Indian Defence Industrialization: Provide Private Sector With Right Incentives & State Support

But with support, they can deliver as they have in the past. Companies such as Godrej Industries and L&T have delivered critical components in strategic programmes like Brahmos and ATV respectively while companies like Tata Power SED, Mahindra Defence System and many others have a relatively healthy track record of defence supplies.
Australia, china, defence, defence news, DRDO, France, Germany, Japan, Military, Philippines, Russia, Taiwan, UK, US, HAL, MOD, Boing, Bharat ForgeCompanies like Dynamatic Technologies, Astra Microwave, Bharat Forge show promise while many companies like Punj Lloyd and Kineco Kaman recently obtained licences to manufacture different defence items, in addition to over 230 licence holders.

Although five out of the nine defence public sector units (DPSUs) are naval system producers, in the case of submarine production, only Mazagon Dock Limited (MDL) has some capacity. MDL is otherwise overburdened with the Scorpene project, which is facing delays. It would thus be interesting to watch which Indian companies will be invited for the submarine tender.

At the moment, prospects for L&T look bright. It has the capacity to bring in foreign partners (like the Tatas who are joining hands with Boeing to participate in Avro replacement project) like Nevantia, HDW, DCNS or Hyundai Heavy Industries. A meaningful collaborative or consortiumbased approach could always be initiated by Indian companies to prove their worth in programmes like P75-I. Last but not least, can Indian companies be a part of the global supply chain? The answer is again yes.

All categories of Indian companies can demonstrate their capacities in component, sub-system or system supplies, only if they are consciously encouraged by the state. Companies like Dynamatic are already a part of the global supply chain, with many more waiting in the wings.None of the large Indian companies is a true system integrator or defence dependent (like Lockheed or Raytheon), but they can graduate to that level over a period of time, if they are provided with the right incentives, a conducive atmosphere and prudently crafted state direction.

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