MODI’fying India: Modi Govt on Defense Sector

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Political Guru

Political Guru (PG) is a silent but excellent performer. He does charities, volunteering, and donations, Often anonymously. He is not from any political background but his analysis and insight about politics can amaze you anytime. On Atul's request, he agrees to write and share his thoughts and taagung family is honored to have him.

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Hidni edition of this article is here

After Part 1, In the second and last part of current govt works on defense sector, we will be getting some details of modernization of Indian armed forces, defense deals, our defense necessities and in the last we will conclude it with defense exercise with other countries.

According to this 12 page report from Stockholm International Peace Research Institute (SIPRI) India is the largest imported of arms. It has significant share of 12% in all defense imports. Other importers are Pakistan and China. China is has done very good on export side as well. India’s arms imports increased by 24% from 2008-2012 to 2013-2017.

Another analysis from Times of India says that India is 5^th largest spender on defense after US, China, Russia and Saudi Arabia. It adds that DRDO and its 50 labs, five defense PSUs, four shipyards and 41 ordnance factories couldn’t do well in many successive governments.

According to the same SIPRI’s another report on Military Services producers, India has it 4 companies in top 100 and they are Indian Ordnance Factory (# 37), HAL (#38), BEL(#64), Bharat Dynamics(#94), which it almost at dismissal level.  

Now the question comes – 4 fights with Pakistan and 1 with China in last 70 years, Not being blessed with good neighbors but with skilled talents, having the second largest army in the world, why India couldn’t be self-reliant in defense manufacturing?

It has a simple reason of policy paralysis from governments in the center.

In one report CAG says that India has weapons and ammunition to survive only for 10 days in the case of fierce battle. Now let us examine what PM Modi did to strengthen Indian Defense.

Progress in Defense sector under PM Modi

Modi Govt chalked out a plan of $ 250 B for army modernization. Here is the presentation about Modernization of Indian armed forces and below I have few highlights from the current govt strategies to make Defense Manufacture Hub –

• In 2005, Kelkar committee recommended the involvement of private companies in defense manufacturing. Nothing could happen until Modi govt came in to the power.

• Most of defense deals in earlier regime used to be through middleman. Bofors, Quattro chi, Christian Mitchel are just few examples.
• In his first budget Modi Govt increased FDI in defense sector from 26% to 49%, though it hasn’t benefitted. Now planning to make it 74% or even more.
• India has signed 182 defense deals in last 4 years, all under Modi Govt.
• In 2016, long pending LEMOA was signed between India and US. Watch this for more information on this

• One report from Economics Times says – PM Modi gets the credit for USD 250 billion modernization plan of Indian Military. It engages “Make in India” program and “Offset” clause in different defense deals with foreign countries.
• This Hindustan Times report evaluates the work done by Modi govt on the defense sector and acknowledges the govt will power to strengthen the army but also showcase the issue of the cash crunch. Probably increase in FDI will help govt on this front.
• Current govt is also in the process of easing the license and its renewal process.  
• From 2000 to 2018, India attracted 35 crores (USD 5M) only in defense. That is again almost nothing.

 Joint Military Exercises –

Military Diplomacy has become an effective tool to establish better diplomatic relations, building trust and confidence among with participating countries. It also facilitates better cooperations, to overcome the language barrier, understanding each other procedures, better coordination and get familiar with new technologies and equipments.

This chart shows the military exercise before and during the Modi Govt. Undoubtedly foreign ties has been strengthened under this regime and in turn it has resulted in more military join exercises.

Source – Wikipedia

I hope, in continuation to Part 1, I could highlight the significant work done by the Modi Govt on modernisation of indian armed forces. Hindi edition will be available soon. See you in the next article about agricultural reforms by this govt in the last 4.5 years and that will complete the series of Jai Jawan, Jai Kisan (Hail Soldiers, Hail Formers).

Stay tuned, Stay Informed and Keep TAAGUNGing !!!