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India Ready to Spend More on Defence Equipment
In financial year 2023, India plans to allocate ₹2.71 lakh crores ($33 bn) towards defence equipment, with 99 per cent of the equipment being sourced domestically.
This trend of shrinking defence imports has caused concern for the US and Russia, who were previously major suppliers to India. The Indian Armed Forces will be procuring weapons worth ₹70,500 crores ($8.7 bn), all of which will be made in India.
The Indian Navy's proposals will receive over ₹56,000 crore ($6.84 bn) and include locally-made BrahMos missiles, Shakti Electronic Warfare systems, and maritime utility helicopters. The Indian Air Force has approved the Long Range Stand-Off Weapon, to be integrated on SU-30 MKI aircraft, and the Indian Army will procure 155mm/52 Caliber ATAGS along with High Mobility & Gun Towing Vehicles. The Indian Coast Guard will receive Advance Light Helicopters MK-III from HAL.
India has reduced its defence imports by 11 per cent between 2013-17 and 2018-22, largely due to efforts to diversify arms suppliers, a complex procurement process, and the replacement of imports with locally-designed weapons. In FY22, domestic procurement reached 68 per cent. India is also increasing its defence exports, which are set to reach ₹17,000 crore ($2.1 bn) in FY23. Export deals include a $155 million contract for 155-mm artillery guns and a deal with Armenia for India's Pinaka missiles.
India is becoming a major defence-manufacturing hub, supplying equipment and ammunition to over 80 countries. India's emergence as a global supplier is demonstrated by its supply of aero-structures for Boeing's AH-64 Apache helicopters, a deal signed by Airbus to build C-295 medium-lift transport aircraft, and a partnership with Lockheed Martin to make wing sets for the F-16 Block 70 fighter aircraft. The Indian Army has also recently handed over 159 indigenously-developed vehicles and equipment for a UN peacekeeping mission in Abyei.
India's defence industry is projected to achieve manufacturing worth ₹1,75,000 crore ($21.4 bn) by 2024-25, including defence exports of ₹35,000 crore ($4.3 bn). As a result, India's growing defence capabilities are attracting attention from global powers.