HOW HAVE ‘ATMANIRBHAR BHARAT’ AND ‘MAKE IN INDIA’

INITIATIVES BROUGHT ABOUT A SIGNIFICANT CHANGE TO

BOOST INDIA’S INDIGENOUS DEFENCE PRODUCTION?

BY

MAJOR AVINASH AHRODHIYA

SYNOPSIS

Subject. How have ‘Atmanirbhar Bharat’ and ‘Make in India’ initiatives

brought about a significant change to boost India’s indigenous defence
production?

Topic. Exploring the changes brought about by ‘Atmanirbhar Bharat’ and

‘Make in India’ initiatives in boosting India’s indigenous defence industry.

DS Guide. Lt Col Bardeskar Jeevan B.

Col Mentor. Col YN Gaikwad.

Introduction

1. India is one of the largest arms importers in the world, accounting for
11% of the total arms sales globally. Enhancing the defence technology,
achieving customisation and uniqueness is important for India to develop a
surprise element over its adversaries. However, the ‘Atmanirbhar Bharat’ and
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‘Make in India’ initiatives have been launched to make India self-reliant in the
field of defence manufacturing, with the aim to enhance domestic manufacturing
and making the country a net exporter in this field. These initiatives have been
given a major impetus during planning and procurement of equipment for the
Indian Army, wherein there is an endeavour to support the emerging defence
industry in the country.

2. On 12 May 2020, Prime Minister Narendra Modi publicly used the Hindi
phrase for the first time when he said; "the state of the world today teaches us
that ‘Atma Nirbhar Bharat’ or 'Self-reliant India' is the only path.

3. Several major initiatives including ‘Make in India’ have been launched

during the years to make India self-reliant in the field of defence manufacturing.
The MBT Arjun Mk-1A was handed over to the Indian Army by Prime Minister
on 14 Feb 2021, and Ministry of Defence (MoD) placed an order with Heavy
Vehicles Factory (HVF), Avadi, Chennai to supply 118 Main Battle Tanks
(MBTs) Arjun Mk-1A for Indian Army on September 23, 2021. Induction of LCA
(Tejas), Arudhra and Aslesha Radars, Astra Air to Air missile, Akash Surface to
Air missile system, Advance Light Helicopter and Light Combat Helicopter etc.
systems were added in IAF’s inventory proving IAF’s commitment to the vision
of ‘Atmanirbhar Bharat’.

4. The ‘Atmanirbhar Bharat’ initiative has helped India transform from being
an importer of weapons and defence related equipment to an exporter. India’s
defence export touched record heights and hit a record Rs 14,000 crore – its
highest ever – up from Rs 900 crore in 2014. The defence ministry has revealed
that the issuance of positive indigenisation lists of over 3,700 items including
components/Line Replacement Units for DPSUs and 310 other defence-related
items have been issued as part of the ‘Atmanirbhar Bharat’ initiative.

5. The ‘Make in India’ initiative has also played a significant role in boosting
India’s indigenous defence industry. The initiative aims to make India a global
hub for manufacturing, design, and innovation. The government has taken
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several steps to promote domestic manufacturing in the defence sector. For

instance, it has increased the FDI limit from 49% to 74% under automatic route
for companies seeking new technology collaborations.

6. The government has also set up several defence industrial corridors

across the country to promote domestic manufacturing. These corridors are
aimed at creating an ecosystem for defence manufacturing by providing
infrastructure, research and development facilities, testing facilities, and skilled
manpower.

Statement of the Problem

7. India currently imports most of its defence related products as well as

components. Private sector participation in defence has been limited till recent
times thereby hindering foreign producers to form strategic partnerships with
various Indian businesses. This strategic collaboration is required to enhance
the producers’ exposure to the unexplored defence sector of India and generate
numerous opportunities for the Indian defence sector industries by
strengthening production and upgrading equipment. Accommodative
government rules will help in achieving self-reliance, besides promoting
indigenisation and technology modernisation.

