INDIGENOUS TECHNOLOGIES TO DRIVE INDIA’S DEFENCE MANUFACTURING GROWTH

April 1, 2022 4:23 pm

Opening the defence sector with private sector collaboration will help foreign OEMs to enter into strategic partnerships with Indian companies encouraging indigenous design & development.

In order to make India a global defence manufacturing hub, the government has taken several initiatives under the Make in India programme and brought reforms to promote self-reliance in defence manufacturing. India is among the top five countries with the highest military spending. Government has established two Defence Industrial Corridors, one each in Uttar Pradesh and Tamil Nadu to attract investments of Rs 10,000 Cr in each corridor by year 2024-25. So far, investment of approx. Rs. 3,750 crore in both the corridors by public and private sector companies has been made. The present contribution of private companies is Rs. 18,000 crore in the market of INR 85,000 crore. 

India’s requirements on defence are catered largely by imports. The opening of the defence sector for private sector participation will help foreign OEMs to enter into strategic partnerships with Indian companies encouraging indigenous design & development. The Ministry of Defence has set a target of achieving a turnover of Rs. 1.75 lakh crore in aerospace and defence goods and services by 2024, including exports of Rs 35,000 crore. 

It is no secret that defence spends are among the top three in the world, and this will remain more or less the same, in the near future. As far as opportunities in Defence and Aerospace are concerned, there is plenty of room for growth for domestic manufacturing and sourcing, feels Vineet Seth, Managing Director – South Asia & Middle East, Mastercam APAC. 

Opportunities in defence manufacturing 

Traditionally besides automotive, defence and aerospace has significantly driven the growth of manufacturing in the developing world. The complexity of the parts and various types of materials make defence manufacturing more demanding in comparison to other sectors, says L. Krishnan, Managing Director, TaeguTec India. 

Defence manufacturing is invariably associated with advanced CNC machines and dedicated families of cutting tools based on the type of materials that are used. According to Keshav Khurana, Executive Director, Wohlhaupter India Pvt. Ltd., tax relaxations, moves toward high standards of manufacturing, faster processing times and no middlemen are some of the things that can improve the state of defence manufacturing and promote self-reliance. 

A bulk of the country’s defence and aero equipment have always been imported, but with growing focus on domestic manufacturing as well as an overall increase in domestic technical expertise and innovation. Vineet feels confident that we will be able to create and nurture a sustainable defence and aero manufacturing ecosystem within the next 10 years. The opportunities are likely to be related to UAVs, Advanced Radar/Lidar systems, Avionics as well as traditional defence equipment. There are many retiring fleets in both the Airforce and Navy; this will provide many opportunities for manufacturing growth. The Navy has plans to have a 200 ship fleet by 2027. 

Defence and aerospace manufacturing calls for light weight and high-strength materials. Mostly it is about exotic alloys within these industries. Keshav remarks, in the defence industry, costs need to be kept low, and superior hole quality needs to be produced. 

In many ways, India is dependent on imports when it comes to defence and aerospace but with recent developments the defence ministry has promised that they are promoting local manufacturing and looking forward to India will export defence products is the viewpoint of Swapnil Sansare, Chief Innovation Officer, Divide By Zero Technologies. 

Maulik Patel, Executive Director, Sahajanand Laser Technology Ltd. observes that the government is promoting the development of solutions in India; to maximise economic development, with campaigns like Make in India, AtmaNirbhar Bharat and other initiatives. 

Self-reliance in defence manufacturing 

Working alongside defence establishments, understanding their plans, and aiming for innovation in the required equipment and products, will definitely help promote self-reliance in defence manufacturing. Considering that capital investment in Defence equipment is at an all time high, it is important for industry to engage in a constructive dialogue with the Ministry of Defence through industry development bodies / chapters and contribute to the movement. This is a clear and present opportunity, so the first movers will gain great momentum in the next couple of decades is the view of Vineet. 

Tax relaxations, moves toward high standards of manufacturing, faster processing times and no middlemen are some of the things that can improve the state of defence manufacturing and promote self reliance, feels Keshav. 

Krishnan sees big opportunities for the Indian manufacturing industry to engage in defence and aerospace manufacturing while growing the business, but organisations will have to build machining and process competencies to machine materials like titanium, nickel, cobalt, aluminium based alloys, besides composites. 

Swapnil thinks bringing the buyers from defence and vendors who can supply on one platform, and spread awareness about these requirements and help vendors onboard on defence ordering portals or offline registrations. This can bring great push to self-reliance in defence. 

