India’s Aerospace & Defence Manufacturing: Vision of 'Atmanirbhar Bharat’

Introduction

India is a peace-loving country and its policy not to start a war against any country is remarkable and appreciable but at the same time being surrounded by hostile neighbours increases the importance of a strong and efficient defence system, from land, air to sea. India is the third largest military spender after the US and China with almost 2% of its GDP.

The Defence Budget of India has seen a consistent and notable increase over the past few financial years. Almost 70 billion US dollar market, India is one of the most sought-after markets for international as well as local companies. With the Atamnirbhar Bharat initiative Indian defence market is notably the most sought-after market for Indian companies too. By creating a robust ecosystem, ease of doing business, transparency and supportive government policy increase the confidence of the domestic defence industry.

Results of these efforts have started yielding results too, with more and more domestic companies venturing into defence manufacturing, research and development sector, creating job opportunities, Dedicated defence industrial corridors have been set to increase the defence manufacturing and business environment.

To promote export FDI in the defence sector has been increased to 74%. Ministry of Defence has set up a target to achieve $26 billion in aerospace and defence manufacturing by 2025, 606 industrial licenses have been issued to 396 companies. Apart from other initiatives Indian government has identified two core focus areas Defence and Aero Space.

Defence and Aerospace sectors to be two pillars for making India 'Atmanirbhar', says PM Modi,? This blog post aims to explore the current state of India's aerospace and domestic defence manufacturing sector, backed by factual data points. Here are some compelling facts and current data showcasing India's progress in this critical sector:

1. Growth and Potential

India's aerospace and defence manufacturing sector has experienced significant growth in recent years. According to SIPRI (Stockholm International Peace Research Institute), India ranked as the 3rd largest military spender globally in 2019.

India's defence budget has been steadily increasing over the years, reflecting the nation's commitment to strengthening its security infrastructure. As of the latest available data, India's defence budget for the fiscal year 2023-2024 stands at approximately USD 76.8 billion, making it one of the largest defence budgets globally. Ministry of? Defence has set a target of achieving a turnover of INR 1.75 lakh crore in aerospace and defence Manufacturing by means of 2025, which incorporates exports of INR 35,000 crore.

The defence industry has witnessed a surge in private sector participation, with numerous indigenous companies emerging as major players. These companies are investing in research

?and development, creating job opportunities, and supporting the government's aspiration of building a robust defence manufacturing ecosystem. India's aerospace and defence sector has witnessed significant growth, with a market size projected to reach $70 billion by 2030, as per reports by industry experts.

2. Indigenous Defence Projects

Under the 'Make in India' initiative, the Indian government has been actively promoting indigenous defence projects. Several key initiatives are being pursued to achieve self-reliance in the sector:

A . Defence Procurement Procedure (DPP), and the recently announced Defence Acquisition Procedure (DAP) 2020, aimed at fostering indigenous manufacturing capabilities and reducing dependency on imports.

B. Light Combat Aircraft (LCA) Tejas: The LCA Tejas is India's first indigenous supersonic fighter aircraft, developed by Hindustan Aeronautics Limited (HAL). The aircraft has received important orders from the Indian Air Force, demonstrating confidence in indigenous defence manufacturing capabilities.

C. Advanced Medium Combat Aircraft (AMCA): The AMCA is a fifth-generation fighter aircraft being developed jointly by the Aeronautical Development Agency (ADA) and HAL. It aims to meet the Indian Air Force's requirements and position India as a global player in advanced fighter aircraft manufacturing.?

3. Technology Collaboration

International Partnerships:

Russia, France, Israel, the United States, and the United Kingdom have been among the top countries from which India has imported arms over the past two decades. These countries have been key suppliers of various defence equipment, including aircraft, helicopters, missiles, submarines, artillery systems, and other defence technologies, to India. The imports from these nations have contributed significantly to India's defence modernization efforts and operational capabilities. India has established strategic partnerships with various countries, including the United States, Russia, France, Israel, and several European nations, for technology collaboration in aerospace and defence. These partnerships involve joint research and development projects

Russia, France, Israel, the United States, and the United Kingdom have been among the top countries from which India has imported arms over the past two decades. These countries have been key suppliers of various defence equipment, including aircraft, helicopters, missiles, submarines, artillery systems, and other defence technologies, to India. The imports from these nations have contributed significantly to India's defence modernization efforts and operational capabilities. India has established strategic partnerships with various countries, including the United States, Russia, France, Israel, and several European nations, for technology collaboration in aerospace and defence. These partnerships involve joint research and development projects

Russia, France, Israel, the United States, and the United Kingdom have been among the top countries from which India has imported arms over the past two decades. These countries have been key suppliers of various defence equipment, including aircraft, helicopters, missiles, submarines, artillery systems, and other defence technologies, to India. The imports from these nations have contributed significantly to India's defence modernization efforts and operational capabilities. India has established strategic partnerships with various countries, including the United States, Russia, France, Israel, and several European nations, for technology collaboration in aerospace and defence. These partnerships involve joint research and development projects

Transfer of Advanced Technologies-

Technology collaboration has facilitated the transfer of advanced defence technologies to India, enabling the indigenous development and production of critical defence systems such as aircraft, missiles, radars, and electronic warfare systems. Collaborations with countries like Russia and Israel have led to the acquisition of state-of-the-art defence technologies.

