Wrong way to boost defence production

Wrong way to boost defence production

The government has banned the import of 101 items of ordnance, ranging from missiles and aircraft to assault rifles, ammunition and radar.

Of these, 69 items will cease to be imported by the end of this calendar year. Boosting indigenous production of what the armed forces requires is a great way to strengthen indigenous manufacturing, increase exports and, eventually, make savings on defence spending. But pre-announcing import bans and their timelines is a poor way to go about it. In the first place, it implies either of two things: India already has a large enough supply of the things on the banned list to meet any eventuality, or India is declaring peace, abandoning any warlike intentions in the near future. If there are ample stocks, what is the incentive for local producers?

And why should any external aggressor get the impression that India does not expect to go to war? Equally material is another consideration: benchmarking Indian production to the global competition in every segment.

Announce a percentage price preference and a tapering off period that vary, depending on the complexity of the equipment in question.

But the most important thing is what has been most lacking in Indian defence procurement: clarity on the problem for which a solution is sought. Often, this is kept vague to provide leeway for import lobbies and their commission agents.

Specify the problem in detail and let producers come up with solutions that are effective, instead of specifying, often over-specifying, the requirement.

Place orders on a scale large enough to warrant investment in fresh capacity. New design startups and experienced manufacturers can collaborate to offer indigenous solutions to problems.

Once tried and tested by India’s armed forces, they would have a global market.