Back to news

August 7, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

India looks to make $25B from defense production by 2025

By:

NEW DELHI — The Indian government on Monday introduced a new draft policy that sets a $25 billion defense production target, including making $5 billion from exports, by 2025.

The Defence Production and Export Promotion Policy is meant to bolster local production of weapons and platforms by developing “a dynamic, robust and competitive” defense industry.

The draft policy also said the Ministry of Defence will set up a technology assessment cell to assess industry's ability to design, develop, produce and re-engineer assembly lines to manufacture major systems such as armored vehicles, submarines, fighter aircraft, helicopters and radars.

“The DPEPP 2020 is envisaged as overarching guiding to provide a focused, structured and significant thrust to defense production capabilities of the country for self-reliance and exports,” the MoD said.

However, some defense experts and analysts are unimpressed with the draft policy. Amit Cowshish, a former financial adviser for acquisition with the MoD, said the DPEPP is high on rhetoric but low on specifics.

India's current defense production turnover is about $11.42 billion. Of this, $9 billion comes from state-owned enterprises and ordnance factories, while the private sector accounts for $2.42 billion. From the total amount, $1.53 billion comes from export business.

It disregards financial reality, which is grimmer now due to the rampant pandemic than was the case in the past,” Cowshish said, referring to the spread of the coronavirus that has hit economies worldwide.

A more productive defense industry in India will depend on how much money the government can spare for local procurement as well as the availability of materiel in the domestic market — two factors that should be a matter of concern, particularly with export targets, according to Cowshish.

Currently, India spends about $18.52 billion annually on weapons and platform purchases, out of which 60 percent is sourced from domestic companies, with remaining supplies coming from foreign vendors.

About $11 billion of those appropriated funds go toward India's 50 state-owned laboratories focused on defense research and development, nine state-owned companies, and 41 ordnance factories.

Conversely, private defense companies, including 3,500 micro and small enterprises, get a little over $2 billion from this.

A CEO of a private defense company in India, speaking to Defense News on condition of anonymity, said the draft policy fails to provide “a clear road map and direction for streamlining defense procurement and production.” He argued that defense production will only improve if there's mutual trust, hand-holding, active participation and patience in the development process between the private and public sector.

Senior executives at the state-owned enterprises Hindustan Aeronautics Limited and Bharat Electronics Limited would not comment on the draft policy, saying they are not authorized by the government to comment on MoD policy issues.

However, Venkatesh Damal Kannan, a former research and development director with Hindustan Aeronautics, said achieving the $25 billion target would be possible if the current capital allocation of $18.52 billion for purchasing weapons and platforms is doubled.

There should also be a willingness from the Indian military to field a larger number of indigenous products, Kannan added, and improved bureaucratic processes in the MoD.

However, Cowshish said the military's arms requirements should not be held hostage by efforts for indigenization.

“In the meantime, especially in situations like the one we are faced with vis-a-vis China, there is no alternative to buying equipment, platforms, ammunition from abroad if what is needed is not available in India,” he said.

https://www.defensenews.com/global/asia-pacific/2020/08/06/india-looks-to-make-25-billion-in-defense-production-by-2025/

On the same subject

  • The Air Force’s new trainer jet is attracting the Navy’s and Marine Corps’ interests

    May 8, 2019 | International, Aerospace

    The Air Force’s new trainer jet is attracting the Navy’s and Marine Corps’ interests

