There has been a visible increase in defence exports from India. With the Ministry of Defence (MoD) managing its exchanges better and setting new grounds for governance of end-users, India’s standing in defence on the global front seems to be getting stronger, but challenges remain.
Indian defence exports continue to thrive as a result of continued support by government reforms, according to the Ministry of Defence’s (MoD’s) recently published annual report for fiscal year (FY) 2017–18.
According to the annual report, Indian military exports reached Rs 19.37 billion (USD 277 million) in the first nine months of FY 2017–18 to December 2017. This represents a 75% year-on-year increase over the Rs 11.05 billion in defence exports up until December 2016. This latter figure was detailed in the MoD’s FY 2016–17 annual report.
According to the latest annual report, Indian defence exports in the full fiscal years for 2015–16 and 2016–17 were Rs 20.59 billion and Rs 15.21 billion respectively.
In June 2018, the Department of Defence Production notified a simplified procedure for issue of Authorisation for export of defence items.
As a major boost to Defence export, the Department of Defence Production notified an Scheme for Promotion of Defence Exports on 04.10.2018. The Scheme provides two options:
- Ministry of Defence will certify products “Fit for Indian Military Use” if technically qualified during procurement process but not eventually selected for procurement.
- Potential Defence Exporters can get certification of products by Ministry of Defence (against a given set of specifications) even if product is not required by Indian Defence Forces. The scheme is expected to address a long-standing demand of defence and aerospace industry.
In order to simplify Defence Exports, DDP has further amended the Standard Operating Procedure (SOP) on 01.11.2018. This is third such amendment which has significantly enhanced ease-of-doing business in defence exports. A new software for submission of application by the Industry and for processing the application in the Department has also been launched in the month of October, 2018. The digitally signed export authorisation is accessible to the exporters. The new online system also provides for online consultation with the stakeholders including MEA, DRDO, Indian Army, Air Force and Navy.
Interestingly enough, the increase that the Indian defence has seen in exports happened despite two-thirds of its items being removed from the military goods list. India now has bridging equipment, missiles, warships, Off-Shore Patrol Vessels (OPVs) and Self Propelled Artillery Guns (SP Guns) on its list of export items.
Indian-made OPVs are already guarding Mauritian waters and it is in the process of finalising sale of warships to Vietnam, which has also shown keen interest in buying the BrahMos, the supersonic cruise missile from India. Other than Vietnam, the countries looking at India for exports in defence equipment include Mauritius, Bangladesh, Philippines, Afghanistan and Oman. The United Kingdom (UK) is also looking at developing its defence technology in India for joint exports from India, thus also using the Indian talent and boosting the Indian government’s ‘Make in India’ initiative. Furthermore, India and Spain too have decided to widen their defence partnership.
One of the major defence exports was the delivery of ‘SLNS Sindurala’ advanced large sized OPV to Sri Lanka. GSL was commissioned to built the vessel and it was commissioned by the Sri Lanka Navy on 19 April 2018 at Colombo Port. With the delivery of this vessel, GSL has successfully completed this prestigious export project for constructing two large sized Advanced Offshore Patrol Vessels (AOPVs) for Sri Lanka Navy.