Experts Explain | Make in India in defence sector: Challenges, bottlenecks, and the way forward

📌 Summary:

• Following Operation Sindoor, Defence Minister Rajnath Singh stressed India must adapt to tech-driven warfare; Make in India in defence is essential for strategic autonomy

• India still ranks among top 10 arms importers globally; dependence rooted in domestic tech limitations + budget constraints

• Procurement bottlenecks: 2022-23 MoD Parliamentary Standing Committee found 119 of 178 projects faced timeline overruns; 49 projects faced delays exceeding original time allotted (overruns ranged 16% to 500%)

• Causes of delay: ambiguous Qualitative Requirements (QRs); overlapping multi-layer approvals; inadequate engineering talent in govt institutions (low compensation); slow R&D in DRDO/DPSUs

• Reforms undertaken: Strategic Partnership (SP) model — Indian private firms + foreign OEMs for submarines, helicopters, fighter aircraft

• FDI in defence: liberalised from 24% → 49% in 2016 → 74% under automatic route in 2020; enables JVs with foreign firms

• Investment also in UAVs, autonomous systems, advanced air defence for strategic preparedness

• Way forward: streamline QRs; reduce procedural layers; improve talent retention; deepen private sector & startup participation; align with iDEX, Defence Industrial Corridors (UP & Tamil Nadu)

🎯 UPSC Relevance: GS3 — Indigenization of defence; Make in India; FDI; technology missions; security forces

📝 Prelims Facts:

• India is among top 10 global arms importers
• 2020 reform: FDI cap in defence raised to 74% (automatic route); 100% by govt approval
• SP Model: collaboration of Indian private firms with foreign OEMs
• MoD Standing Committee 2022-23: 119/178 projects had timeline overruns
• Two Defence Industrial Corridors: Uttar Pradesh and Tamil Nadu

🔑 Key Term: Strategic Partnership (SP) Model — DPP/DAP framework allowing Indian private firms to tie up with foreign OEMs to produce major platforms (submarines, helicopters, fighter aircraft, AFVs)