The Strategic Pillar of Viksit Bharat: Strengthening India’s Defence Industrial Base

Syllabus: Internal Security

Strategic Context

  • India’s Viksit Bharat 2047 vision depends on economic growth and robust strategic capabilities.
  • A strong defence industrial base is vital for national security and strategic autonomy.
  • Historically, restrictive policies limited private participation, increasing import dependence.
  • Reliance on foreign private suppliers created structural vulnerabilities and security risks.

Post-Reform Transformation

  • Recent reforms have opened defence manufacturing to private sector participation.
  • FDI liberalisation, corporatisation of the Ordnance Factory Board, and expanded ‘Make’ procurement strengthened the ecosystem.
  • Pro-active innovation promotion boosted domestic capabilities.
  • Defence production has increased, with exports reaching over 80 countries.
  • India is emerging as part of global defence supply chains.

Global Security and Geopolitical Opportunities

  • Conflicts in Europe, West Asia and Asia exposed fragility of global supply chains.
  • Countries with strong domestic defence industries showed greater strategic resilience.
  • India faces persistent border and maritime challenges, making self-reliance indispensable.
  • Rising European defence spending and saturation of traditional suppliers create new markets.
  • India’s Indian Ocean Region location and diplomatic outreach enhance export potential.

Reform Imperatives

  • Regulatory complexity continues to deter MSMEs and startups.
  • Export licensing, joint ventures and technology-transfer approvals need faster clearances.
  • Long-term demand visibility is necessary to attract large private investments.
  • Achieving ₹50,000 crore defence exports by 2029 requires policy continuity.

Role of DRDO and Institutional Support

  • DRDO should prioritise frontier research and advanced technology development.
  • Production, scaling and commercialisation should shift to public and private industry.
  • A dedicated defence export facilitation agency can provide single-window coordination.

Financial and Infrastructure Reforms

  • Manufacturers face credit constraints, stringent standards and delayed trials.
  • Export financing instruments, integrated testing facilities and international certifications are required.
  • Government-to-government agreements and long-term service commitments boost credibility.

Overall Significance

  • Defence exports signify technological maturity and strategic reliability.
  • A strong defence industrial base reduces imports, creates high-skilled jobs, and enhances geopolitical leverage.
  • Sustained reforms are essential for India’s emergence as a confident global power.

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