MMaking India self-reliant in the field of defense equipment manufacturing and procurement has been one of the important vectors to empower the country under whose ideal? atmanirbharta In the midst of fluid geopolitics. adventure reforms And import list restrictionsLaunches have been made to accelerate this push. What role does Europe play in this important matrix? To navigate the complex terrain of convergence with like-minded countries, there is a need to identify critical drivers and operate with the necessary political will and flexibility.
However, the various aspects of defense cooperation between India and European players are not well explored. In addition to rhetoric, mutual engagement needs to be put into realistic terms in order to maximize benefits from potential collaborations.
Within India’s military-industry landscape, the important drivers of self-reliance can be summarized below.
Diversifying India’s Import Basket
Russia’s war on Ukraine has destroyed its formidable military stature, planning and equipment. of India neutrality The war on its large scale deals with dependency On the import of weapons from Russia. Although, Research This shows that while Russia remains India’s largest supplier, yet, trend indicator value (TIV) India’s imports from non-Russian sources have increased over the past decade. The TIV analysis also shows that if this trend continues with India’s current attempts at self-reliance over the next decade, the gap between Russia’s share and that of other suppliers, especially the West, will narrow. shrink ahead.
This dependence is likely to decline further due to the long-lasting effect western sanction regime, High-tech military shortages are expected to arise in Russian military architecture. The sanctions could starve Russia for computer chips and semiconductors that could be used in advanced military equipment, which would ultimately discredit India’s ability to continue as a dependable supplier for not only power projects but also in the future. Obviously, India will need to diversify in time.
Involvement of private players to improve efficiency
The current budget includes provisions for opening up defense research and development (R&D) and procurement for the private sector. giving 68 per cent of capital acquisition budget for procurement from domestic industry and 25 per cent of defense R&D budget for private sector including start-ups.
There is also a need to increase spending on R&D. India of the world third largest military spender and accounted for About 11 percent of the global arms trade (between 2017 and 2021). These weapons imports perform poorly on the Indian defense R&D ecosystem. according to Lok Sabha Standing Committee on DefenseIndia spends only 6 per cent of the defense budget on R&D as compared to China’s 20 per cent and the US 12 per cent.
The Narendra Modi government is taking several steps to boost the national R&D base by involving the private sector and start-ups. This year, for example, in the Union Budget for the fiscal year 2022-23 allotted Rupee. 1,200 crore for academic defense research.
Where does Europe fit in?,
For Europe, Russian President Vladimir Putin’s war in Ukraine has perpetuated a fundamental restructuring of the global order with advanced strategic designs and recalculated responses.
For Europeans, this will translate into, among others, increased cooperation with relevant strategic partners in the Indo-Pacific and interoperability, For India, it will once again be an attempt to diversify its import basket as Russia Increasing Arms relations with China is a destabilizing factor for India. The post-Cold War era saw Russia’s currency change from refusing to sell arms to China to now providing both countries identical technologies.
Read also: The Indian military cannot be a mute spectator to the global semiconductor boom. See America, China
India’s Defense Offset Policy and Europe
2016 DoP has been a major tool for India develop Its indigenous defense manufacturing sector. DOP. According to, For purchases exceeding Rs 2,000 crore, a foreign company will have to ensure 30 per cent domestic value addition in India.
came next Defense Acquisition Process (DAP) 2020, the second attempt by the Modi government to streamline India’s defense procurement system and promote ‘Make in India’ in defense manufacturing. DAP emphasizes on high indigenous content in procurement and fast acquisition.
India expects Europe to cooperate on the lines of the 2016 and 2020 reforms and promote India’s DoP. While some progress has been made, obstacles have emerged from time to time.
Europeans rarely end up as the lowest bidders
Europeans have rarely emerged as the lowest bidder for India, a slot often taken by Russia, Moscow’s power in this area derives not only from the vast volume of sales, but also from desire To provide weapon systems and technologies that any other country would not export to India because of its own national regulations or at an affordable cost because of its desire to do so.
However, the lowest bid is no longer a barrier. The cheapest deal matters, but India has been at the fore in identifying critical technologies and requirements and has outperformed the lowest bidders in a given time frame. Quality was required. Europeans have also been ready to meet the guidelines of the DAP, but what India has not been able to convince the Europeans is doing. russian style joint ventures.
France’s unique situation
Among Europeans, France is by far the closest defense partner for India. Different Rafale fighter jet dealhave collaborated in miraj fighter And their upgrades – all these are important for the Indian Navy and Air Force. India had signed a $4.16 billion contract with a French firm to make six scorpene submarines, but the project has been reset for the Request for Proposal (RFP) stage.
France has substantially increased defense cooperation with India barracuda nuclear submarine Last year with the ‘Make in India’ element. Shortly after the Rafale deal, this French proposal to provide India with information on building a nuclear submarine has the potential to establish France as India’s pre-eminent defense partner, which Russia currently holds.
In April 2019, Indian Air Force issued Request for Information (RFI) or preliminary tender to acquire 114 Multi-Role Fighter Aircraft (MRFA) jets at a cost of approximately $20 billion. It has been hailed as one of the world’s largest military procurement programs under the ‘Make in India’ initiative in recent years. In 2022, top contenders The deals include Lockheed Martin’s F-21, Boeing’s F/A-18, Dassault Aviation’s Rafale, Eurofighter Typhoon, Russian MiG 35 and Saab’s Gripen. Rafale is by far the closest contender.
Read also: Russia, India motivated to ensure ‘seamless’ defense cooperation: Envoy
path of indigenization
How can the participation of private players in indigenization efforts be maximized? only a few finished pieces of K-9 Vajra-T Guns were imported from South Korea. A drain was identified in India which was then found knock-down kit from South Korea and assembled them in India as per our DAP program. Similarly, in the case of M777 Ultra-Light Howitzer From the US, the same logic applies. However, when we look at Europe, the most popular examples are still the Tatras of the Czech Republic. BEMLA drain has been receiving the knock-down kit from the Czech Republic and assembling it in India for years.
Assembling in India by a conduit looks like compromise But the DAP works well as a route for indigenous defense procurement by increasing the participation of private players as per the 2020 guidelines. While this route must be better explored to enhance cooperation with Europeans, India’s challenges lie in developing an entirely domestic industrial base and using it to positively impact its defense partnership. .
lack of efficient coordination
Recently, France moved back From developing six conventional submarines for India due to Air-Independent Propulsion (AIP) system issues. Not only France but also other original equipment manufacturers (OEMs), including Germany and Russia, backed down.
to retreat to a foreign player Later The RFP has already been floated, reflecting the bureaucratic constraints and lack of coordination in preparing the RFP with clear requirements at the level of Ministries, Armed Forces and Defense Research and Development Organization (DRDO). before this Shortlisting of OEMs. It should be noted that the P-75 project has been ongoing since 2008 when the first RFP was floated but is being late since. Once again, the deadline for the P-75 RFP has been extended to December 2022.
Since defense cooperation between India and European countries is, in many ways, highly fragmented, India does not see the EU as a whole, but as a group of countries. As a result, it engages individually with each, with the exception of France, on a bilateral and case-by-case basis, not collectively and strategically on multiple projects.
Europe, on the other hand, also needs to better understand India’s continental and maritime security challenges and realize that a strong India is in the best interest of Europe’s Indo-Pacific worldview.
Therefore, irrespective of the limitations, practical options will remain at the core of India’s defense industrial strategy, and defense cooperation with strategic allies in Europe is likely to deepen.
The author is an Associate Fellow of the Center for Europe and Eurasia at the Manohar Parrikar Institute of Defense Studies and Analysis. She tweets @swasrao. Thoughts are personal.
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