Reforms to Make Armed Forces Atmanirbhar

Context: Amid border tensions, an endeavour has been made to align e Defence Acquisition Procedure (DAP) 2020 with the vision of Atmanirbhar Bharat and empower the domestic industry through the Make in India initiative.

Challenges to Indian Defence Industry:

• India is the 2nd largest importer of weapons and equipment’s in the world ($100 billion), as per Stockholm International Peace Research Institute (SIPRI), 
• Lack of investments: Neither Defence Research and Development Organisation, nor any DPSUs, nor the private defence sector have invested adequately in Research & Development.
• Failure of raising the Foreign Direct Investment (FDI) limit: to 49% in 2015 restricted our indigenisation efforts.
• Indefinite strike at the Ordnance Factory Board (OFB): by the trade unions after the decision taken by the government to corporatize OFB.
• Lack of professionalism: At present, officials dealing with these crucial issues in the Ministry of Defence are not professionals with experience, but are transients with little experience. 

Measures taken by the government to support Defence Industry:

• Defence Acquisition Procedure 2020: It has included provisions to encourage FDI to establish manufacturing hubs, both for import substitution and exports, hence protecting the interests of our domestic industry. 

• Under Atmanirbhar Bharat Abhiyan:

• Raised FDI limit: in defence manufacturing under the automatic route is raised from 49% to 74% and will provide opportunities to local manufacturers.

• Faster Decision making: through setting up of a project management unit to support contract management and realistic setting of General Staff Qualitative Requirement (GSQR)

• Corporatization of the OFB: in order to make it more competitive and self-reliant. 

• Proposal for a separate budget: for domestic capital procurement is a step to boost the indigenous defence industry. 
• It will keep a check on reducing the defence import Bill, should encourage domestic manufacture by facilitating them to assess the exclusive government allocation.
• Simplification of GSQRs process: with greater emphasis on identifying verifiable parameters based on analysis of comparative equipment available in the world and domestic markets. 
• This included simplification of trial procedures with an objective of nurturing competition based on the principles of transparency, fairness and equal opportunities to all and not as a process of elimination. 

Way Forward:

• Take caution in imports: Our imports should be in sync with our existing capability and not the futuristic envisaged capability as it can completely block the import route to procure these items even in times of crises. 

• Avoid Reservation in employing defence personnel: in pivotal procurement roles.

Conclusion: With rising tensions along the northern borders, there is an urgent need to push for these reforms pending for decades for better defence preparedness.