI fighter jets and associated equipment worth ₹11,000 crore from state-run planemaker Hindustan Aeronautics Limited (HAL). These fighters will replace the 12 Su-30 MKIs lost in accidents, underlining India's commitment to maintaining a robust air defense capability.
Additionally, the council has approved the acquisition of Dhruvastra short-range air-to-surface missiles for advanced light helicopters (Mk-IV) and integrated surveillance and targeting systems to cater to the mechanized forces' requirements. Furthermore, the plan includes next-generation survey vessels and avionics upgrades for Dornier aircraft.
The inclusion of light-armored multipurpose vehicles and integrated surveillance and targeting systems in the investment package aims to enhance the protection, mobility, attack capability, and survivability of the mechanized forces. Swift mobilization and deployment of artillery guns and radars through high mobility towing vehicles are also part of the approved projects.
To encourage indigenous content, the Buy (Indian-IDDM) category mandates a minimum of 50% indigenous content based on the cost of the base contract price. Defense Minister Rajnath Singh has called for even higher indigenous content, suggesting a minimum of 60-65%. He has urged key stakeholders to collaborate with the local industry to achieve this goal.
The Buy (Indian) category, on the other hand, allows for the acquisition of weapons and systems with a 60% indigenous content on the cost basis of the base contract price, even if they weren't designed and developed indigenously.
India's pursuit of self-reliance in defense has been ongoing for several years, marked by the creation of a separate budget for locally made military hardware, phased import bans, increased foreign direct investment, and efforts to improve the ease of doing business in the defense sector. The recent positive indigenization lists and import bans have furthered this goal, promoting the development and production of a wide range of defense equipment within the country.
With these measures and investments, India is well on its way to achieving its ambitious target of a ₹1,75,000 crore turnover in defense manufacturing by 2024-25. These initiatives not only strengthen India's defense capabilities but also boost its domestic defense industry, paving the way for self-reliance in this critical sector.
