SIPRI REPORT
The indigenization of defense refers to the process by which a country seeks to develop its own domestic defense industry and capabilities, rather than relying extensively on foreign suppliers for its defense needs. This often involves initiatives such as promoting domestic defense research and development, fostering partnerships between government, academia, and industry, and investing in the production of defense equipment and technologies within the country.
Indigenization is often pursued for several reasons:
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National Security: By developing indigenous defense capabilities, a country can reduce its dependence on foreign suppliers, thus enhancing its national security and sovereignty.
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Economic Development: Building a domestic defense industry can stimulate economic growth by creating jobs, fostering technological innovation, and generating export opportunities.
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Strategic Autonomy: Indigenization allows a country to have greater control over its defense procurement and technology, reducing vulnerabilities to disruptions in the global supply chain or changes in international relations.
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Cost Efficiency: While there may be initial costs associated with developing indigenous capabilities, in the long run, it can be more cost-effective than relying solely on imports, as it reduces reliance on expensive foreign equipment and technologies.
Countries pursue indigenization strategies to varying degrees based on their security needs, technological capabilities, and economic resources. It often requires significant investments in research and development, infrastructure, and human capital, as well as long-term planning and sustained commitment from government and industry stakeholders
4. Key Takeaways from SIPRI report
- The latest data showed that the United States, China and Russia remained the top three military spenders globally followed by India and Saudi Arabia.
- According to the report, Indian spending was up by 4.2 per cent from 2022 and by 44 per cent from 2014.
- The capital outlays to fund military procurement remained relatively stable at around 22 per cent of the budget in 2023, of which 75 per cent went towards equipment produced domestically.
- As per the report the five biggest spenders in 2023 –the United States, China, Russia, India and Saudi Arabia—together accounted for 61 per cent of world military spending. The US spending was $916 billion and the Chinese spending was an estimated $296 billion. Russia’s military spending grew by 24 per cent in 2023 to an estimated $109 billion.
- As per the report, Ukraine became the eighth largest military spender in 2023, increasing its spending by 51%
- India remains the world's foremost importer of arms, representing 9.8% of global arms imports from 2019 to 2023. This marks a 4.7% increase compared to the period from 2014 to 2018, attributed in part to urgent procurements made in response to tensions with China.
- Russia, France, Israel, the United States, and the United Kingdom are India's primary arms suppliers. During 2019-2023, Russia accounted for 36% of India's defense imports, followed by France at 33%, the United States at 13%, and Israel at 9%.
- Nevertheless, India aims to diminish its reliance on Russian weaponry and is unlikely to pursue further acquisitions from Russia. The government is actively promoting the indigenization of military equipment.
- In 2022, it annulled the import of various significant defense platforms and gear, including Coast Guard helicopters, all-terrain vehicles (ATVs), and short-range missiles. Furthermore, the defense ministry has outlined plans to progressively halt the import of specific items from December 2023 to December 2028
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Which countries are the top arms suppliers to India?
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What is the new FDI policy in the defense sector?
Foreign Direct Investment (FDI) limit in defence sector was enhanced in 2020 up to 74% through the Automatic Route for companies seeking new defence industrial license, and up to 100% through the Government Route wherever it is likely to result in access to modern technology
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The Innovations for Defence Excellence (iDEX) initiative is a flagship program launched by the Government of India to foster innovation and technology development in the defense sector. The primary objective of iDEX is to create an ecosystem that promotes innovation, encourages startups, and facilitates collaboration between the Indian defense industry, academia, and startups to address defense-related challenges.
Key features of the iDEX initiative include:
- iDEX organizes open innovation challenges where defense problems are shared with the public, including startups, academia, and individual innovators. Participants are invited to propose innovative solutions to these challenges
- Selected startups and innovators receive funding, mentorship, and other forms of support to develop and commercialize their innovative solutions for defense applications.
- iDEX provides platforms for collaboration and networking between stakeholders in the defense innovation ecosystem, including defense organizations, startups, research institutions, and industry players
- The initiative supports product development and prototyping of innovative defense technologies, helping to bridge the gap between research and commercialization.
- iDEX facilitates market access for innovative defense products and technologies developed by startups and other participants, connecting them with potential buyers within the defense establishment
The Government of India has introduced several initiatives to promote the indigenization of technology in the defense sector.
Some of the key initiatives include:
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Make in India: Make in India is a flagship initiative aimed at promoting domestic manufacturing across various sectors, including defense. The initiative encourages domestic production, collaboration, and investment in the defense industry to reduce dependence on imports and enhance self-reliance.
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Innovations for Defence Excellence (iDEX): As mentioned earlier, iDEX is an initiative focused on fostering innovation and technology development in the defense sector. It encourages collaboration between the defense industry, startups, academia, and other stakeholders to address defense challenges through innovative solutions.
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Defence Procurement Procedure (DPP): The Defence Procurement Procedure outlines the guidelines and procedures for defense procurement in India. Recent iterations of the DPP have emphasized the importance of promoting indigenous manufacturing and technology development, including provisions for preference to domestically designed, developed, and manufactured products.
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Technology Development Fund (TDF): The Technology Development Fund is aimed at supporting research and development projects in defense technology by providing financial assistance to public and private sector entities, including industry, academia, and research institutions.
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Defence Research and Development Organisation (DRDO): The DRDO is India's primary agency for defense research and development. It plays a crucial role in indigenous technology development, designing and developing a wide range of defense systems and technologies for the Indian Armed Forces.
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For Prelims: Current events of national and international importance
For Mains: GS-II, GS-III: GS-II, GS-III: Government policies and interventions for development in various sectors, indigenization of technology
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Previous Year Questions
1.Which one of the following is the best description of ‘INS Astradharini’, that was in the news recently? (UPSC CSE 2016) (a) Amphibious warfare ship (b) Nuclear-powered submarine (c) Torpedo launch and recovery vessel (d) Nuclear-powered aircraft car Answer (c)
INS Astradharini is a Torpedo Launch and Recovery Vessel (TLRV). It is a specialized naval vessel designed for testing and evaluation of torpedoes. TLRVs are equipped with facilities for launching, recovering, and handling torpedoes during testing and training exercises. They play a crucial role in the development and validation of torpedo systems for naval warfare
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