Source: Stockholm International Peace Research Institute (SIPRI)

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Context :

• Recently Stockholm International Peace Research Institute (SIPRI) published a report on global military spending & arms transfers.
• India is the 2nd largest arms importer in the world after Ukraine.

Key Findings from the SIPRI Report:

• India's Decline in Arms Imports:
  India’s arms imports have fallen by 9.3% compared to the previous period (2015-2019).
• Top Suppliers to India:
  • • Russia was still the top supplier of India. but its share has dropped significantly.
    • In the years 2010-2014, Russia supplied 72% of India's arms.
    • But By 2020-2024, this dropped to 36%.
    • France became India's 2nd largest arms supplier. It is providing 28% of India's arms imports.
• Arms Imports by India's Neighbors:
  • • Pakistan's Arms Imports: Pakistan’s arms imports grew by 61% with China is supplying 81% of its total arms.
    • China: For the first time since 1990-94, China is no longer among the top 10 arms importers because of a 64% decline in imports. This means that China has a stronger domestic defense industry
• Top Global Arms Importers:
  • • Ukraine: Ukraine's arms imports increased by 100 times because of its ongoing conflict with Russia.
    • It receives 8% of the world’s arms.
    • United States (US): The US continues to be the largest arms exporter. It is sending weapons to Ukraine, NATO allies, & Asia-Pacific nations.
    • Middle East: Arms imports in the Middle East fell by 20%. But it remains a major importer, with Qatar becoming the 3rd-largest importer

India's Efforts to Reduce Arms Imports:

India has been focusing on becoming more self reliant in defense production to reduce reliance on foreign arms.

What are the Key steps India is taking ?

• Defence Budget (2024-25):
  The Indian government allocated Rs 6.21 lakh crore for defense in the 2024-25 Budget. In this 75% of capital procurement is reserved for Indian manufacturers.
• Self-Reliance in Defence:
  • • The government also launched the SRIJAN portal to encourage Indian vendors to supply defense items.
    • Defence Acquisition Procedure (DAP) 2020 prioritises buying defense equipment made in India over foreign imports.
• Positive Indigenization Lists: India has created 5 Positive Indigenisation Lists to ban the import of certain defense items. It ensures that these are made within India itself.
• Defense Production Record:
  India’s defense production reached a record Rs 1.27 lakh crore in 2023-24. It is marking a 174% increase compared to 2014-15.
• Private Sector Involvement:
  • • India allows 74% Foreign Direct Investment (FDI) in defense manufacturing through the automatic route and 100% FDI via the government route.
    • 21% of India’s total defense production now comes from the private sector.
• Defense Industrial Corridors (DICs):
  2 defense corridors have been set up in Uttar Pradesh & Tamil Nadu. its aim is to boost defense manufacturing in India.
• Indigenous Defense Projects:
  • • INS Vikrant: it is India’s first indigenous aircraft carrier.
    • LCA Tejas: It is an advanced indigenous fighter jet. It is developed by Hindustan Aeronautics Limited (HAL).
• Future Goals for India's Defense Production:
  • • India aims to achieve Rs 1.75 lakh crore in defense production by 2025.
    • The long-term goal is to increase this figure to Rs 3 lakh crore by 2029.

Source: Stockholm International Peace Research Institute (SIPRI)