PM Modi targets $5 bn arms exports in 5 years

The 11th edition of DefExpo promises to bring new technologies and technological solutions in the defence arena. However, there are many challenges which can't be overlooked by India's defence sector given the elevated profile of China as a regional and global arms supplier.

Hyderabad: Addressing the 11th edition of DefExpo, Prime Minister Narendra Modi set a target of USD 5 billion worth of military exports in the next five years and invited global defence majors to set up manufacturing hubs in the country.

According to the Stockholm International Peace Research Institute report, India was the second-largest importer of weapons in the world between 2014 to 2018. Before that, for about a decade, India was the largest importer of weapons in the world.

Countries that are smaller than India like Spain, Israel, Italy, and the Netherlands are among the top 10 arms exporting countries in the world.

China, which was once an importer of military material is now the 5th largest exporter of weapons in the World.

Let us know briefly about the chronology of Defence exports from India:-

• In 1991, the Indian defence exports were virtually negligible and as per arms Trade data maintained by SIPRI, India stood at a lowly 40th position.
• Even small countries like Romania, Chile, Pakistan, Singapore, Kenya, Belgium, Iran, and Lebanon exported more defence products (by value) than India.
• Barring the year 2000, in which there was a minor surge in defence exports, the overall performance was dismal, with India still retaining its 40th position among 86 arms exporting countries in the world, in the year 2001.
• In the next decade, from 2001 to 2011, India did not make any noticeable progress in the field of defence exports.
• In 2011, India stood at the lowly 37th rank, among 74 exporting countries, with a minuscule share of 0.01 per cent in the overall global arms trade.
• with the promulgation of strategy for defence exports and streamlining of the SOP for grant of NOC for exports, there has been a slow but consistent improvement in the global ranking of India with respect to defence exports.
• Noticeable progress was witnessed in Indian defence exports in the period from 2014 to 2018.
• In 2017, India ranked 25th with a share of 0.18 per cent.
• In 2018 India’s rank was 24th among 54 defence products exporting countries with a share of 0.17 per cent in the global arms trade.
• The overall performance, in defence exports, in the five years from 2009 to 2013 was abysmal with its share at 0.04 per cent, which improved to 0.15 per cent for the five-year period from 2014 to 2018.

India's Defence imports

According to SIPRI Report 2018, India held the position of being the World largest importer of weapons from 2004-14.

Saudi Arabia displaced India as the largest country which imported weapons during the time 2014-18.

Make in India and Defence sector

None of the major ‘Make in India’ projects in the defence arena, ranging from new-generation stealth submarines, minesweepers and light utility helicopters to infantry combat vehicles, transport aircraft, and fighter jets, have actually taken off in the last six years.

These long-pending projects, collectively worth over Rs 3.5 lakh crore, are either stuck or still meandering through different stages, without the final contracts to launch production being inked.

In 2019, Prime Minister Narendra Modi inaugurated the Indo-Russia Ordinance Factory in Amethi, Uttar Pradesh. Indo-Russia Rifle Private Limited is a joint project of the Ordnance Factory of India and the Russian establishment. This ordinance factory will produce the latest ranges of iconic Kalashnikov (AK-203) rifles.

China’s Modernizing Military

The rise of China's defence budget aided by decades of strong economic growth, has fed the development of military-industrial capabilities. This, in turn, has elevated the profile of China as a regional and global arms supplier.

China, throughout its history, was a net importer of military material relying on the former Soviet Union to help it develop its own military-industrial complex.

As the defense Industrial sector has matured China has reduced dependency on arms imports through domestic innovation and production.

China was once an importer of entire military systems, today it primarily imports components -particularly engines sourced from Russia- to equip domestically designed and produced platforms.

Manufactures such as Aviation Industry Corporation of China (AVIC), China Aerospace Science and Industry Corporation (CASIC), China State Shipbuilding Corporation (CSSC) and China North Industries Corporation (NORINCO) are growing into significant players in the global players in the International arms market aiding China's rise to the top -five global exporters.