Defence Production Unleashing The Potential For ‘Make In India'

Four years have passed since the ‘Make in India’ idea was initiated. However, in the defence sector, it has made hardly any impact, thanks to the absence of a policy framework, unsystematic efforts to promote domestic production and budgetary constraints. But then all is not lost. At least four developments hold a lot of promise for the defence industry, argues AMIT COWSHISH

- Amit Cowshish

Speaking from the ramparts of the historic Red Fort in Delhi on August 15, 2014, the Prime Minister exhorted entrepreneurs to ‘Make in India’ and transform the country into a manufacturing hub. It made eminent sense. The manufacturing sector has a vast untapped potential which needs be exploited to spur economic growth.

Of all the sectors subsequently identified by the government to push the ‘Make in India’ initiative, defence manufacturing must rank among the top few. The armed forces require a wide variety of equipment, platforms, weapon systems, ammunition, and many other products, not all of which are presently made in India. This leaves a void which can be filled through domestic manufacturing.

Four years down the line, it is fair to ask whether the Prime Minister’s call has led to a surge in defence manufacturing and, if so, whether it is directly attributable to the policy initiatives taken by the Ministry of Defence (MoD) to promote ‘Make in India’ in defence.

According to a March 2017 report of the Parliamentary Standing Committee on Defence (SCoD), MoD spent ₹53,767.23 crore on procurement from the Indian vendors, which is marginally less than ₹55,014.27 crore spent in 2013-14. This does not indicate any surge in defence manufacturing but this stagnation could be on account budgetary constraints as much as stagnation in defence manufacturing. In either case, however, it indicates limitations of whatever measures have been taken by the MoD to promote ‘Make in India’ in defence.