8. The research shall study various defence related aspects of

‘Atmanirbhar Bharat’ and ‘Make in India’ initiatives to include how these
initiatives have brought about a significant change in India’s indigenous
defence production, thereby reducing imports, promoting manufacturing
of defence equipment within the country and also export military
equipment to other countries around the world.
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Objectives of Research

9. The ‘Make in India’ movement has been effective in supplying various

equipment which are being extensively used by the armed forces of India. From
2018 to 2021, the government of India granted Acceptance of Necessity to over
150 proposals worth Rs. 2,47,515 crore (US$ 32.4 billion) under various
categories of capital procurement, which is expected to enhance local
manufacturing as per The Defence Acquisition Procedure (DAP- 2020).
Additionally, from 2018 to January 2022, of the total 191 capital acquisitions
made, almost 121 were inked with Indian suppliers for procuring defence
equipment for the armed forces. The ‘Make in India’ movement will enhance
clarity, trust, expertise, value, and consistency by opening doors to innovation,
besides creating jobs and opportunities to integrate the requisite skills.

10. There is a strategic shift towards self-reliance and indigenous

manufacturing capabilities. The expenditure on defence procurement from
foreign sources has reduced from 46 per cent of the overall expenditure in
2018-19 to 36.7 per cent as of December 2022. India is now successfully able
to manufacture artillery guns, Brahmos missiles, Pinaka rocket systems, radars,
simulators, armoured vehicles and aircraft such as the Dornier-228, Tejas etc.

11. Thus, to understand how ‘Atmanirbhar Bharat’ and ‘Make in India’

initiatives have significantly boosted India’s indigenous defence production,
specific objectives of this study are as mentioned below :-

(a) To understand India’s historical dependence on import of defence

equipment and its drawbacks.

(b) To understand ‘Atmanirbhar Bharat’ and ‘Make in India’ initiatives

in detail, their key features and government’s policies and initiatives
under these programmes.
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(c) To analyse how these initiatives have made an impact on

indigenous defence production.

(d) To analyse certain milestones already achieved and perceived

challenges of these initiatives.

(e) To analyse the future of India’s indigenous defence production

and potential of export of defence products.

(f) To understand the long-term vision for achieving self-reliance in

defence and explore emerging technologies and strategic partnerships
that can further bolster India’s defence capabilities.

Hypothesis

12. The hypothesis is ‘‘Atmanirbhar Bharat’ and ‘Make in India’ initiatives

have significantly boosted India’s indigenous defence production’.

Research Methodology and Data Collection

13. The research will be a combination of analytical exploration of

literature and study of various indigenous defence industries – both
government as well as private as per relevant material from open domain,
various books and magazines published on the subject and also through
literature and articles available online. It will also comprise study of various
government policy changes that have attracted foreign companies to start
manufacturing in India.
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Chapterisation

14. The dissertation is planned to be organised in five chapters. Issues for

discussion and analysis in each chapter are briefly summarised below:-

(a) Chapter I: Introduction. This chapter will explain the necessity

of undertaking the study to include the broad topic, statement of problem,
working out of hypothesis, literature review, research methodology and
the organisation of the dissertation.

(b) Chapter II: Background. This chapter will discuss about India’s
defence requirements after independence, key military equipment
suppliers to India, certain limiting factors and problem areas and current
state of India’s government defence public sector units.

(c) Chapter III: ‘Atmanirbhar Bharat’ and ‘Make in India’. This

chapter will discuss about ‘Atmanirbhar Bharat’ and ‘Make in India’
initiatives in detail, their key features and government’s policies and
initiatives under these programmes. It will also fucus on government’s
approach to defence equipment related issues and steps already taken.

(d) Chapter IV: The Big Impact. This chapter will analyse how
these initiatives have made an impact on indigenous defence production,
certain milestones already achieved and perceived challenges of these
initiatives. Also, investments made by foreign defence industries in India,
the future of India’s indigenous defence production and its potential of
exporting these defence products will also be highlighted in this chapter.

(e) Chapter V: Way Ahead. This chapter would highlight the

potential of India to achieve self-reliance in defence production and few
recommendations to achieve this feat in the coming future.