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Indian Private Sector May Turnaround India : From Defence Equipment Impoter to Exporter

India relies on its trusted countries for its defence requirement. Post independence, Indian government neglected Indian defence equipment research and turned dependent on Russia for first 50 years.
Indian government announced many critical defence project under DRDO but the cost overrun and over delayed delivery of products made such product obsolete.
For example Arjun tank took many decade to get developed.
At the same time, on air defence, India showed it's capabilities in the missile segment and that too thanks to ISRO research.
We should not forget that Indians are instrumental in designing many critical defence project abroad but due to delayed decision making process, India lacked in defence sector. Every year, India spend many billion $ to fulfill it's defence requirement.
Indian government used to be very reluctant in opening their defence sector due to national security concern which overplayed many ambitious projects.
Post Modi government took charge in 2014, government first vision was to lower the dependency on partner countries for defence equipment as well as to save valuable foreign currency. Indian government at last opened its defence sector post announcing "Make in India" initiative. Government realized quickly that without private sector fund and skilled resources, it's impossible to make India self reliant in defence sector.
Government also announced that any international company receiving big defence contracts will be liable to setup their shop in India.  More Importantly, companies like Tata group, Reliance Defence, Mahendra and others jumped into defence sector with open capex  to ensure that they capture the pie of multi billion contract. Even the software sector firm got involved. As per news report, Reliance Defence is near to close a deal to produce russian air defence system which is $6Bn deal. At the same time Tata is on the verge of showing it's cannon. Even USA based defence companies offered India to setup their shop in India as they see India as  major client.
The move is going to be multi beneficial for India. Firstly, Indian will learn the system faster than anyone else even though it's only production. Indian and International companies will invest billions to develop the infrastructure. If I am not wrong China more or less did the same when they opened their manufacturing sector. They learnt it and then developed the better products.
The correlated investment in defence sector with "Make in India" may reduce Indian Army dependency on imported equipment and always suffer due to spare part shortage.
In my point of view, the move is going to generate millions of job and billions of $ savings in year to come.

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About Devendra Prasad

20 years plus industry veteran of domestic and international ICT domain with the expertise in Business, Technology, Strategy and Analysis. Specializes in forecasting impact analysis, trends and recommendations for Investments, Technology and Regulations.
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