Relevance: GS-3: Challenges to internal security through communication networks, role of media and social networking sites in internal security challenges.

Key Phrases: CAATSA 2017, S-400 missile system, Aatmanirbhar Bharat, Make In India Scheme, Positive Indigenisation list, Defence Acquisition Council, NATO Ally, Scaling Up Indigenous Defence Manufacturing, Defence Corridors

Why in News?

• An amendment has been recently passed in the Lok Sabha calling for an India-specific waiver from sanctions by the US for the purchase of advanced Russian weapons.
• This necessitates Delhi and Washington to find a way around the problem of India’s continuing dependence on Russian weapons.

Key Highlights:

• The issue has acquired greater prominence since the Russian invasion of Ukraine.
• The Countering America’s Adversaries Through Sanctions Act (CAATSA) demands sanctions on states that buy Russian weapons.
• The US imposed these sanctions in 2020 on Turkey, a NATO ally, for purchasing the S-400 missile system from Russia.
• Considering this, the imposition of sanctions by the US on India is largely inevitable with India committed to the purchase of the S-400 from Moscow
• This will undermine an evolving strategic partnership.

How has India responded to the possibility of sanctions from the US?

• India has reiterated that it follows an independent foreign policy and its defence acquisitions are guided by its national security interests.
• The Russian deal for the S-400 was signed in 2016, whereas CAATSA was introduced in 2017. Hence, the deal predates CAATSA.
• India had assessed the S-400 to be the best in its class, even more effective than US systems on offer, and therefore considered it suitable for its national needs.
• Bending to US demands would have been detrimental to India’s interest, despite the two nations sharing a close bond.

Depth of India-Russia relations:

• India has moved away from its traditional non-allied status with a pro-Russia tilt to being close to the US strategically.
• However, it maintains close ties with Russia and works alongside it in the SCO (Shanghai Cooperation Organisation), RIC (Russia-India-China trilateral) and BRICS (Brazil-Russia-India-China-South Africa).
• Currently, more than 65 percent of Indian armed forces equipment is of Russian origin and India continues to bank on Russia for spare parts, though Russian equipment percentages are steadily declining.

Why India can’t afford to alienate Russia?

• Russian-origin equipment in service necessitates support from Russia. For example, ships and planes in India, need Russian spare parts and maintenance help.
• India has also signed a $3-billion deal to lease a Russian nuclear-powered Akula Class submarine, likely to be delivered by 2025.
• Hence, terminating its relations with Russia is illogical and would damage India’s defence preparedness.

India-US Relations at a glance:

• US-India relationship is built on foundational bilateral agreements, military to military engagements, cooperation in enhancement of defence capabilities and now a new emphasis on co-development and co-production.
• Currently, they are close allies in the Quad, which is a diplomatic grouping involving a military element, aimed at containing China.
• India-US defence trade has surpassed $20 billion and is likely to grow further.
• Even within the Quad, Indian military power is only next to the US.
• India and the US have signed basic foundation agreements which involve close cooperation in matters of defence.
• The recent US National Defence Authorisation Act (NDAA) 2021 has focused on the Indo-Pacific.
• Currently, India and the US are collaborating on multiple issues, including Afghanistan.

Why there is need for India to scale up its indigenous defence manufacturing?

• India has the resources to procure its own military hardware and there are many global suppliers in support of India, being a huge market.
• Although a rapid diversification away from Russian supplies can’t be done, yet it is high time for the Indian security establishment to review the changing context of India’s defence ties to Moscow.
• India can work to reduce the impact of Western sanctions on Russia, but dealing with Russia will become trickier for Delhi in the days ahead.
• When the Ukraine war ends, Russia’s focus will be on rearming itself rather than exports to other countries.
• Therefore, India needs to promote indigenisation and self-reliance in defence manufacturing on a war footing.

Various Policy Initiatives of government to promote Indigenisation of Defence industry:

• The Government has taken several policy initiatives and brought in reforms under AatmaNirbhar Bharat Mission in the defence sector.
• Under the ‘Make in India’ scheme, the Centre has notified three lists of projects:
  • Make I (90% government-funded)
  • Make II (prototype development of equipment/system/ platform or their upgrades with no government funding),
  • Make III (collaboration with the foreign equipment manufacturer for production in India).
• The key projects under this scheme include setting up defence corridors in Uttar Pradesh and Tamil Nadu and testing indigenous defence products.
• The ministry of Defence has notified a ‘First Positive Indigenisation list’ of 101 items and ‘2nd Positive Indigenisation list’ of 108 items for which there would be an embargo on the import beyond the timelines indicated against them.
• This offers a great opportunity for the Indian defence industry to manufacture these items using their own design and development capabilities to meet the requirements of the Indian Armed Forces.
• The government announced increasing the FDI limit from 49 per cent to 74 per cent under the automatic route in the defence sector.
• The defence ministry is planning to procure military equipment worth Rs 5 lakh crore from the domestic industries in the next five to seven years in line with its policy of promoting indigenous defence manufacturing.
• The Government of India opened the defence industry for private sector participation to provide impetus to indigenous manufacturing.
• Defence Acquisition Council (DAC) boosted the ‘Make in India’ initiative by according Acceptance of Necessity (AoN) to capital acquisition proposals worth Rs. 7,965 crore (US$ 1.07 billion) for modernisation and operational needs of armed forces.
• The seven defence public sector undertakings (PSUs) were created through the restructuring of the Ordnance Factory Board (OFB) to improve functional autonomy, efficiency, growth potential and innovation in the defence sector.

Conclusion:

• India has no reason to jump from dependence on Russia to total reliance on the West.
• However, the government needs to emphasise on the importance of producing more weapons at home.
• Domestic and foreign private capital is to be invested in India’s arms production.
• Translating the worthy goal into reality demands more urgent and purposeful policy actions in Delhi than what has been taken earlier.

Source: Indian Express

Mains Question:

Q. India needs to review the changing context of its defence ties and must emphasise on the importance of scaling up indigenous defence manufacturing. Discuss.