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This editorial is based on “India’s defense exports and humanitarian law”, published in The Hindu on 24th September 2024.
The article highlights the legal and ethical issues surrounding India’s defense exports, specifically pointing out the lack of International Humanitarian Law (IHL) compliance reviews. It calls for the introduction of comprehensive legislation to ensure that India’s defense exports are responsible and in line with global standards.
Prelims Focus:
- India’s defense sector
- Supreme Court
- BrahMos missiles
- Defence Production and Export Promotion Policy
- Innovations for Defence Excellence
- Defence Research and Development Organisation (DRDO)
- Advanced Light Helicopter (ALH)
- Defence Procurement Procedure
Mains Focus:
- Growth drivers of India’s defense exports
- Key issues within India’s defense sector
India’s Growing Defense Export Sector
India’s defense sector, driven by indigenization and self-reliance, has entered the global arms market, raising significant legal and ethical concerns.
A recent Supreme Court case dismissal involving arms exports to Israel exposed gaps in India’s legal framework, particularly the lack of IHL compliance reviews.
Unlike countries like the Netherlands and the UK, India does not require assessments of IHL adherence under its current regulations, such as the Foreign Trade Act.
As India aims to become a leading arms exporter, it is vital to enact legislation mandating IHL compliance reviews. This would not only safeguard India’s international reputation but also contribute to global efforts to prevent arms misuse. Setting clear guidelines for defense manufacturers would also ensure that the indigenization process aligns with ethical and legal standards.
What is the Current Status of India’s Defense Exports?
Recent Performance: India’s defense exports reached ₹6,915 crore in Q1 FY 2024-25, marking a 78% increase compared to ₹3,885 crore during the same period in FY 2023-24.
Growth Trajectory: Defense exports have grown over 12 times since FY 2017 and 31 times since FY 2013-14, making India a rising force in the global arms market.
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- India now ranks among the top 25 arms-exporting nations, supplying defense products to around 85 countries.
Export Products: India’s portfolio includes aircraft like Dornier-228, artillery guns, BrahMos missiles, PINAKA rockets, radars, simulators, and armored vehicles.
Key Drivers Behind India’s Defense Export Growth
Policy Reforms and Government Initiatives:
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- The Defence Production and Export Promotion Policy (DPEPP) 2020 aims to achieve a turnover of USD 25 billion in defense manufacturing by 2025, including USD 5 billion in exports.
- FDI limits have been raised to 74%, and initiatives like ‘Make in India’ and ‘Atma Nirbhar Bharat’ support indigenous manufacturing.
- In FY 2023-24, 75% of the defense capital procurement budget was allocated for domestic industry.
Private Sector Participation:
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- The number of defense licenses has doubled, and major private players like Tata Advanced Systems Limited are contributing to exports.
- Two Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu further boost production.
Focus on Research & Development:
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- DRDO’s increased budget of ₹23,855 crore in FY 2024-25 has led to exportable innovations such as the BrahMos missile and Akash air defense system.
Strategic Partnerships and Government-to-Government (G2G) Agreements:
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- India has defense cooperation agreements with over 53 countries, facilitating market expansion.
Competitive Pricing and Quality:
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- Indian defense products, such as the Akash surface-to-air missile system, offer competitive pricing, attracting buyers from developing nations.
Offset Policies and Technology Transfer:
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- India’s offset policies encourage joint ventures and technology transfers, enhancing export potential.
Major Issues Related to India’s Defense Sector
Dependence on Imports: Despite growth, India remains one of the world’s largest arms importers, with notable deals like the USD 5.43 billion S-400 air defense systems from Russia.
Slow Procurement Process: The defense procurement process is complex and slow, leading to modernization delays.
Limited Private Sector Participation: Public sector undertakings dominate major contracts, limiting opportunities for private companies.
Inadequate Research and Development: While there is increased funding, India’s defense R&D lags behind global leaders, leading to delays in critical projects like the Kaveri engine.
Technology Gaps: India continues to rely on foreign suppliers for key components like fighter jet engines, limiting self-reliance and export capabilities.
Challenges in Offset Policy Implementation: The performance of India’s defense offset policy has been weak, with only 17% of offset obligations fulfilled between 2005–2018.
Lack of Robust Arms Export Control Legislation: India lacks specific laws to assess the human rights or IHL compliance of recipient countries.
What Measures Can India Take to Strengthen Its Defense Sector?
- Enhance International Collaborations: Increase partnerships and joint ventures with global defense manufacturers to access cutting-edge technology.
- Establish a Robust Export Financing Mechanism: Develop a government-backed financing mechanism to support defense exports.
- Implement a Comprehensive IHL Compliance Framework: Establish a dedicated body for IHL compliance reviews of arms export recipients.
- Invest in Niche Technologies and Indigenous Innovation: Focus on developing advanced technologies like AI and hypersonic systems to gain a competitive edge.
- Streamline Defense Production and Export Processes: Introduce a single-window clearance system and reduce testing timelines.
- Develop a Strong Offset Management System: Revamp the offset policy and focus on export-oriented projects through technology transfer.
- Establish Regional Service Hubs: Set up hubs in friendly nations like Vietnam and the UAE to provide long-term support for Indian defense equipment.
Conclusion
As India seeks to become a global player in defense exports, addressing gaps in IHL compliance and fostering innovation will be key. A strategic approach that aligns defense ambitions with global standards will enhance national security and strengthen India’s international standing.
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