A Bold Step Towards Self-Reliance in Defence
The inauguration of the Tata Aircraft Complex marks a significant step for India’s vision of Aatmanirbhar Bharat, or self-reliance, particularly in the defence sector. This new facility, a collaboration between Tata Advanced Systems Limited (TASL) and Airbus, positions India as a capable producer of critical defence technology, reducing dependence on foreign manufacturers. Of the 56 C295 military transport aircraft ordered for the Indian Air Force, 16 will be imported from Airbus in Spain, while the remaining 40 will be domestically produced in India at this complex in Hyderabad.
Strengthening Self-Reliance: A Vision Realized The Tata Aircraft Complex embodies Prime Minister Modi’s vision for a self-reliant India, aligning with his government’s goal of reducing foreign dependency for national defence needs. The initiative showcases India's commitment to strengthening its local manufacturing capabilities and becoming a major player in the global defence market.
Key Achievements in India's Defence Self-Sufficiency
Increased Defence Budget and Production Capabilities India’s defence budget has grown significantly, from ₹3 lakh crore in 2013-14 to ₹5.93 lakh crore in 2023-24. This increase in funding supports the development of advanced military equipment and has propelled the country’s defence production output to a historic high of ₹1.27 lakh crore in 2023-24, up from ₹40,000 crore in 2013-14.
Surge in Defence Exports India's defence exports have grown exponentially, from ₹686 crore in 2013-14 to ₹21,083 crore in 2023-24. Indian-made military products are now supplied to over 100 countries, underscoring their reliability and quality. These exports range from essential items like helmets and bulletproof jackets to sophisticated systems like the BrahMos missile.
Reduction in Import Dependence India has achieved substantial progress in reducing its reliance on imported defence equipment. Foreign procurement’s share of defence spending dropped from 46% in 2018-19 to 36.7% by the end of 2022, a trend expected to continue with increased local production.
Policy Reforms Supporting Indigenisation
Enhanced Indigenous Content in Procurement The Defence Acquisition Procedure (DAP) 2020 mandates 50% indigenous content in procurement contracts, encouraging international defence companies to set up production facilities within India. The Ministry of Defence has further supported this indigenisation with its fifth Positive Indigenisation List, exclusively reserving 346 items for procurement from Indian sources. Over 12,300 items have been indigenised, facilitated by the Srijan Indigenisation Portal to connect local suppliers with defence requirements.
Infrastructure Development and Strategic Partnerships
Establishing Defence Industrial Corridors India has established two key defence industrial corridors in Tamil Nadu and Uttar Pradesh, attracting ₹7,000 crore in investments. These corridors foster local defence production, focusing on manufacturing in aerospace and naval systems.
Strategic Collaborations with Global Partners The C295 manufacturing partnership with Spain and Tata Advanced Systems is a landmark collaboration, exemplifying high-impact international partnerships. Other collaborations include ventures with Lockheed Martin for the C-130J Super Hercules airframes, a joint project with Russia for AK-203 rifles, and Safran’s MRO (Maintenance, Repair, and Overhaul) facility. Additionally, Saab has set up production of Carl Gustaf M4 rocket systems, illustrating foreign investment in India’s defence industry.
Advances in Naval and Air Platforms India has bolstered its naval and aviation capabilities with projects like the INS Vikrant, the largest aircraft carrier built in India, and Asia’s largest helicopter manufacturing facility in Tumakuru, which drives advancements in aviation technology.
Supporting Startups and MSMEs in Defence
Empowering Small Businesses and Startups The government has allocated ₹1,500 crore from the 2024 defence budget to support startups and MSMEs, which now number around 8,000 in the defence sector. Plans are in place to double this figure in the coming years, reflecting the strategic importance of small enterprises.
iDEX Program: Fueling Innovation in Defence Under the Innovations for Defence Excellence (iDEX) initiative, over 400 startups and MSMEs are developing innovative solutions for defence needs. To date, iDEX has facilitated the indigenisation of 35 items valued at ₹2,000 crore, showcasing the vital role of young entrepreneurs in shaping India’s defence landscape.
India’s Future as a Global Defence Powerhouse
The inauguration of the Tata Aircraft Complex for C295 production represents more than an assembly milestone; it underscores India’s emergence as a defence powerhouse. From building Asia’s largest helicopter facility to supporting local startups and advancing naval platforms, India’s defence sector is a model of self-sustaining growth. With the capability to export to over 100 countries, establish robust partnerships, and achieve record-breaking local production, India is steadily rising as a formidable player on the global stage
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