{"id":31593,"date":"2024-10-30T18:08:01","date_gmt":"2024-10-30T12:38:01","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=31593"},"modified":"2025-07-12T18:18:06","modified_gmt":"2025-07-12T12:48:06","slug":"impact-of-atma-nirbhar-bharat-initiative-on-indias-defence-sector","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/30-10-2024\/impact-of-atma-nirbhar-bharat-initiative-on-indias-defence-sector","title":{"rendered":"Impact of Atma Nirbhar Bharat Initiative on India\u2019s Defence Sector"},"content":{"rendered":"\n

Syllabus: GS3\/ Defence<\/strong><\/p>\n\n\n\n

Context<\/strong><\/h2>\n\n\n\n
    \n
  • The Atma Nirbhar Bharat initiative has transformed India\u2019s defense sector, with a surge in domestic defense production and exports.<\/li>\n<\/ul>\n\n\n\n

    Defense sector of India<\/strong><\/h2>\n\n\n\n
      \n
    • According to the Defence Ministry, the value of defense production in India has gone up to \u20b91,26,887 crore<\/strong> in FY 2023-24<\/strong>, reflecting a growth of 16.7%<\/strong> over the defense production of FY 2022-23.\n
        \n
      • Of the total value of production in 2023-24<\/strong>, about 79.2%<\/strong> has been contributed by the Public Sector and 20.8% <\/strong>by the private sector.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
      • India\u2019s defense budget<\/strong> of US$ 74.7 billion<\/strong> ranked fourth highest globally in 2024. <\/li>\n\n\n\n
      • Defense exports<\/strong> was \u20b921,083 crore<\/strong> in FY 2023-24,<\/strong> reflecting a growth of 32.5%<\/strong> over the last fiscal when the figure was \u20b915,920 crore.<\/strong>\n
          \n
        • India has set a target of US$ 6.02 billion<\/strong> worth of annual defense exports by 2028-29.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n
        • India has developed major defense platforms <\/strong>such as the Dhanush Artillery Gun System, Advanced Towed Artillery Gun System (ATAGS), Main Battle Tank Arjun, Light Combat Aircraft Tejas, and submarines etc.<\/li>\n<\/ul>\n\n\n\n

          Advantages of growth in defense production<\/strong><\/h2>\n\n\n\n
            \n
          • Self-defense: <\/strong>The presence of hostile neighbors like China and Pakistan makes it necessary for India to boost its self-defense and preparedness.<\/li>\n\n\n\n
          • Strategic advantage: <\/strong>Self-reliance will make India\u2019s geopolitical stance strategically stronger as a net security provider.<\/li>\n\n\n\n
          • Technological advancement:<\/strong> Advancement in the defense technology sector will automatically boost other industries hence catapulting the economy further ahead.<\/li>\n\n\n\n
          • Economic drain: <\/strong>India spends around 3% of GDP on defense and 60% of that is spent on imports. This leads to an immense economic drain.<\/li>\n\n\n\n
          • Employment:<\/strong> Defence manufacturing will need the support of numerous other industries which generate employment opportunities.<\/li>\n<\/ul>\n\n\n\n

            Concerns<\/strong><\/h2>\n\n\n\n
              \n
            • Narrow Private Participation:<\/strong> Private sector participation in the defense sector is constrained by the lack of a conducive financial framework, that means our defense production is unable to benefit from modern design, innovation, and product development.<\/li>\n\n\n\n
            • Lack of Critical Technology: <\/strong>Lack of design capability, inadequate R&D investment, inability to manufacture major subsystems and components hamper indigenous manufacturing.<\/li>\n\n\n\n
            • Lack of Coordination Between Stakeholders: <\/strong>India\u2019s defense manufacturing capability is hindered by overlapping jurisdictions between the Ministry of Defence and the Ministry of Industrial Promotion.<\/li>\n<\/ul>\n\n\n\n

              Government initiatives to Increase Defence EXport<\/strong><\/h2>\n\n\n\n
                \n
              • IDR Act: <\/strong>Defence Products list requiring Industrial License has been rationalized and manufacture of most of parts or components does not require Industrial License.\n
                  \n
                • The initial validity of the Industrial Licence granted has been increased from 03 years to 15 years <\/strong>with a provision to further extend it by 03 years on a case-to-case basis<\/li>\n<\/ul>\n<\/li>\n\n\n\n
                • Government schemes such as iDEX (Innovations for Defence Excellence)<\/strong> and DTIS (Defence Testing Infrastructure Scheme)<\/strong> to enable innovation within the Defence & Aerospace ecosystem.<\/li>\n\n\n\n
                • FDI in the Defence Sector<\/strong> has been enhanced up to 74% through the Automatic Route and 100% by Government Route, to promote export and liberalize foreign investments.<\/li>\n\n\n\n
                • The government has established 2 dedicated Defence Industrial Corridors <\/strong>in the States of Tamil Nadu and Uttar Pradesh<\/strong> to act as clusters of defense manufacturing that leverage existing infrastructure, and human capital.  <\/li>\n\n\n\n
                • Defence Production and Export Promotion Policy 2020 (DPEPP): <\/strong>The Ministry of Defence (MoD) has formulated a draft DPEPP 2020 as a guiding document of MoD to provide a focused, structured, and significant thrust to defense production capabilities of the country for self-reliance and exports.<\/li>\n\n\n\n
                • In 2021, Defence Acquisition Council (DAC)<\/strong> boosted the \u2018Make in India\u2019 <\/strong>initiative by Acceptance of Necessity (AoN)<\/strong> \u2014 to capital acquisition proposals worth US$ 1.07 billion (Rs. 7,965 crore) \u2014 for modernisation and operational needs of armed forces.<\/li>\n<\/ul>\n\n\n\n

                  Way Ahead<\/strong><\/h2>\n\n\n\n
                    \n
                  • Green Channel Status Policy (GCS)<\/strong> has been introduced to promote and encourage private sector investments in defense production to promote the role of private sector in defense production. <\/li>\n\n\n\n
                  • India has around 194 defense tech startups<\/strong> building innovative tech solutions to empower and support the country\u2019s defense efforts.\u200b<\/li>\n\n\n\n
                  • With the government’s emphasis on easing restrictions on foreign investment in order to achieve India’s goal of an Atmanirbhar Bharat,<\/strong> the growth trajectory of the Indian defense sector remains strong.<\/li>\n<\/ul>\n\n\n\n

                    Source: AIR<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

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