Defence and aerospace manufacturing corridor 

As the country develops new industrial corridors like the one in Uttar Pradesh, the skills and competencies will develop more rapidly. Generally, any corridor with synergic themes like defence and aerospace will benefit all the participants, says Krishnan. 

Uttar Pradesh has a lot to offer: abundant land, labour, opening up one more international airport and existing defence companies. Most of the manufacturing in India happens in the western and southern parts of the country. This move will help bring focus to the possibilities that Uttar Pradesh offers says Keshav. Defence and aerospace manufacturing are next in line for demand in the future. With the volatile international situations and higher labour costs abroad, India presents a favourable picture to international and domestic manufacturers alike to set up their bases here. 

There are currently two defence industrial corridors planned by the governments of UP and TN, respectively. According to Vineet’s opinion such corridors are a great initiative to promote domain specific manufacturing. However, due care and thought must be given to understand aspects such as availability of qualified and experienced manpower, infrastructure readiness, proximity to defence establishments, proximity to functional ports, secure locations, as well as an existing supply chain system, so as to ensure that such corridors thrive and multiply. It is the collective responsibility of the Government, Local bodies and Industry to make these corridors a resounding success, if true growth is expected in Defence Manufacturing. 

Maulik’s viewpoint is that the aim to build industrial corridors for defence manufacturing being set up in two different states i.e., Uttar Pradesh and Tamil Nadu will assist in the rise of in-house manufacturing and the development of Indian industries. This will lessen our dependence on imports by raising the Indian game in the production of robust machinery. 

Defence manufacturing mostly relates to the special and exotic materials that have high costs and different mining and processing methods. With high raw material costs, the proper upkeep sometimes becomes a hassle for the manufacturing cycle. 

The major challenges with Defence raw material and equipment are majorly related to electronics and access to advanced materials technology. Importing is not a viable option in the long run. Research and Development needs be encouraged in both these fields in terms of indigenisation. In addition to the above, it is important to have a platform that is current and is able to plug in to latest technologies. Vineet is of the view that certain life cycles of products and protocols progress rapidly in the electronic domain and therefore it is critical that design and maintenance consider these vital factors at the design stage and plan for updating and upgradation accordingly throughout the service of these equipment. 

Automation and robotisation needs 

There are of course many critical areas in the manufacture of arms and ammunition, where there could be extensive use of robotics and automation. Early adoption by defence establishments and revamping their existing traditional methods of manufacturing can be a good start to achieve the objective. The high component cost, precise manufacturing and specific handling requirements can be more easily met with automation and robotisation, which requires greater investments, remarks Keshav. 

Defence related automation needs approval on many levels and that needs to be developed with the industry. Swapnil says joint development programs between industry and defence research organisations will help build better automation and robotic platforms. 

Creating defence and aerospace manufacturing strategy 

One of the key requirements is consumption, which already exists, secondly, there needs to be consistent expenditure, which also exists far better than most countries in the world. Country has an excellent talent pool that comes out each year out of technical schools. One of the strategies is to create a sustainable environment of innovation, by identifying top technical schools and inviting them to have a 50 percent mind share on future development. In addition to this, young entrepreneurs and large corporations who are built on technology must collaborate with the defence establishments, remarks Vineet. 

Future trends 

Government of India and Indian defence leadership is committed towards developing local capability in several areas of manufacturing. This will open new vendor opportunities to Industries to scale up, emphasis Krishnan. In the next one decade, a big participation of the private sector in defence and aerospace manufacturing is expected. This will present a huge opportunity for the entire manufacturing Industry. The introduction of privatisation in the defence sector is one of the emerging trends that we have witnessed in recent times which will help in gaining more efficiency and manufacturing of self-reliant systems, highlights Maulik. 

From Swapnil’s point of view, defence and aerospace will not only be limited to metal machine components but electronics, telecommunication devices, carbon fibre components and automation and robot platform development. From a horizon of 20- 30 years down the line, Vineet believes the focus will largely be upon space exploration, space travel and globally coordinated protection of the Earth in general. Longer flights with near zero carbon emissions, bloodless warfare and colonisation of habitable planets will be the extended focus in about a hundred years from now. 

Concluding with future possibilities, Maulik is of the opinion that automation and Robotics might be a major development. With the arrival of MNCs and private sector units, technology will be holding a major part in the manufacturing practices. Defence and aerospace are the future for the manufacturing sector besides automotive. Many nations have already realised the need for investing in this sector. With the right steps in such a direction, positive trends are foreseen in the future for the aerospace manufacturing sector. Above all, a sense of national pride is a foundation to everything else.