India’s Defence Exports
- 09 Jul 2022
- 5 min read
Why in News?
India’s defence exports for 2021-22 were estimated at Rs 13,000 crore, the highest ever.
- The U.S. was a major buyer, as also nations in Southeast Asia, West Asia and Africa.
What are the Key Highlights?
- The private sector accounted for 70% of the exports, while public sector firms accounted for the rest.
- Earlier, the private sector used to account for 90% but now the share of defence public sector units had gone up.
- While India’s defence imports from the U.S. have gone up significantly in recent years, Indian companies have been increasingly becoming part of the supply chains of U.S. defence companies.
What steps have been taken recently to boost defence exports?
- In January 2022, India signed a USD 374.96-million deal with the Philippines, its single biggest defence export order, for the supply of three batteries of shore-based anti-ship variant of the BrahMos supersonic cruise missile.
- India has imposed a phased import ban on 310 different weapons and systems during the last two years, which helped boost export.
- These weapons and platforms will be indigenised in phases over the next five to six years.
- The increased partnership with the private sector has led to a substantial rise in defence exports.
What is the Status of India’s Defence Exports?
- Defence exports are a pillar of the government’s drive to attain self-sufficiency in defence production.
- Over 30 Indian defence companies have exported arms and equipment to countries like Italy, Maldives, Sri Lanka, Russia, France, Nepal, Mauritius, Sri Lanka, Israel, Egypt, UAE, Bhutan, Ethiopia, Saudi Arabia, Philippines, Poland, Spain and Chile.
- The exports include personal protective items, defence electronics systems, engineering mechanical equipment, offshore patrol vessels, advanced light helicopters, avionics suits, radio systems and radar systems.
- However, India’s defense exports are still not upto the expected lines.
- The Stockholm International Peace Research Institute (SIPRI) ranked India at number 23 in the list of major arms exporters for 2015-2019.
- India still accounts for only 0.17% of global arms exports.
- Reason for dismal performance in India’s Defense exports is that, India’s Ministry of Defense so far has no dedicated agency to drive exports.
- India has set a target of clocking defence exports worth USD 5 billion by 2024.
What are the Initiatives Related to Defence?
- Defence Production and Export Promotion Policy 2020 (DPEPP 2020):
- The DPEPP 2020 is envisaged as an overarching guiding document to provide a focused, structured and significant thrust to defence production capabilities of the country for self-reliance and exports.
- Multi-Pronged Steps Towards Self Reliant Defense Sector:
- Strategic Partnership:
- Positive Indigenization: