Understanding India’s Defence Dilemma: Why Imports Persist Despite Self-Reliance Goals

New Delhi: Despite a strong push from Prime Minister Narendra Modi to transform India from a major defence importer into a self-reliant exporter, the latest global trends paint a different picture. While India’s defence exports and budget allocations are on the rise, the country remains the world’s second-largest arms importer, highlighting the significant challenges in achieving true self-sufficiency in its defence needs.

Prime Minister Modi’s words in 2014, emphasizing the need for India to produce its own cutting-edge defence equipment and even export it, reflected a national aspiration. However, new data reveals that India’s reliance on foreign arms remains substantial.

Second Largest Importer Globally

According to a recent report by the Stockholm International Peace Research Institute (SIPRI) released on March 10, India held the position of the world’s second-largest arms importer between 2020 and 2024, accounting for 8.3% of global imports. This continued reliance on foreign equipment is driven by India’s complex security environment and its need to modernize its armed forces with advanced technology.

While the ‘Atmanirbhar Bharat’ (Self-Reliant India) initiative has spurred efforts towards domestic defence production, the intricate nature of India’s procurement processes and the technological edge of foreign suppliers mean that imports remain a critical component of its defence strategy. The perceived threats from neighboring countries like China and Pakistan are also significant factors fueling these imports.

Interestingly, SIPRI’s 2023 report had indicated that India was the top arms importer globally between 2019 and 2023, surpassing Saudi Arabia and accounting for 9.8% of global imports. The latest report shows a slight decrease in India’s arms imports (by 9.3 percent between 2015–19 and 2020–24), which SIPRI attributes partly to India’s growing capacity to design and produce its own weaponry.

Rising Exports and Budget Amidst Import Dependence

Despite the slight dip in import volume, India’s defence exports have been steadily climbing, and the government’s budgetary allocation for the defence sector has also seen consistent increases. However, these positive developments have not yet been enough to dislodge India from its position as the world’s second-largest defence importer.

Several factors contribute to India’s continued reliance on imports:

1. Regional Security Concerns: India’s complex geopolitical landscape, marked by long and contested borders and historical conflicts with Pakistan and China, necessitates a strong and modern military.
   
2. Limitations of Domestic Defence Industries: Despite growth in the domestic defence sector, it still struggles to meet all the requirements of the armed forces, leading to the need for imports. Furthermore, domestic research and development projects often face delays due to funding constraints and inadequate infrastructure.
   
3. Immediate Defence Readiness: The urgency to modernize military forces often requires the quick procurement of equipment from foreign sources, as domestic development and production can be time-consuming.
   
4. Military Modernization Programs: The Indian Armed Forces are currently undergoing a significant modernization drive to replace outdated equipment and enhance their overall capabilities.
   
5. Complex Procurement Process: The lengthy and often bureaucratic nature of India’s procurement processes can make foreign acquisitions a more appealing option than waiting for domestically produced alternatives.

It’s worth noting that Ukraine has emerged as the world’s largest arms importer during the 2020–2024 period due to the ongoing conflict with Russia.

Shifting Import Partners and Domestic Manufacturing Challenges

While Russia remains India’s largest arms supplier, accounting for 36 percent of imports, this represents a significant decline from previous periods, indicating a gradual shift towards Western suppliers like France, Israel, and the USA. This shift is becoming evident in India’s new and upcoming major arms orders.

India’s domestic defence manufacturing sector faces several limitations:

1. Infrastructure Limitations: A lack of advanced manufacturing infrastructure often hinders the production of complex defence equipment.
   
2. Investment Shortfalls: Indian defence companies, particularly those in the public sector, have historically faced underfunding, impacting their research and development efforts.
   
3. Prolonged Procurement Process: Lengthy and bureaucratic procurement procedures can stifle innovation and slow down the domestic industry’s responsiveness.
   
4. Over-reliance on the Public Sector: The dominance of public sector undertakings in the defence sector has led to monopolies in certain areas, limiting competition and potentially hindering innovation and efficiency.
   
5. Skilled Workforce Shortage: India faces a shortage of trained personnel and highly skilled workers in the high-tech sectors crucial for modern defence production.

Ambitious Export Targets and the Path Ahead

Union Defence Minister Rajnath Singh recently stated that India has achieved 88% self-sufficiency in ammunition production and aims to reach Rs 50,000 crore in defence exports by 2029. Achieving this ambitious target will require significant and sustained effort.

While India has introduced various policy reforms to strengthen its domestic defence industry and reduce reliance on foreign weapons, the tangible results on the ground are still limited. The country continues to navigate the complex path towards self-reliance in a challenging global security environment.