India’s Struggle Between Self-Reliance and Import Dependency
“Why should we import defence equipment? We must be self-sufficient. Why can’t we export our defence equipment to other nations? We dream of an India that is self-sufficient in producing defence equipment using the latest technology.”
These words by Prime Minister Narendra Modi in 2014 encapsulated India’s ambition to transition from being a major defence importer to a self-reliant exporter. However, a decade later, India continues to grapple with its heavy reliance on foreign arms, despite rising defence exports and increased budgetary allocations.
India: The World’s Second Largest Arms Importer
India has consistently ranked among the top defence importers globally. According to a report by the Stockholm International Peace Research Institute (SIPRI) released on March 10, India was the world’s second-largest arms importer from 2020 to 2024, accounting for 8.3% of global imports.
Security concerns and evolving strategic needs have driven India’s reliance on advanced foreign weaponry to modernise its armed forces. Despite the ‘Atmanirbhar Bharat’ initiative promoting self-reliance, India’s complex procurement processes and the technological superiority of foreign equipment continue to make imports a crucial part of its defence strategy.
India Surpasses Saudi Arabia in Arms Imports
Between 2019 and 2023, India overtook Saudi Arabia to become the world’s largest arms importer, accounting for 9.8% of global arms imports, according to SIPRI’s 2023 report. However, there has been a slight decline in Indian arms imports—down 9.3% between 2015–2019 and 2020–2024—reflecting the country’s growing domestic manufacturing capabilities.
Rising Defence Exports and Budget Allocation
While India remains a leading arms importer, its defence exports have seen steady growth. The government’s increased budgetary allocations for the defence sector have further fueled these efforts. However, despite these positive developments, India continues to depend on foreign arms suppliers for critical defence needs.
Factors Driving India’s Defence Imports
- Regional Security Concerns – India’s complex strategic environment, shaped by border tensions with Pakistan and China, necessitates continuous military modernization.
- Limitations of Domestic Defence Industries – While India’s defence manufacturing sector has grown, it still struggles to meet the armed forces’ complete requirements, necessitating imports.
- Immediate Defence Readiness – Urgent military needs often require rapid foreign procurement, as domestic R&D and production are time-consuming.
- Military Modernisation Programs – India’s armed forces are undergoing large-scale modernization to replace outdated equipment and enhance operational capabilities.
- Complex Procurement Process – Bureaucratic delays and inefficiencies make foreign acquisitions a more viable option than waiting for domestic alternatives.
Shifting Arms Procurement Patterns: Declining Russian Influence
India has historically relied on Russia for its defence imports. However, Russia’s share in India’s defence imports has declined from 72% in 2010–2014 to 55% in 2015–2019 and further to 36% in 2020–2024. India is now diversifying its defence partnerships, increasingly sourcing arms from France, Israel, and the USA.
Challenges in India’s Defence Manufacturing
- Infrastructure Gaps – A lack of advanced manufacturing facilities hampers domestic production of sophisticated defence equipment.
- Investment Shortfalls – Public-sector defence firms face chronic underfunding, impacting their R&D performance.
- Bureaucratic Delays – Prolonged procurement processes stifle innovation and slow down domestic production capabilities.
- Public Sector Monopoly – State-owned enterprises dominate the defence sector, limiting private-sector participation and competition.
- Shortage of Skilled Workforce – India faces a deficit of trained personnel in high-tech defence manufacturing, restricting its ability to develop cutting-edge weaponry.
India’s Ambitious Defence Export Target
On February 24, Defence Minister Rajnath Singh announced that India had achieved 88% self-sufficiency in ammunition production. Speaking at IIT Mandi’s 16th foundation day, he reaffirmed India’s goal of reaching Rs 50,000 crore in defence exports by 2029.
Despite several policy reforms aimed at bolstering domestic defence production and reducing reliance on foreign imports, tangible results remain limited. While progress is evident, achieving full self-reliance will require sustained effort, structural reforms, and significant investments in research, development, and infrastructure.
India’s defence dilemma persists: while striving for self-sufficiency, its immediate security needs continue to necessitate foreign arms procurement. Balancing these priorities will be crucial in shaping India’s future as a global defence power.
