Atma Nirbhar Bharat, which translates to ‘self-reliant India is a phrase the Prime Minister of India has popularised about the country’s economic development plans. The phrase is an overarching concept for the Government’s plans for India to play a more significant role in the global economy and become more efficient, competitive and resilient.
The country’s former Planning Commission, in multiple five-year plans between 1947 and 2014, laid out the framework for development. Based on these plans, India has been enacting policies and building institutions that promote self-reliance since its Independence.
The country’s economic progress lay in both the Public and Private Sector each with its own set of challenges and ethos. Private companies were more focused on fast-moving commercial goods. They became leaders in multiple industries to include, FMCG, automotive, IT, financial services and banking, pharmaceuticals and biotechnology. However, the defence requirements remained mainly in control of the government through the Ordinance Factory Board, DPSU’s and of course through imports. The private sector in India remained a marginal player in this sector.
Defence Sector
Until the recent past, India had been importing seventy per cent of its defence equipment, which is a significant burden on India’s foreign exchange and continued dependency on foreign Original Equipment Manufacturers (OEMs).
Indian Armed Forces are one of the most significant Armed Forces in the world, and the country spends a substantial amount on Defence & Aerospace equipment. As a result, it is one of the largest importers of arms, with a share of 9.5% of world imports between 2014-18. The Union Budget 2020-21 has also allocated around $47.47 Bn (excluding Defence pension) for Defence. One-third of the budget is for capital expenditure.
What should be addressed is the design and development capabilities, working on raw materials, and adapting and adopting new technologies to make our platforms lighter, stronger and more durable. The manufacturing, welding and finishing of the platforms need to meet the challenges of the modern-day battlefield.
India is open to FDI entering the Indian Defence market. It provides for more than 50% of Defence equipment procured; it also focuses on developing Indian OEMs by encouraging collaborations like joint ventures, partnerships and offsets.
With the above objective, two Defence Industrial Corridors would have been developed in Uttar Pradesh and Tamil Nadu. While the Defence Procurement Policy and Defence Procurement Manual are revised periodically. However, the more attempts are made to simplify the procedure, the more it remains, complex.
What is Atma Nirbharta or Self Reliance?
Currently the defence manufacturing in India is on built to print drawings, on the materials specified by the OEMs and the processes and procedures laid down. In some cases, white labelling of components and assemblies is being done to come under the Make in India provisions.
What should be addressed is the design and development capabilities, working on raw materials, and adapting and adopting new technologies to make our platforms lighter, stronger and more durable. The manufacturing, welding and finishing of the platforms need to meet the challenges of the modern-day battlefield.
In an attempt to get the private sector participation in the Defence Sector, the Government has gone out of its way to make it an attractive sector. Defence Acquisition Procedure (DAP) 2020 has provisions for Make in India and Leasing of platforms when necessary. A snapshot is given below.
A detailed study of the DAP is essential to understand the finer nuances
The provision of the ‘Make’ category of capital acquisition in the Defence Procurement Procedure (DPP) is a vital pillar for realizing the vision behind the ‘Make in India’ initiative of the Government.
By fostering indigenous capabilities through the design & development of required defence equipment/products/systems or upgrades/ sub-systems/components /parts by both public and private sector industries/organizations in a faster time frame.
Make Procedure
Make-I (Government Funded): Projects under the ‘Make-I’ sub-category will involve Government funding of 90%, released in a phased manner and based on the progress of the scheme, as per terms agreed between MoD and the vendor.
Make-II (Industry Funded): Projects under the ‘Make-II’ category involve prototype development of equipment/ system/ platform or their upgrades or their sub-systems/ sub-assembly/assemblies/ components, primarily for import substitution/innovative solutions, for which no Government funding will be provided for prototype development purposes.
In Feb 2018, Government notified a separate, simplified procedure for the sub-category ‘Make-II’, which has many industry-friendly provisions.
It is well worth going into the finer points of how to make this a success. In the long run, a few rudimentary issues get glossed over, and the efforts remain a glib talk rather than an action plan.
Progressive steps
In the past several years, the Army HQ set up an Army Design Bureau, which interacted with the academia, industry and industry forums, start-ups and DRDO to find solutions to the problem statements of the Indian Defence Services. This effort “kick started” the indigenous technology design and development and, ably supported by the defence services, has now caught momentum. DRDO reinvented processes and engaged with young technocrats of the IIT’s, now making a mark in the start-up space.
What is required is to focus on issues that the Services would have to contemplate to fight and win future battles. The six areas the Army must be prepared for in 2030: –
· The ability to “see” the battlefield at all times.
· Coordination at greater speeds.
· Win the fires fight.
· Hiding on the battlefield.
· Talk often and quickly.
· Logistics.
Some of the projects that need to is undertaken on PRIORITY are: –
- Simulation systems at the Strategic and Tactical levels.
- Tri-Services Cloud.
- Drone Systems with a focus on drone-based AWACS for the future.
- Anti-Drone Systems.
- Cyber Security related Make in India projects.
- Unmanned Maritime Vehicles
- Unmanned Land Systems to include Tanks, Infantry Combat Vehicles and Artillery (Self Propelled).
While technology is essential to win wars, it should not be forgotten that boots on the ground as cohesive combat groups need to train hard, to fight and win wars of the future.
