Self-Reliance In Defence Production

Defence Industry: About the study

• Australia, China, India, Indonesia, Japan, South Korea, Malaysia, Pakistan, Singapore, Taiwan, Thailand and Vietnam were the countries selected for the study.
  • These countries have the highest Defence Industry military spending in the region.
• China occupies the top place, Japan is second, South Korea is in third place, and Pakistan is at number 8.  Self-reliance of countries is measured until 2020.
• The study makes use of three indicators of self reliance in each country:
  • Arms procurement: Importing, licensing and domestically producing arms as a proportion of the government’s total procurement.
  • Arms industry: A study on the five largest arms companies in each country, ranked based on sales of arms and military services in 2020 to both domestic and export customers.
  • Uncrewed maritime vehicles: It covers both uncrewed surface vehicles (USVs) and uncrewed underwater vehicles (UUVs). The study provides a qualitative understanding of how countries are engaging domestic research institutes and firms to produce such cutting edge systems.

Defence Industry: Significance of the Study

• Selection of maritime domain: The study involved maritime domain because the Indo-Pacific region is a “maritime theatre”, and most of its clashes involve navies.
• Trust and confidence building: Understanding and determining the extent of self-reliance in the Indo-Pacific region is crucial for trust and confidence-building among countries.
• Defence allocation: Countries in the region have seen increase in allocation for defence procurement.
  • Eighteen arms manufacturing companies of the region were ranked among the world’s largest arms companies in 2020.

Defence Industry in India: Status

• Defence Industry Imports: India has been ranked as the second largest importer of arms for its armed forces in 2016-20. India is dependent highly on foreign imports.
  • Many of the required arms are produced under licence or as components for its domestic production.
• Domestic production: Domestic arms companies supply about 16 per cent of its total procurement. Local production along with licensed production has pushed India to fourth position in the list.
• Domestic companies: Hindustan Aeronautics Ltd, Bharat Electronics, Indian Ordnance Factories, Mazagaon Docks and Cochin Shipyard are some of the major Indian arms servicing companies.
  • Ashok Leyland is the only company ranked in the top 50 in the Indo-Pacific.
• Maritime projects: Larsen & Toubro has been developing AUV prototypes on its own and in collaboration with foreign partners.
  • Central Mechanical Engineering Research Institute is considering development of AUV prototypes.

Defence Industry: Stockholm International Peace Research Institute (SIPRI)

• SIPRI is an independent international institute dedicated to research into conflict, armaments, arms control and disarmament.
• Vision/ objective:
  • It aims to establish a world in which sources of insecurity are identified and understood, conflicts are prevented or resolved, and peace is sustained.
• Mission:
  • Carry out research and activities on security, conflict and peace;
  • providing policy analysis and recommendations;
  • promote dialogue and build capacities;
  • ensure transparency and accountability;
  • provide authoritative information to global audiences.

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