It has been quite a few years since the union govt. of India came out with the slogan of Atmanirbhar Bharat. It all started with the initial Make in India policy post the 2014 power shift and NDA govt. coming to power under the leadership of Narendra Modi. Further emphasis on Transfer of Technology (ToT) and then an ambitious move for becoming self reliant on the defense procurements have been quite a game changing policy shift.
It was not long before India used to import most of it’s defense equipment from the Russia or western countries. This used to eat away a major chunk of the capital expenditure allocated for in the defence budget. However, the new policy shift not only encouraging the MSMEs to manufacture and spend on R&D but, procuring 70-75% of defense equipment but, also exporting a good amount of products to various other countries. The value reached $2.8 billion (INR 23,622 crore) in 2024.
Now, why it is all the more important during this period of global economic uncertainties!
1. It’s not only important that we spend our capital resources judiciously on expensive imports and the lifetime supports but, also earn through exports.
2. Probably, the most important point in today’s world is hyper protectionist policies and weaponization of trade. This is a chokehold for a country like India who still have to depend on other countries for critical technology and supply chain. Though, this weaponization of trade policies are against the free trade policies of the liberalized global market but, countries putting unnecessary barriers would severely disrupt the supply chain jeopardizing India’s critical defense programs. e.g., The dependence on GE engines for LCA Mk1A, Mk 2 and upcoming AMCA programs.
Therefore, the government’s decision to go for a join development of 120KN engine in partnership with French giant Safran is a well timed decision. This diversification as well as developing our atmanirbhar capability for such a critical technology is very important to shield the future of our ambitious programs from external disruptions.
It’s time for the industry and the MSMEs to come together and join hands to innovate, focus on R&D and develop more products in India for India and the rest of the world. It’s time for leading than just following.