Need to build a “defence industrial ecosystem” in India

Need to build a “defence industrial ecosystem” in India

The Defence Industrial Corridor (DIC) announced by Prime Minister Narendra Modi will revolutionise Indian defence production and help in making India self-reliant. The corridor will have two main components: to build an ecosystem for the private sector to develop defence infrastructure and market access, and second to draw investment into high-tech industrial clusters in defence manufacturing. It is thus a holistic programme for a military industry that aims at building domestic factories producing arms in the country while adapting them for export.

Need of defence industrial corridor

There is a dire need for indigenisation of defence production mainly because of its high expenditure on defence equipment from outside. For this certain foreign companies are given sole right to produce defence equipment. This should be deemed to be illegal.

Every country depends on other countries for defense products. India is also one of them. The absence of a strong industry base, and the inability to reach out to other countries will jeopardize India’s abilities to negotiate.

The need for a defense industrial corridor is of utmost importance to India. We live in a globalized world where the competition is rising by the day and our adversaries are looking for any chance to gain ground. While Pakistan remains our immediate threat, China still remains an unsponsored ally who could potentially be an even bigger threat than Pakistan.

India is an important player in the world arms trade, but as in other spheres of economic activity, it still occupies a relatively modest position in the global market for defense equipment.  India is one of the largest importers of arms in the world and spends $3.62 billion on an average annually.

Significance of defence industrial corridor

The Department of Defence Production (DDP) under the Ministry of Defence is responsible for formulating policies and promoting the development of India’s defence industry. The private sector, being the principal user of India’s defence platforms, has been playing a dominant role in India’s defence manufacturing process.

Defence Corridor can categorically be stated as a cluster of private industries which develops and maintains complex defence systems or products. It is also about the transfer of technology and know-how for quality maintenance, supply and sustainment. With this, India would be able to harness its manufacturing potential and expertise in the field of defence systems and platforms.

The development of these corridors will not only help in accelerated growth and regional industry agglomeration, but will also facilitate a well-planned and efficient industrial base which will lead to increased defence production in the country and the region.

Defence industrial corridors (DICs) are important territorial areas under Defence Ministry to support the Indian Armed Forces during contingencies. The development of these corridors will not only help in accelerated growth and regional industry agglomeration, but will also facilitate a well-planned and efficient industrial base which will lead to increased defence production in the country and the region.

The DIC project aims to create a deterrence to internal and external threats by the long-term sustenance of secure, reliable, and cost-effective indigenous defence industry capability. Creation of the DIC is undertaken by integrating the Indian defense industry with global supply chains for optimum benefit in terms of technology up-gradation, resource optimization, cost benefits, timely delivery, and availability of best-in-class products to the Services and other defense stakeholders.

The Government of India is determined to catch up with China in manufacturing high-end Defence equipment. This has been one of the pillars of the Government's Make in India initiative. The industrial corridor being developed in collaboration with Japan and South Korea is part of this strategy.

A strong defence industrial corridor encompassing the Western and Eastern Naval Command (WNC & ENC), defence research institutions, military training establishments, aerospace industry, private sector defence production units, shipyards etc. coupled with coastal economic zones gives rise to a potential engine of the economy in India. It has the potential to drive double-digit growth in leading India to its $5 trillion-plus economy.

The defence industrial corridor will create a new market for small, medium and large Indian manufacturers of defence equipment across the entire region.

The central government has drawn a defense industrial corridor, connecting high-tech manufacturing zones with our frontline defense manufacturing units. It is expected to significantly boost the country's self-reliance in providing a wide spectrum of highly sophisticated and critical military products.