SOURCE: AFI
In a strategic move to bolster its position in the global arms market, India is set to establish a dedicated Export Promotion Council (EPC) for the defence sector. This initiative, spearheaded by the Narendra Modi administration, reflects India’s ambition to significantly expand its defence exports. The goal is to more than double the current export value from ?21,083 crore as recorded at the end of March 2024 to over ?50,000 crore by the year 2029.
The establishment of a separate EPC for defence is a clear indication of India’s intent to streamline and enhance its export capabilities in this sector. The council will focus on identifying and capitalizing on export opportunities, addressing exporter concerns, and refining strategies to attract more international buyers. This initiative comes at a time when global defence manufacturers are increasingly considering India as a viable location to shift their production lines, recognizing the country’s growing manufacturing capabilities and skilled workforce.
The Modi government’s emphasis on self-reliance (‘Aatmanirbhar Bharat’) has already shown substantial results, with India’s defence exports witnessing a remarkable growth trajectory in recent years. From a modest ?686 crore in 2013-14, the exports have soared to an all-time high, underlining the efficacy of policy reforms and the push towards indigenous defence production. Policies such as the creation of positive indigenisation lists, which mandate sourcing from domestic industry, have been pivotal in this growth.
India’s current export portfolio includes a diverse range of products from helicopters, naval vessels, missiles, to armoured vehicles, which are now being exported to over 85 countries. The private sector has played a significant role, contributing 60% to this export surge, showcasing a shift from the traditional dominance of defence public sector undertakings (DPSUs).
The establishment of the EPC is anticipated to further refine the export process, making it more industry-friendly by simplifying procedures, reducing delays, and facilitating ease of doing business through end-to-end online export authorizations. The council will also work towards enhancing India’s image as a reliable defence partner on the global stage, potentially aiding in securing more lucrative contracts.
Moreover, this move aligns with broader economic objectives, aiming to not only increase foreign exchange but also to position India among the top arms exporters globally. This ambition is supported by the fact that, despite being one of the world’s largest arms importers, India has made significant strides in reducing dependency on foreign equipment and enhancing its domestic manufacturing base.
The strategic implications of this development are profound. By focusing on exports, India not only aims to leverage its defence industry for economic benefits but also seeks to expand its geopolitical influence. As the nation moves towards this ambitious target of ?50,000 crore in defence exports, the new EPC will be crucial in navigating the complexities of international defence trade, compliance with global arms control norms, and fostering partnerships that could redefine India’s role in the international defence ecosystem.