India's burgeoning defence export industry is witnessing a significant surge, with the private sector playing a pivotal role in its growth.
According to Harpreet Sidhu, an analyst at GlobalData Aerospace, Defence and Security, private companies are making major strides in the development and export of advanced weapons systems, solidifying India's position as a major player in the global arms market.
This rise in private sector participation is evidenced by India's impressive arms and ammunition export figures, which surpassed $3 billion between 2018 and the last financial year.
This growth is fueled by the government's proactive measures to encourage domestic production, such as the Defence Output and Export Promotion Policy (DPEPP) 2020, which aims for a turnover of US$25 billion and exports of US$5 billion in the aerospace and defence sector by 2025.
Sidhu highlighted the impact of initiatives like the relaxation of licensing restrictions, the Production Linked Incentive (PLI) scheme, and the Innovation for Defence Excellence (IDEX) scheme in fostering private sector involvement.
He also emphasized the significance of cooperation between public sector undertakings (PSUs) and private businesses in creating cutting-edge defence systems.
"Several of them are integrated into international defence supply chains," Sidhu explained to Sputnik India. "Because of this, they have been able to establish themselves in other markets by providing dependable, affordable Defence solutions."
Leading the charge in exports is the BrahMos missile, a joint venture between India and Russia. Its impressive capabilities and long-range have garnered significant international interest, showcasing India's technological prowess.
However, private companies are also making their mark with a diverse portfolio of products. Exports include body armour, naval vessels, helicopters, avionics, and weapons systems like the Pinaka multi-barrel rocket launcher, Dornier 228 aircraft, and the Kavach anti-missile system.
Notable successes include the K9 Vajra-T self-propelled howitzer developed by Larsen & Toubro in partnership with South Korea's Hanwha Defence, and the Tata Group's Wheeled Armoured Platform (WhAP), developed in collaboration with the Defence Research and Development Organisation (DRDO), which has secured a significant deal with Morocco.
The government's support for Micro, Small, and Medium-Sized Enterprises (MSMEs) further strengthens the industry by providing larger companies access to crucial parts and technologies.
Around 50 Indian private companies, including Tata Group, Adani Aero Defence Systems and Technologies, Ashok Leyland Defence, L&T India Defence and Aerospace, Mahindra Aerospace, and Kalyani Group, are now exporting to countries like Italy, Russia, Maldives, Armenia, Sri Lanka, UAE, and France.
"Other notable exports include the Advanced Light Helicopter (ALH) Dhruv, produced by Mahindra Aerospace and Hindustan Aeronautics Limited (HAL), which has been sold to countries like Nepal and Mauritius, and Offshore Patrol Vessels (OPVs) built by Reliance Naval and Engineering for smaller nations in the Indian Ocean region," Sidhu added.
With continued government support and private sector innovation, India is poised to further strengthen its position in the global defence market, contributing significantly to the nation's economic growth and strategic influence.
