India’s rising defence exports: A strategic evolution

Madhurjya Saikia

(madhurjyatu15@gmail.com)

India’s defence export industry is experiencing rapid growth, marking a significant mile stone in the country’s journey towards self-reliance and global brand recognition. With a strategic shift towards boosting indigenous defence manufacturing capabilities, India is emerging as a key player in the global defence market. This fundamental shift in defence exports reflects India’s commitment to enhance its defence deterrence while exploring international collaborations. As India expands its footprint in defence exports, it not only strengthens its own security infrastructure but also contributes to global security dynamics.

Defence exports are a pillar of the government’s drive to attain self-sufficiency in defence production. The government’s shift from viewing India as a net importer to a net exporter over the past few years, a paradigm shift towards India’s security regime. India’s defence exports surged to a record Rs. 16,000 crore in the year 2022–23, a huge 800% growth in 5 years and reaching 85 countries across continents. This propelled India into the top 25 defence exporters globally. India’s expanding defence exports include missiles, rockets, torpedoes, artillery guns, cryogenics, and drones, among others. Defence exports are crucial to India for several reasons. It generates revenue, contributing to economic growth and job creation. Again, it promotes self-reliance by enhancing indigenous defence manufacturing capabilities, enhancing international partnerships, and improving diplomatic relations and strategic alliances. Defence exports showcase India’s technological advancements and expertise on the global market, building its brand reputation as a reliable defence partner. It helps offset defence expenditure, allowing more resources to be allocated towards research, development, and modernization of defence infrastructure.

Defence exports play a pivotal role in expanding the Indian economy and  international relations. Economically, they contribute to revenue generation and job creation, providing a significant boost to various sectors. By promoting indigenous defence manufacturing capabilities, it supports the government’s initiatives towards self-reliance and technological advancement. It provides an opportunity to earn foreign exchange, which can strengthen the domestic economy. Moreover, the revenue generated from defence exports can be reinvested into research, development, and modernization efforts, further strengthening the defence infrastructure and enhancing overall economic growth. In terms of international relations, defence exports facilitate strategic partnerships and alliances with other countries. By supplying defence equipment and technology, India establishes itself as a reliable and trustworthy defence partner, building goodwill and cooperation on the global stage. Successful defence exports also demonstrate India’s technological advances and expertise, enhancing India’s brand reputation as a leading player in the defence industry. Furthermore, defence exports pave the way for broader economic cooperation and diplomatic engagements, opening up avenues for mutually beneficial relationships beyond the realm of defence. Defence exports serve as a catalyst for economic growth and positive international engagements, positioning India as a key player in the global defence arena and developing India’s global space for power projection. This also contributes to building local operational capabilities and, therefore, enhances interoperability with our own forces, especially during UN peacekeeping missions.

There is a need to promote investment in the defence sector, both in R&D and production, thereby resulting in higher self-reliance and indigenization. While putting in place the policy framework and procedural mechanisms, the thrust would be on indigenous production and exploring possibilities of exports to other nations that may look forward to supplies from India. Since defence technology needs long-term investment, its obsolescence is high with low economies of scale. Hence, the policy of maximising indigenous production without a well-supported R&D policy and export strategy may not bring the desired results. India’s defence sector reform aims to enhance efficiency, promote innovation, and boost self-reliance. Initiatives include streamlining procurement processes, encouraging private sector participation, and focusing on indigenous research and development. These reforms seek to modernise the armed forces, reduce dependency on imports, and bolster defence capabilities. Additionally, policies like the “Make in India” initiative incentivize domestic defence production, upskilling India’s manufacturing capabilities.

India’s defence sector plays a crucial role in enhancing the country’s global recognition. By showcasing advancements in defence technology, indigenous manufacturing capabilities, and strategic partnerships, India asserts itself as a formidable player on the international stage. Successful defence exports, participation in joint military exercises, and collaborative defence projects further solidify India’s position as a reliable and influential defence partner.  India’s active role in peacekeeping operations and its commitment to global security initiatives garner respect and recognition from the international community as a net security provider. A robust defence sector elevates India’s influence in global affairs, contributing to its recognition as a permanent member of the UNSC.