The army is aiming to stop all imports of ammunition from FY 2025.
- The army has found indigenous sources for nearly 150 of the 175 ammunition types it uses, and aims to completely cut off imports by 2025-26.
- With gradual curbs on imports, only 5-10% of requirements are met from foreign suppliers.
Reasons for Boost in Indigenous Defence Supply:
- Strategic Autonomy: Aims to minimize reliance on foreign defence imports, enhancing national sovereignty and ensuring security during geopolitical tensions.
- Government Initiatives: Policies like the Defence Procurement Policy and creation of Defence Industrial Corridors have significantly boosted domestic procurement.
- Technological Independence: Local development of critical technologies, exemplified by the indigenous Kaveri engine for the Tejas aircraft, helps avoid international restrictions.
- Positive Indigenisation Lists: The Indian Ministry of Defence has released lists of items that India can manufacture domestically, which will no longer be imported.
- Corporatisation of Ordnance Factories: In 2021, the government restructured the Ordnance Factory Board into seven Defence Public Sector Undertakings to increase functional autonomy and efficiency.
- Private Sector Participation: The Adani Group launched India’s first private sector ammunition-missile manufacturing complex in Uttar Pradesh, indicating significant private investment in defence manufacturing.
Significance of Defence Indigenisation:
- Enhanced Security: Ensures uninterrupted access to military equipment during conflicts or disruptions in foreign supply chains, reducing vulnerability.
- Economic Impact: Supports local industries, creates jobs, and alleviates the financial burden of imports, thereby strengthening the economy.
- Export Potential: Enhances India’s strategic influence and economic returns by developing a global market presence for indigenous defence products and positioning India as a reliable international supplier.
- Innovation and Research & Development: Promotes technological advancements through initiatives like iDEX, which engages startups and academia in developing defence technology solutions.
- Cost-Effectiveness: Indigenisation proves more cost-effective compared to importing military equipment, optimizing national defence budget utilization.
- Prevention of Supply Chain Disruptions: Maintains consistent availability of military hardware, safeguarding against potential supply chain disruptions in times of international tensions.
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