In the post-independence scenario, India had a very little national defence industry. Most of the military weapons and equipment were the ones, that had been manufactured by the British previously. After the Sino-Indian War in 1962, Indian government took up a resolution to develop an effective defence production base on priority basis. Now, as the global defence scenario is rapidly changing, especially after Russia-Ukraine War, India has also stepped up efforts to modernise it defence base. Therefore, the defence industry in India has been experiencing significant and progressive change in the recent times.
Reasons for Modernising India’s Defence Base
The Ukraine War has accelerated the breakdown of familiar geopolitical antinomies, such as Europe and Asia. South Korea has the major supplier of arms to Europe, is at war with itself. South Korea’s involvement with Europe highlights the fact that Asia has ceased to be a passive region for rivalry among the Western powers. Rather, Asian powers have started contributing to the European security. The North-Atlantic Treaty Organisation (NATO) has been stepping up its engagement with Asian powers. China too has been spreading so much propaganda about India’s joining the ‘Asian NATO’ for more than a decade. Actually, South Korea and Japan are keen in bringing NATO into Asia. Both these countries are also taking Asia to NATO’s frontlines with Russia.
Now, the idea that Europe and Asia are separate strategic theatres, is becoming difficult to sustain. The China-Russia ‘No Limits’ alliance in 2022 has also broken that mental block. Consequently, the US has started promoting greater cooperation between NATO and its Asian allies. After the invasion of Russia on Ukraine, Asian leaders from Australia, Japan, New Zealand, and South Korea participated for the first time in NATO’s Madrid Summit in June 2022.
India’s Defence Market Modernisation
India has been coping with the Chinese military challenge on its borders, in seas, and oceans. So, it is reducing its dependence on Russian weapons. The new and dynamic defence engagement between Europe and Asia has paved the way for many opportunities including modernisation of India’s rusty defence industrial base along with its friends.
As for the selling in the markets of the Global South, India does not want any competition with the better-organised and more developed South Korean manufacturers. So, India has been trying hard that Hindustan Aeronautics Limited (HAL) sells its Made-in-India Tejas fighter jet planes to Malaysia and Egypt. However, the deal with Malaysia could not be finalised. Now, India tries to sign a deal with Argentina.
Additionally, India is eager to export arms and there has been some good progress. The export of the medium-range ramjet supersonic cruise missile, BrahMos, to Philippines in 2022 is considered as a major milestone in the country’s evolution as an arms producer because the missile can be launched from the submarines, ships, aeroplanes or lands. The largest destination for Indian arms exports is the US, largely from the Indian supply of sub-assemblies to US Weapon Systems.
Recently, India has also made an agreement with the US on expanding joint defence production and technology should be a pioneer to a wider range of agreements with India’s European and Asian partners. The deal will transform India’s defence production and enhance its arms exports.
Defence budget India’s defence industry is heading for even better days. The defence budget for 2023–24 has been–hiked by 12.95 per cent—from Rs 5.25 lakh crore to Rs 5.94 lakh crore. So, the military can develop and/or buy advanced weapons systems, including new fighter jets, submarines, and tanks. The budget for capital expenditure has also been increased by around Rs 10,000 crore to settle at Rs 1.62 lakh crore.
Similarly, the armed forces’ modernisation budget has also been hiked from Rs 1.52 lakh crore to Rs 1.62 lakh crore. A significant portion of this budget is meant for acquisition of weapon systems and equipment from domestic manufacturers under the government’s ‘Make in India’ programme.
Some future deals of the armed forces The Air Force plans to acquire new fighter aircrafts for inducting next-gen (4.5) fighter planes, in addition to investing in indigenous fighter jets.
The Navy has planned to acquire fighter jets from France; however, the deal is yet to be finalised. In 2022, the French-made, Rafale-M had edged out the US F/A-18 Super Hornet for 26 new deck-based fighters for INS Vikrant, which has been indigenously developed and would partner INS Vikramaditya. The Air Force has already been operating with two Rafale squadrons. If the Navy orders for the maritime version of Rafale, it would be ease of maintenance. The Navy wants to acquire submarines under ‘Project 75 India’.
The Indian Army plans to initiate the process of acquiring light tanks and artillery guns for operational purposes on the Ladakh Front.
South Korea’s Arms Supplies to European Countries
In February 2023, NATO Secretary General, Jens Stoltenberg, visited South Korea and Japan and reiterated that European and Asian security were deeply interconnected. He tried to convey that NATO and Asia could help each other in curbing Russia and China.
Presently, South Korea is sending its arms to Ukraine through third countries or replenishing the arsenals of those sending their weapons to Kyiv. On the other hand, NATO has been insisting South Korean to supply its arms directly to Ukraine. However, the pressure from the Opposition parties of South Korean government and the warnings from Russia have cautioned South Korea about selling arms directly to Ukraine.
South Korea has stopped up its supply of arms to Europe, and Poland alone is expected to buy about US$ 16 billion worth of arms from South Korea. Apart from Poland, other European countries such as Norway and Estonia are looking to South Korea to cope with the perceived security threats from Russia.
In 2022, Korea’s arms exports reached nearly US$ 20 billion. South Korea has achieved the 8th position on the list of arms exporters. It is overwhelmed by the surge in demand for its arms sales, and plans to climb up the list. The capacity to deliver high-quality weapons at low cost and on short order has put Korea in the centre stage.
Other Asian Countries in Arms Supply
Apart from South Korea, Ukraine and Russia are also running through arms and ammunition at a phenomenal rate. Considering the Russian expansionism, the neighbouring countries to the west of Russia are also arming themselves with new weapons. The Western and Russian arms industries are now geared to cope with the massive demand.
Pakistan has also started transferring ammunition to Ukraine as a part of major diplomatic effort to reset its relations with the US, which had strained during the ex-prime Minister Imran Khan. His government wanted to back the Sino-Russian alliance; however, the present government is trying to mend Pakistan’s relationship with the US.
North Korea also has been keen on selling arms and ammunitions. Russia has been importing winter clothing and ammunition from North Korea. Russia has been buying drones from Iran. Turkey, has been supplying drones and other arms to Ukraine and has also been in the lead attempting to create diplomatic engagement between Ukraine and Russia.
It is also a fact that the great Western military-industrial complex has always manipulated poor innocent developing countries into spending their scarce resources on buying arms. However, the power struggles within and between these, poor and innocent developing countries have turned violent leading to the generation of demand for weapons. The western arms industry is meeting the supplies.
Arms Industry in Asia
Given the above global scenario, Asian powers have also become important producers and traders of arms and ammunitions. Now, arms industry is not exclusively western. China has become the 4th largest arms exporter in the world after US, Russia, and France. China, for a while, has been exporting arms to many developing countries, and plans to start its supply of arms to the developed countries as the laws of European countries restrict them from selling arms to conflict zones. Taking advantage of this lacuna, Asian arms manufacturers have started to fulfil the demand in conflict zones.
The Russia-Ukraine War has also alerted Japan to rethink on its security policies. According to Japan’s recent national defence policy, Japan is all set to sell arms to its friends and partners.
Japan had a very powerful arms industry of its own which had made a great impact during the Second World War. However, post World War II, pacifism bottled up its arms makers.
Therefore, Japan has provided some non-lethal military assistance to Ukraine is expected that Japan will become a major exporter of arms like South Korea. Japan wants to boost its weapons sales in the long run by doits expenditure on defence over the next five years. Japan is also tied up with European and American arms companies to develop fighter aircraft, missiles, and drones for domestic, as well as exports, purposes.
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