    By: Valerie Insinna NATIONAL HARBOR, Md. — The U.S. Navy and Marine Corps are monitoring the development of the Air Force's T-X training jet, but it may be years before they can launch their own competitions to replace the T-45, officials said Monday. “We're watching the T-X. Obviously the Air Force is going through that process,” Lt. Gen. Steven Rudder, the Marine Corps' deputy commandant for aviation, said during a panel at the Navy League's Sea-Air-Space conference. “At some point, we're going to have to replace the T-45. We're going to have to replace the F-5,” he said, referring to the T-45 Goshawk (used by the Navy and Marine Corps to train fighter pilots) and the F-5 (used to simulate adversaries during exercises). “Our adversary requirement is not going away. It only increases. That's another one that with our Air Force counterparts we're watching closely on many different fronts,” he added. Last year, the Air Force chose a Boeing-Saab team to build a new, clean-sheet trainer, awarding the firms a contract worth up to $9.2 billion. Although the service's program of record is 351 T-X jets and 46 simulators, the agreement gives it the flexibility to buy up to 475 aircraft and 120 simulators. A Navy and Marine Corps buy would add several hundred aircraft to the Air Force's eventual order — a massive financial win for Boeing, which bid extremely low on the T-X solicitation with the expectation of raking in big profits during the production stage. Boeing is set to deliver the first simulators to Joint Base San Antonio-Randolph, Texas, in 2023. In fiscal 2024, the Air Force will have enough simulators and trainers to declare its first squadron as operational. Angie Knappenberger, the Navy's deputy director of air warfare, said the timing of a T-X buy could be “problematic” because of the current schedule of the TH-57 replacement, which is taking priority over a new jet trainer. “Once we're able to accomplish that — the helicopter trainer replacement — then we're going to look more forward to something like the T-45 replacement. T-X would certainly be in the running as a candidate for something like that,” she said.https://www.defensenews.com/digital-show-dailies/navy-league/2019/05/07/the-air-forces-new-trainer-jet-is-attracting-the-navys-and-marine-corps-interests The Navy in January released a request for proposals for the TH-57 replacement, kick-starting a competition with Airbus, Bell and Leonardo that could potentially lead to a contract awarded this year. The service wants to buy 130 helicopter trainers from FY20 to FY23. Knappenberger did not elaborate on why the timing of the T-X program could be challenging for the Navy, but the service plans to finish purchasing new helicopter trainers just as Boeing starts producing and delivering T-Xs to the Air Force. Another key factor may be whether the T-X can be outfitted with the gear necessary for taking off from and landing on aircraft carriers, and how quickly Boeing could complete the engineering work involved. Like Rudder, Knappenberger noted the appeal of buying enough T-X trainers to fill the service's adversary air requirements, saying she's “curious to see” the jet's red air capabilities. The Air Force is also assessing the T-X's ability to conduct other mission sets. “You could imagine a version of the airframe that could be equipped as a light fighter. You can imagine a version that is equipped as an adversary air-training platform,” Air Combat Command head Gen. Mike Holmes told reporters in March. https://www.defensenews.com/digital-show-dailies/navy-league/2019/05/07/the-air-forces-new-trainer-jet-is-attracting-the-navys-and-marine-corps-interests

  • Army National Guard soldiers anxious over new PT test, gear shortfalls

    August 30, 2018 | International, Land

    Army National Guard soldiers anxious over new PT test, gear shortfalls

    By: Kyle Rempfer NEW ORLEANS — Equipment requirements, logistics and training are on the minds of Army National Guard soldiers this year, as the Army prepares to roll out a new gender- and age-neutral fitness test. But while soldiers voice trepidation, the larger Army says it's not going to be an issue. “I think the test is going to be good, [but] my concern in the National Guard is the equipment requirement,” a battalion commander from the Louisiana National Guard said during a discussion with Army Chief of Staff Gen. Mark Milley at the National Guard Association of the United States conference in New Orleans this past weekend. “There's a tremendous amount of equipment that's going to be needed at every company, every armory, every detachment in order to administer the test and to train our troops. Have we addressed a plan to do that prior to the roll-out?” the soldier asked. Milley said the equipment concerns were not just an issue for the Guard, but one across the force. However, the new Army Combat Fitness Test correlates much better to actual combat requirements, and “we'd all be negligent if we didn't train to this [new] test," he said. “In order to do it right there's going to have to be a lot of training the trainers, it has be phased in, we have to make sure the scoring standards are correct, and, as you pointed out, it does require a little bit of equipment," Milley said. The ACFT field tests will begin in October and last one year. It will include 60 different types of battalions from all three components of the total force — active Army, Army Guard and Army Reserve. Additionally, Milley said, Training and Doctrine Command is currently conducting an analysis of all the equipment required throughout the force, how much it will cost and how to distribute the gear to the entire Army. There will be some challenges, Milley acknowledged. “For example, embassies," he said. “We have soldiers at embassies around the world, not in big units but small ones. ... But the equipment is an issue. The Guard will get the same equipment the rest of the Army gets. In the meantime — which means the next year — you can train for it. This isn't rocket science." For instance, grab “a 10-pound medicine ball, throw it over your head. Every gym in America has a 10-pound medicine ball,” he added. Full article: https://www.armytimes.com/news/your-military/2018/08/29/army-national-guard-soldiers-anxious-over-new-pt-test-gear-shortfalls

