Defence R&D (r)evolution in India
The mainstream conversation around Indian defence research and development (R&D) earlier used to center either around successful missile launches or perceived failures such as the INSAS rifle or Arjun MBT. Then came LCA Tejas, now serving the Indian Air Force, but earlier mostly criticized for the purported time delays in its development. However, the iconic visuals of its naval version touching down on INS Vikramaditya brought about renewed vigor for self-sufficiency and indigenization. Budget FY23 announced that 25% of the defence R&D budget would be earmarked for private industry on top of 68% capital acquisitions from the domestic market. At a post-budget webinar held in the backdrop of the Russian invasion of Ukraine, the Prime Minister also emphasized the need to be atmanirbhar or self-sufficient in defence technology. This is a welcome change for a country that strangely prided itself for being the largest importer of defence equipment for many years. The focus on indigenization has been a gradual process with many policy changes recently around procurements, negative import lists (310 items over 03 lists), allowing foreign direct investments to the tune of 74 per cent via the automatic route. This has been further bolstered by the increasing emphasis on startups. Programs such as iDEX (Innovations for Defence Excellence) and Technology Development Fund by departments of the Ministry of Defence were started and expanded. Furthermore, startups such as ideaforge bagged orders worth INR 150 crores for ‘Made-in-India’ drones. In essence, a fledgling military innovation and industrial complex is slowly emerging in the country.
The need for a robust military-industry base is amply clear for any aspiring world power — it provides the means to a powerful military, catalyzes cutting-edge research and innovation, establishes diversified manufacturing and jobs, expands global partnerships, and most importantly enables strategic autonomy. Anyone wondering about India’s tepid response during the ongoing Ukraine crisis should look at the Indian military’s equipment sources for understanding the importance of this autonomy. Therefore, the creation of this ecosystem is long overdue in India. While we are making the right noises, it is imperative that the vision is set out clearly — self-reliance as a guiding philosophy is laudable but it needs to be translated into strategic missions and their associated targets.
Moreover, ecosystem development will entail critical interventions by the government, academia and industry but also require them to overreach their stated charters. What it means is that all entities would need to be flexible and proactive in fostering this ecosystem till it becomes self-sustaining and part of the cultural fabric. It is also important to note that there have been steady advances in local defence development and production over the years. One striking example is the Advanced Light Helicopter (ALH) developed by Hindustan Aeronautics Limited (HAL) which has been deployed by all the wings of the military, various civil organizations, and also exported in small numbers to Mauritius, Nepal and Maldives. Notwithstanding the criticism about the foreign content including the engine, the Dhruv ALH offers India a robust platform for multi-role operations and one which can be extended for new mission profiles. For instance, Rudra a variant of the Dhruv is a weaponized platform while the maritime version comes with its own modifications such as folding rotors. This ability to create bespoke solutions tailored for Indian requirements along with assured maintenance and supplies is another benefit rightly touted by the Prime Minister.
We should also avoid the fallacy of thinking that we can supplant external models of defence innovation such as the US DARPA (Defence Advanced Research Project Agency) or fixate on the achievements of a few countries such as Israel and China. In the same vein, policy makers would be well advised to not direct resources exclusively towards startups but create incentives for other stakeholders such as Public Sector Undertakings (PSUs), small and medium enterprises, large industry, and research institutions and academia. Moreover, some other critical foundational changes which would be required for fostering a strong ecosystem:
Synergize the services
It’s been long felt that the three services — army, air force and navy, are not adequately coordinated in several different arenas including procurement of equipment and supply chain management. Additionally, future force requirements and indigenization are also independent exercises without the requisite jointness. The creation of the post of Chief of Defence Staff (CDS) is a good first step which can be expanded to enhance coordination on the technology development and procurement front as well apart from merely assigning prioritization. At the level of the individual services, a deeper appreciation of the difference between ‘technology’ and ‘product’ needs to be created. Most defence products require a complex interplay of technologies to be effective and both the technology development as well as the product development cycle come with their own challenges. Additionally, there is a tendency to create specifications that are not adequately forward looking and usually include liberal copy-pasting of the ‘best’ attributes of different foreign products. This approach is inherently self-defeating and leads to unattainable goals for the defence R&D organizations and industry.
De-bureaucratize defence R&D
India has a vast network of defence research laboratories, most under the Defence Research & Development Organisation (DRDO). However, the general view is that the research organizations don’t produce the technologies that can be effectively productized for service. Like most government organisations, the focus shifts from technical knowhow to expertise in dealing with government processes. This tendency is quite deeply ingrained in the DRDO. This is unfortunate not only because it casts a shadow on genuine scientists in its various laboratories but also discourages high-calibre talent from joining its ranks. Just creating a system where scientists can easily flow between the DRDO, academia and industry, both in India and abroad will reinvigorate the system. It is also significant that the Government has earmarked 25% of the defence R&D budget for private industry but care must be taken during its disbursal to avoid silos and creation of unequal structures vis-à-vis the DRDO.
Invest in design capabilities
India has a massive pool of skilled engineers which is utilized by large multi-nationals for design and development activities to support their global operations. However, this does not often translate into Indian intellectual property (IP) or even capability of Indian industry. Hence, the shift of focus from just manufacturing to design-led manufacturing within the government augurs well for the defence industry as well. The Ministry of Defence has recently also released a list of 18 major platforms including hypersonic glide vehicles, electric propulsion, low-orbit satellites, for industry led design and development. The MoD should be proactive in making these projects successful by providing extensive handholding apart from funding. Another noteworthy intervention is the plan to set-up an independent testing and certification agency for the defence industry.
Re-imagine role of Public Sector Companies
With the increasing focus on private industry, it is easy to consign to irrelevance the various defence public-sector undertakings (DPSUs) such as HAL, Goa Shipyard Limited (GSL), Bharat Electronics Limited (BEL) and others. However, these remain integral to the ecosystem but with some re-alignment to allow space for private industry to flourish. This could include transferring technology to private companies for advanced system such as the ALH or LCA, or their contract manufacturing. It will not only expand defence production but hasten the transition of DPSUs to become master system integrators that can conceptualize large complex systems and direct the development of sub-systems and components by private industry and R&D laboratories.
Focus on exports
It makes immense sense for a strong Indian ecosystem to become a partner of choice to other countries. Apart from the economic benefits, it will allow indigenously developed systems to benchmark against global competition and lead to more innovation. Since defence is a sensitive sector, it might also be necessary to create a single entity to promote, permit and facilitate exports. The Bayraktar drone has important lessons for India. It has been credited with enhancing the fighting prowess of Ukraine in the ongoing crisis, as well as Azerbaijan in the 2020 Nagorno-Karabakh war. Developed by Baykar, a Turkish defence company, the drone is a low-cost system which is being operated by the Turkish armed forces as well as countries in Africa, Middle East and Central Asia.
Apart from the steps highlighted above, it will be necessary for Indian companies to forge partnerships with friendly countries to imbibe new technologies and ways of working. Trust and security can be ensured via technical and regulatory mechanisms, both of which India has strong capabilities in. The real test will be time and cultural change, as the journey to self-sufficiency even just in critical technologies will be an arduous process. During this time, we might face national security challenges, which could compel us to go shopping abroad for equipment. Regardless of the pressures or hysteria that these situations might generate, the vision of self-sufficiency should not be abandoned. For true security, in an increasingly fractured world, will only be secured by indigenous capability. The defence industry finally seems poised on the verge of rapid expansion. We are on our way but there are still many a mile to go.
