Relevance: GS-III (Defence, Industrial Development, National Security) • Source: Ministry of Defence; The Hindu

Key Takeaways

  • Defence industrialisation is a strategic and economic imperative.
  • Indigenous capacity ensures resilience and autonomy.
  • Exports reflect ecosystem maturity.
  • Reforms must focus on speed, scale and coordination.

Context

India’s aspiration to become a developed nation by 2047 rests not only on economic growth but also on strategic autonomy. A strong defence industrial base is critical to reduce historical import dependence, ensure operational readiness, and shield national security from global supply-chain disruptions.

Why a Strong Defence Industrial Base Matters

1. National Security and Strategic Autonomy

Domestic defence manufacturing ensures timely availability, customisation, and sustainment of military platforms. Recent global conflicts have highlighted how export controls and geopolitical shocks can undermine defence preparedness in import-dependent countries.

2. Economic and Technological Benefits

Defence manufacturing is technology-intensive, generating:

  • High-skilled employment
  • Spillovers into aerospace, electronics, materials and artificial intelligence
  • Strong linkages with micro, small and medium enterprises

India’s defence exports to 80+ countries indicate growing global credibility.

3. Geopolitical Leverage

A credible defence industry enhances India’s role as a net security provider, especially in the Indian Ocean Region, while Europe’s rising defence demand creates export opportunities.

Reforms Undertaken

  • Greater private sector participation and liberalised foreign investment norms
  • Corporatisation of the Ordnance Factory Board
  • Procurement reforms under Make in India categories
  • Promotion of defence innovation and start-ups

Key Challenges and Way Forward

Challenges

Way Forward

Complex regulations and slow approvalsSimplify procedures and ensure policy certainty
Limited access to finance, testing and certificationCreate shared testing, certification and financing platforms
Fragmented roles of research, production and exportsRefocus public research agencies on frontier research; industry to lead production
Weak export facilitation mechanismsEstablish a dedicated defence export facilitation agency

A strong defence industrial base is the backbone of India’s strategic autonomy, economic resilience and global influence.

UPSC Value Box

Why this issue matters (Governance / Economy / Security):

  • Reduces strategic vulnerability during crises
  • Builds advanced manufacturing capacity and skilled jobs
  • Enhances geopolitical influence through defence diplomacy

Analytical insight + Reform:

  • Insight: Import dependence turns defence preparedness into a geopolitical liability.
  • Reform: Shift from licence-driven control to trust-based, export-oriented defence governance.

Q. “Discuss the significance of a strong defence industrial base for India’s national security and economic development.”

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