  • Massive simulation shows the need for speed in multi-domain ops

    September 13, 2019 | International, Aerospace

    Massive simulation shows the need for speed in multi-domain ops

    FORT BENNING, Ga. – The Army tested its current and future equipment and warfighting methods for the potential next war in a massive, weeks-long simulated experiment that wrapped up recently. The Unified Challenge 19.2 experiment in August involved more than 400 participants working with 55 formations, 64 concepts and 150 capabilities, said Col. Mark Bailey, chief of the Army's Futures and Concepts Center's Joint Army Experimentation Division. The exercise ran Aug. 5-23. The simulation allowed Army leaders to “understand some of the complex patterns” that come out of the very complex systems that the United States and its adversaries are using, or developing to use, in future scenarios, Bailey told reporters this week. Much of what was tested couldn't be done in the real world because it hasn't been invented yet. For example, the Army's priorities in the Cross Functional Teams, from Future Vertical Lift to the Next Generation Combat Vehicle, are years away from fielding their platforms to the force, but through mathematical models and algorithms, researchers can plug in the day and play out a very detailed set of events. And the scope of the experiment dove deeper than what a typical tabletop exercise or wargaming scenario might. It allowed experimenters to see down to the small unit level and all the way up to the division and corps level what would likely play out if those formations collided with a near-peer competitor on foreign turf in a battle for territory. Chris Willis, the chief of the Maneuver Battle Lab's Model and Simulations Branch, said that for the first time, experimenters were able to use “nonlethal effects” in a simulation — electronic jamming, cyber-attacks and other methods — to support maneuver warfighting. That helped them gather data on concepts that Army leaders have been considering and theorizing about for years. But the multi-domain operations tools that were used in simulation were not being flung about the simulated battle space by random privates. Currently, the experiments look at having commanders below the brigade level aware of what MDO tools are at their disposal and how to get access to them when needed from higher echelons, which would likely house them. “The brigade would get access to some effects but those wouldn't rest inside of the brigade proper,” said Col. Chris Cassibry, director of the Maneuver Capabilities Development and Integration Directorate's Concepts Development Division. Cassibry emphasized that at this stage it's more important for the brigade commander to understand what's happening across the battlefield and use those effects to execute maneuver. For instance, the idea is that by enabling space and cyber assets, ground forces can have more freedom to maneuver. That was assumed to be the case but the complex simulation has put some data behind the concept for researchers to now analyze. A lot of what presented challenges that will consume commanders of the future was creating “windows of domain superiority,” Bailey said. Converging effects The basic plan is to converge effects, fires or non-kinetic or other types, which create that window. Commanders can plan for that and they do. But to do that at the speed that leaders believe MDO will unfold presents a whole other set of challenges. “Things happen so fast you must have this flexibility to do that in a moment's notice so that when you identify a target on a battlefield and don't have the artillery tube in range you have to quickly identify what else you have in range to hit that target,” Bailey said. And also, to understand that even if you switch “guns” quickly enough to another asset, drone, missile, electronic warfare, that means the new tool you've chosen will now not be used on another quickly emerging target or threat. That's where artificial intelligence must fill the gap, by offering up those menus of options for commanders and identifying the targets so that the human can then fire. Unified Challenge is a twice a year event; this was the second. Though it provides a lot of data, it's not something easily replicable. That means that in the near term, smaller experiments will unfold using some of the lessons learned from the larger experiment, further refining concepts and next steps on many of the ways in which the Army goes after MDO. The next step will be for the Futures and Concepts Center to compile a report of lessons learned and recommendations moving forward with some of the platforms, capabilities and doctrine. That will be delivered to the center director in the coming months, and once approved, spread across the Army to inform smaller scale experiments with portions of the larger effort to develop MDO doctrine and materiel, Bailey said. https://www.armytimes.com/news/your-army/2019/09/12/massive-simulation-shows-the-need-for-speed-in-multi-domain-ops

All news