Liberalise the defence industry

And thank Russia for shaking India out of its lazy old ways

This is an archived blog post from The Acorn.

What stands in the way of the Indian armed forces using indigenously developed main battle tanks, fighter aircraft and aircraft carriers?

Answer: Cheap Russian imports.

Years of dependence on Russian military hardware—which could be obtained at rather attractive prices—simply meant that the armed forces preferred readymade products they could use, rather than take more risky route of using the gear that the Defence Research and Development Organisation (DRDO) was developing. Giving the armed forces roughly what they wanted was a less risky option for the politicians heading the defence ministry. The relative ease with which Russian arms could be imported meant that there was no real incentive for India’s policymakers to think how domestic defence production could be improved. This is an oversimplification, of course, but it is the nub of the issue.

India needs a crisis, it is said, to jolt it out of its ways. Russia’s behaviour over the refitting and delivery of the aircraft carrier should provide one. Not merely because it upsets the navy’s plans to have two carrier groups by the end of this decade, but because the possibility of a Russia-China equation is real. India should develop a reputation for standing up to Russian armtwisting. Reliance on imports from Russia—cheap or otherwise—, however, poses long-term strategic risks.

Now, building main battle tanks, fighter aircraft and aircraft carriers is not trivial. But there is no reason to believe that India can’t develop and build them indigenously. It’s time to liberalise the defence industry. Transforming defence procurement policies to ensure that there are strong domestic manufacturers is not rocket science. It can be done.

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