Joint Ventures and Co-development Programs-

Indian defence organizations, along with international partners, have initiated joint ventures and co-development programs to design, develop, and manufacture defence equipment tailored to India's specific requirements. Examples include the BrahMos Aerospace joint venture between India and Russia for the development of the supersonic BrahMos missile and the Indo-French Rafale fighter aircraft program.

Research and Development Collaboration-

Collaboration in research and development (R&D) is a key aspect of technology collaboration in the Indian aerospace and defence sector. Indian defence research institutions like the Defence Research and Development Organisation (DRDO) collaborate with foreign partners to leverage expertise, share resources, and accelerate technological advancements in areas such as aeronautics, propulsion, avionics, and materials science.

Drones Technology-

Drones play a crucial role in the defence aerospace sector, Drones are extensively used for surveillance and reconnaissance missions, providing real-time intelligence, surveillance, and reconnaissance (ISR) capabilities over hostile or inaccessible areas, with advanced sensors, cameras, and target acquisition systems can identify and track targets on the ground or in the air with precision.

drones play a multifaceted role in the defence aerospace sector, offering versatile capabilities that enhance military operations, improve situational awareness, and provide critical support to ground, air, and naval forces in a variety of operational scenarios.

Private Sector Participation-

Technology collaboration extends to the private sector, with Indian defence companies partnering with global aerospace and defence majors for joint ventures, technology transfer agreements, and co-development programs. This collaboration has enabled the private sector to acquire advanced manufacturing capabilities and contribute to indigenous defence production.

Defence Industry:

The Indian industry comprises a mix of public sector undertakings (PSUs), private companies, and research institutions. Major defence companies like Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), and Bharat Dynamics Limited (BDL) play a crucial role in indigenous defence production and technology development.

In India, the largest company in the defence sector is Hindustan Aeronautics Limited (HAL). HAL is a state-owned aerospace and defence corporation engaged in the design, development, manufacture, and upkeep of planes, helicopters,?avionics, and related systems. It is considered one of Asia's largest aerospace companies and plays a pivotal role in India's defence industry, contributing to various indigenous defence programs and projects such as the Tejas Light Combat Aircraft (LCA), Advanced Light Helicopter (ALH), and Dhruv Advanced Light Helicopter, Bharat Electronics Limited (BEL), and Bharat Dynamics Limited (BDL) play a crucial role in indigenous defence production and technology development. Tata Advanced Systems Limited (TASL) is a subsidiary of Tata Sons, one of India's largest conglomerates, specializing in aerospace and defence manufacturing. Tata Boeing Aerospace Delivers 250 AH-sixty-four Apache Fuselages, Manufactured in India. TASL is worried about the manufacturing of plane additives, aerostructures, unmanned aerial systems (UAS), and defence electronics.

Larsen & Toubro (L&T) is a multinational conglomerate with a significant presence in the defence sector. It is involved in the manufacture of defence equipment, including artillery systems, naval vessels, armoured vehicles, and missile systems.

Mahindra Defence Systems is part of the Mahindra Group and is engaged in the manufacture of defence vehicles, aerospace components, naval systems, and defence electronics. Dynamic Technologies is a leading aerospace and defence company specializing in the manufacture of aerospace components, assemblies, and systems.

These companies, along with others in the Indian defence industry, play a crucial role in supporting the Indian Armed Forces, advancing indigenous defence capabilities, and contributing to the country's self-reliance in defence production.

Export and Import ?of defence equipment by India-

Russia, France, Israel, the United States, and the United Kingdom have been among the top countries from which India has imported arms over the past two decades. These countries have been key suppliers of various defence equipment, including aircraft, helicopters, missiles, submarines, artillery systems, and other defence technologies, to India. The imports from these nations have contributed significantly to India's defence modernization efforts and operational capabilities.

India has been both an importer and exporter of defence equipment. In recent years, there has been a focus on boosting indigenous defence manufacturing capabilities, resulting in a decrease in the reliance on imports [1]. ?

The government's initiatives such as 'Make in India' and the vision of 'Atmanirbhar' Bharat (self-reliant India) aim to enhance domestic manufacturing capabilities and reduce dependence on imports [1]. This will not only bolster India's defence sector but also contribute to its economy and job creation.

Conclusion:

The Government’s Atma Nirbhar Bharat initiative has centred on India’s defence zone, which aims to sell indigenous production and reduce the country’s dependence on imports. India's aero defence manufacturing sector is witnessing remarkable growth, driven by the vision of 'Atmanirbhar' Bharat. With a focus on indigenous defence projects, strategic partnerships, and advancements in space exploration, India is steadily progressing towards self-reliance. The demand for cutting-edge defence equipment, combined with government initiatives supporting manufacturing capabilities, presents immense opportunities for India to become a global aerospace and defence manufacturing hub.