The Next Big Thing

Defence manufacturing could really be the next big thing for the Indian economy – spurring growth and creating jobs – if only private players had a level playing field with DPSUs.

- Manish Kumar Jha

THE PULWAMA ATTACK swung the strobe lights back on national security. And defence is all about capability — machines, hardware, and software. A report laid in Parliament by the Comptroller and Auditor General of India in 2017 had pointed out that the stock of 61 types of critical ammunition needed to fight a war by the Indian Army would last only ten days. India continues to purchase 70 percent of its military hardware from the global market (See graph: The 10 Largest Arms Importers).

defence capability can hardly be developed through defence procurements alone. Apart from being unaffordable, the dependence on imports is not always a reliable option at critical junctures. The Make In India initiative in defence manufacturing is, therefore, more than a programme — it is imperative. As analyst Maj. Gen. S. B. Asthana points out, “This has to be a top priority of any future government, hence political parties need to have it on top of their political agenda and should include it in their manifesto to convince the countrymen about their concern for safety and security of the country and the population.”

A report by the Federation of Indian Chambers of Commerce and Industry (Ficci) and financial services firm Centrum Capital says the country’s defence spending is expected to swell to $620 billion (Rs 38 lakh crore) by 2022. Even sub-areas in the aerospace and defence (A & D) electronics space could throw up opportunities for $72 billion worth of projects over the next ten years, according to a Nasscom study. Prime Minister Narendra Modi has announced a $250 billion military modernization plan.