Increasing India's International Presence via Strategic Defense Exports

Defence News: India's defence exports cross Rs 6,000 crore in FY24, shows  DDP data | India News - Business Standard

Defence exports are an important exercise of national prerogative and a supplement to a government's foreign policy. They involve the transfer of lethal weapons and warlike equipment between nations under specified circumstances. This policy's effectiveness depends on the country's defense industry's skill and its defense technology, which are inextricably linked. Over the last ten years, India's defense export strategy has concentrated on war-related products within a larger defense inventory, especially from the viewpoint of the armed forces of the country.

Importance of Exports for Defense
Defense exports are carried out by countries with strong defense industries to further a variety of statecraft purposes, such as commercial gain, military alliances, and political aims. These exports are controlled by cooperative and domestic production requirements as well as those of politically allied state and non-state actors. Among the reasons behind defense exports are:

  • Creating Military and Political Partnerships: The US, EU, Russia, and UK are a few examples of countries that export to fortify their relationships.
  • Obtaining Military and Political Dependencies: Exports are a means by which nations such as China, Russia, Turkey, and Iran can extend their strategic influence.
  • Commercial enterprise: Countries that export to finance jobs, defense research, and technological advancements include France, Sweden, and Italy.

Defense exports, nonetheless, may have unforeseen repercussions. The weaponization of West Asian outlaws by the Western Powers is one example of such a trap; during the Chinese Civil War, for example, American weaponry turned against ally Republicans.

India's Path of Defense Exports

Era Following Independence

India's defense sector was small at the time of independence, mainly serving to meet post-independence requirements and India's security commitments to Nepal and Bhutan. Along with modest arms and equipment transfers to neighboring nations including Afghanistan, Sri Lanka, the Maldives, and Myanmar, India also engaged in larger defense diplomacy as opposed to commercial exports.

The emphasis on "peace and friendliness" in India's early national security policy caused a systematic confusion about the role of military force in nation-building. As a result, the development of the defense industry was stymied, resulting in an antiquated military inventory and a state-owned defense sector devoid of industrial cooperation, global trade rivalry, or customer demand.

Wars after 1962 and 1965
India's defense sector remained mostly stagnant despite minor advancements following the Sino-Indian War (1962) and the Indo-Pakistan War (1965), mostly due to financial constraints and the country's "no defense exports" policy. This kept the country stuck in a state of self-imposed debility by impeding the industry's modernization and the growth of export needs.

Transition to Pragmatism
The situation began to change post-1990, especially after the 2014 government recognized the harsh realities of regional belligerence. The role of geopolitics in arms trade was appreciated, leading to a boost in defence production and an opening up of defence export policies to strengthen international diplomacy and generate funds for defence modernization.

The market for defense exports was valued at USD 750 billion globally in 2022 and is expected to reach USD 1.38 trillion by 2030, with the US, Russia, France, China, and Germany being the main exporters.

Current Statements of Policy
India is taking several significant steps to develop a strong defense export policy, including:

  • Innovation for Defense Excellence (IDEX): Encourages technological innovation in defense.
  • The committee that oversees defense exports coordinates and advances defense exports.
  • A list consisting of 411 important military hardware items, the Positive Indigenization List aims to lessen reliance on imports.

In line with the 'Make In India' campaign, the government's Defence Production & Export Promotion Policy (DPEPP) seeks to advance defense R&D and encourage independence.

assurances of a recovery in defense exports
It is anticipated that the current policy changes will result in large gains:

  • Technological and Industrial Uplift: Harnessing indigenous IT, MSME, and start-up regimes.
  • Substitution of Defense Imports: Creating money for military modernization and balancing the international commerce.
  • Developing military interoperability with strategic partners and joining international supply chains for defense industry are examples of strategic interdependencies.
  • Increasing Diplomatic Influence: Expanding the Indo-Pacific Area of Influence.

By 2025, the government wants defense exports to reach Rs 35,000 crore, and by 2028–2029, it wants to achieve Rs 50,000 crore.

Defense Exports' Current Situation
Presently, India exports defense goods to more than 75 nations, including the US, UK, France, Armenia, Italy, Russia, Maldives, Mauritius, Seychelles, Sri Lanka, Australia, Japan, Israel, Brazil, UAE, Egypt, Indonesia, and Thailand. Mid-technology ammo, missiles, rockets, torpedoes, artillery guns, drones, electronics, armored vehicles, patrol boats, radars, protective gear, and surveillance systems are among the things that are exported.

India is one of the top 25 countries in the world for exporting defense goods; the private sector has been the main driver of this growth, with exports rising from Rs 686 crores in 2013 to approximately Rs 16,000 crores in 2023.

Gazing Forward
To significantly increase defense exports, the incoming government must build on its predecessors' successes. Important requirements consist of:

  • Simplifying Regulations: Regarding commerce and industry for defense.
  • Collaboration and Funding: Boosting defence and academia sectors for research and innovation.
  • Resolving Infrastructural Shortfalls: Avoiding Setbacks in Vital Projects.
  • Model of Strategic Partnerships: Establishing Defense Production and Exports as an Institution.

In summary

With plans to increase defense exports to Rs 50,000 crores and produce Rs 3 lakh crores of defense annually, India is poised to usher in a new age. The main accomplishment of the governments in power since 2014 has been to break with previous foreign policy reticence and forge new routes towards an India that is sovereign, independent, and well-respected around the world.

To maintain this success, an all-encompassing strategy that combines defense industrialization, technological breakthroughs, and sensible import and export policy with strong defense diplomacy is required.