Indian Defense Industry
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A bright future for India’s defense industry?
The stars might be aligning for India’s defense sector. Here’s what the government and industry can do to seize the moment.
Brajesh Chhibber and
Rajat Dhawan
India’s defense industry, which has grown
will have to learn to manage some uniquely
substantially in recent years, seems headed for
Indian requirements.
even better days. Growth in domestic demand should continue to be robust, the government has
To build tomorrow’s industry, India’s Ministry
a clear vision for an indigenous defense indus-
of Defence and its contractors might look to
try, the country’s attractiveness to global defense
mature markets such as France and the United
companies is rising due to shrinking global
Kingdom, as well as to developing markets
defense budgets, and there is tremendous export
such as South Korea, and apply some of the ideas
potential in engineering services and compo-
pioneered there. One essential move is to decide
nent sourcing.
on core capabilities and focus efforts on building these in India. Other steps include improving
The way forward is not without some signifi-
the talent market, building skills in the govern-
cant obstacles, however. In particular, the
ment and private companies, and ensuring
government’s new purchasing procedures must
open and inclusive access to defense markets.
prove their mettle, and broadening and shifting the nation’s strategic alignments will be
If the government and its partners embrace the
challenging. For their part, defense firms
challenge, India in 2020 will have a vibrant
A bright future for India’s defense industry?
45
industry capable of meeting not only its domestic
noncompetitive, bilateral agreements. These
needs but also the needs of other nations. That
accounted for approximately 70 percent of
would give India a greater degree of self-reliance,
the total from
A bright future for India’s defense industry?
The stars might be aligning for India’s defense sector. Here’s what the government and industry can do to seize the moment.
Brajesh Chhibber and
Rajat Dhawan
India’s defense industry, which has grown
will have to learn to manage some uniquely
substantially in recent years, seems headed for
Indian requirements.
even better days. Growth in domestic demand should continue to be robust, the government has
To build tomorrow’s industry, India’s Ministry
a clear vision for an indigenous defense indus-
of Defence and its contractors might look to
try, the country’s attractiveness to global defense
mature markets such as France and the United
companies is rising due to shrinking global
Kingdom, as well as to developing markets
defense budgets, and there is tremendous export
such as South Korea, and apply some of the ideas
potential in engineering services and compo-
pioneered there. One essential move is to decide
nent sourcing.
on core capabilities and focus efforts on building these in India. Other steps include improving
The way forward is not without some signifi-
the talent market, building skills in the govern-
cant obstacles, however. In particular, the
ment and private companies, and ensuring
government’s new purchasing procedures must
open and inclusive access to defense markets.
prove their mettle, and broadening and shifting the nation’s strategic alignments will be
If the government and its partners embrace the
challenging. For their part, defense firms
challenge, India in 2020 will have a vibrant
A bright future for India’s defense industry?
45
industry capable of meeting not only its domestic
noncompetitive, bilateral agreements. These
needs but also the needs of other nations. That
accounted for approximately 70 percent of
would give India a greater degree of self-reliance,
the total from