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We visited the Defence Expo 2022 (DefExpo) held at Gandhinagar (Gujarat) to understand how the indigenisation of defence platforms/systems is shaping up the overall sector. Below are the key takeaways:

Total 430 systems/platforms displayed by DRDO

430 products including strategic and tactical weapon systems, defence equipment and technologies developed at DefExpo 2022. These included products across engines & propulsion, aerospace & aeronautics, naval weapons, armoured vehicles, advanced electronics, guns & ammunitions, missiles, etc. DRDO showcased advancements in technologies made by its laboratories as well as its partnerships with the industry in recent years while representing a high level of indigenousness in advanced and futuristic defence products and technologies that contribute towards Aatmanirbharta in defence.

The major products displayed in aerospace include LCA MK1, LCA MK2, AMCA, Tapas (Rustom-II) UAV, TEDBF, LCH, LUH, ALH, indigenous multi-role helicopter (IMRH) etc. In engines and propulsion, Kaveri derivative engine (46 kn) for high range combat UAVs, air propulsion system, 25 kn turbofan engine were some of the products displayed.

In missiles, Akash NG, QRSAM, MRSAM, Nirbhay cruise missile, Nag & Amogha ATGMs, Astra air to air missiles, Rudram air to surface, Pinaka rocket system were displayed. In terms of naval weapons and systems, fuel cell based air independent propulsion (AIP) technology for submarines, high endurance autonomous underwater vehicles (AUVs), advanced torpedoes, Shakti EW system, submarine fired decoy, Mareech anti torpedo decoy system were displayed.

Private sector participation to play key role in better execution with more indigenisation

We understand that the government is focused on involving more private players, MSMEs and start-ups for improving overall efficiency in the manufacturing ecosystem of defence platforms. In the FY23 budget, the government had earmarked 25% of the domestic capital acquisition budget for the private sector to encourage them to take part in defence production. Efforts by private sector to develop cutting edge military solutions have also been given a major boost with 25% annual research and development budget reserved for projects spearheaded by start-ups and private companies

The Innovations for Defence Excellence (iDEX) initiative was also launched by the government in April 2018. iDEX aims to achieve self-reliance and foster innovation and technology development in defence and aerospace by engaging industries including MSMEs, start-ups, individual innovators, R&D institutes and academia.

The government has already notified four positive indigenisation lists in major platforms (which account for 411 items) and three lists in sub-systems/components (which account for 1238 items). Indigenisation of these items will increase private sector participation, which will eventually lead to an increase in indigenisation level of major platforms & systems.

HAL showcased 200 items (components used in aircraft & helicopters), which are currently been imported and will be indigenised with private players. The company’s domestic procurement from MSMEs reached ~44% in FY22 against ~32% in FY21.

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