The State of India's Military Industry: Challenges and Opportunities

The Indian military industry, while striving for self-reliance and modernization, faces significant challenges that hinder its development. Unlike the military industrial complexes of the US and Western nations, India operates under a framework that combines socialist principles with ongoing globalization. This unique structure, however, brings with it a plethora of issues that impede progress and efficiency.

Current Industrial Landscape

India's defense research and development (RD) are primarily managed by the Defense Research and Development Organization (DRDO), a government agency responsible for developing indigenous defense technologies. In terms of production, India manufactures small arms ammunition and ordnance in government-owned facilities, relying heavily on design inputs from DRDO. However, the majority of the modern weaponry and systems are still imported, a common practice that reflects both the need for advanced technologies and the limitations of domestic capabilities.

Deficiencies in Domestic Production

The Indian defense industry, particularly the small and medium enterprises (MSMEs), suffers from a lack of support and encouragement from the government and higher-ranking military officials. Several incidents highlight the difficulties and inefficiencies within the sector:

Case Study: Kalyani Forge's 155mm Howitzer

Kalyani Forge successfully developed an indigenous 155mm Howitzer, a significant milestone in the domestic production of heavy artillery. However, the Indian Army, due to the infamous Bofors scandal, has not inducted any artillery piece in the last 36 years. Despite this, Kalyani Forge's request for a field test of their artillery was met with resistance and bureaucratic delays. After three years of tireless efforts, the company was forced to send the prototypes to Europe for development trials, spending their own capital and resources. This case raises questions about lethargic governmental procedures and possibly corruption.

Arjun Main Battle Tank (MBT) Controversies

The Arjun MBT, hailed as a magnificent tank, has faced several controversies during its inductance process. In one instance, a deliberate sabotage during the field inductance trials resulted in a mechanical failure, indicating a hidden agenda that prioritizes foreign procurements over indigenous capabilities. Additionally, during field acceptance trials, the defense requirements were sidelined after high-ranking officers intervened, changing the tank's specifications to something akin to a submarine. These irregularities underscore the potential influence of foreign kickbacks and the vested interests of certain military officials.

Arjun vs. T-90 Tank Competition

In a competitive field trial, the Arjun tank outperformed the Russian T-90 in 25 different parameters. Expectations were high that the Indian Army would order more Arjuns. Instead, the Army placed an order for 1,500 T-90 tanks while capping the Arjun order at just 125. This decision highlights the dominance of foreign procurements in the Indian defense industry, despite the superior performance of indigenous products.

Policy and Recommendations

The Defence Industrial Procurement Policy (DIPP) is often scrutinized for its lack of clarity and support for domestic industry. To enhance indigenous production, several policy and procedural changes are necessary:

Creaming Off Foreign Kickbacks: Bureaucrats and high-ranking military officials must be held accountable for policies that favor foreign procurements over domestic capabilities. Support for MSMEs: Greater support and incentives should be provided to small and medium enterprises to foster local manufacturing and innovation. Transparent Procurement Processes: Streamlined and transparent procurement policies can help ensure that only the best local products are selected for field trials and subsequent inductance. Investment in Research and Development: Consistent investment in RD can help India develop advanced defense technologies to compete with global standards.

In conclusion, while India has made progress in indigenous defense production, the industry still faces significant hurdles. Addressing these challenges through policy reforms and support for indigenous industries can lead to a more robust and self-reliant defense sector.