SIDM SAfrica
SIDM SAfrica
SIDM SAfrica
partnership
between India and
South Africa in
aerospace and
defence
October 2020
sidm.in
Table of contents
1. Overview of aerospace & defence in India 1
2. Defence policies 3
5. Way forward 20
The aerospace and defence manufacturing in India involves three major stakeholders who are the
representative of various aspects of governance, regulations and manufacturing.
1
1.3 Private Sector Units
The private sector in the Indian defence sector com-
prises of the three major set of players in defence
manufacturing across different capability levels.
10000
8000
USD ( millions )
6000
4000
2000
0
2016-17 2017-18 2018-19
DPSU’s OFB Other Private
PSU/JV’s Sector
8
% 23
11
% %
58
%
2
2. Defence Policies
GoI has come out with several policy changes and reforms to standardise procurement process and
develop a robust ecosystem in India. Some of the key policies are highlighted in this section
Lease (Indian) • New category of leasing has been introduced wherein acquisition can be
Lease (Global) made under two sub-categories - Lease (Indian) and Lease (Global).
• It is applicable in case where procurement is not feasible due to time
constraint, or the asset/capability is needed for a specific time or smaller
quantities. It would also be applicable in cases where service life lease
rentals are a better option compared to a one-time acquisition cost.
• This process will:
— obviate the delays in procurement of equipment
— address the budget constraints for capital procurements
— help to gain experience for operational exploitation of equipments.
Design and • This category has been added to give boost to indigenous manufacturing and
Development (D&D)/ R&D in defence sector. Acquisitions under this category refer to systems,
Innovation platforms and upgrades to be designed, developed and manufactured by
Indian vendors.
• Creating an ecosystem to foster innovation & tech in A&D sector by
engaging entrepreneurs, startups, MSMEs through iDex.
• To promote out-of-the-box thinking by encouraging innovators on solving
defence problem statements.
3
2.1.2. Offset guidelines
There have been significant changes in the offset guidelines. The key pointers to note with regards to the offset
guidelines are:
• Removal of offset banking as not many OEMs were opting for this avenue
• Deletion of avenues of discharge for “investment in kind” through non-equity route.
• Offset discharge partially through a Tier-1 sub vendor on case-to-case basis has been permitted.
• Redefinition of the multipliers
• The list of eligible products has been refined as per India’s developmental needs.
2.1.3. Other changes in the DAP 2020 the decision-making matrix to bidder.
Apart from the changes mentioned under the above • Additional category in Make-in-India
headings, there are other changes, though minute, The new category Make-III (Indigenously man-
that must be looked in the overarching structure of ufactured) would encompass subsystems,
the DAP 2020. assemblies, materials, etc., which although not
designed/developed indigenously, are being
• Definition of Indian vendor manufactured in India towards import substitu-
Indian vendor can be a company incorporat- tion for product support.
ed as per Companies Act 2013, a partnership firm,
proprietorship or other type of ownership models • Acceptance Testing Procedure (ATP)
including societies with ownership and control by Clarity on quality assurance and ATP will be
resident Indian citizen(s). However, for the purpose of prepared by the user with vendor consultation
industrial license, additional guidelines and during technical trials. Third party inspection has
requirements as stipulated by the Department for been permitted for acceptance, in accordance with
Promotion of Industry and Internal Trade (DPIIT) must the laid down ATP in the RFP.
be adhered to.
• Committee for Service Quality Requirements
• Price Valuation Clauses (PVC) (SQR)
PVC has been introduced for procurement (> A committee for defining SQRs has been pro-
INR1000 crore) and delivery period (> 60 posed for Service HQs, with members from all
months). It also addresses the price variations stakeholders.
concerns due to fluctuations in exchange rate, inflation
etc. over a period of 5 years for the
OEMs. • Shipbuilding
The chapter has been elaborated to cover acqui-
• Annual Acquisition Plan (AAP) sitions of naval warships of indigenous designs by
Annual Acquisition Plan (AAP) will now be a 02- year the Navy to be constructed by DPSU/private
annual plan with having three sections containing list shipyards. A separate sub chapter has also been
of carry over acquisition proposal, acquisition created to deal with the demand for ship repair.
proposals likely to be initiated for AoN and list out
cases under the ‘Design & Development’ category.
• Provision for miscellaneous issues
Provision has been made for the incorporation of
• Post contract management artificial intelligence, subject matter experts,
The chapter defines the procedures to be ad - indigenous materials and indigenous software
hered for post-contract management, clarifying among others to develop for future needs.
4
2.2. Defence Production and Export ups/industry for import substitution.
Promotion Policy (DPEPP)
• Defence Investor Cell (DICs) will provide hand-
To position India amongst the leading countries in
holding to MSMEs, investors and vendors in
A&D sectors, the Ministry of Defence (MoD) has
defence production for resolving issues with
formulated the draft Defence Production and Export
central, state and other authorities.
Promotion Policy (DPEPP) 20204 as an overarching
guiding document of MoD to provide a focused,
• Services will hand-hold the industry through
structured and significant thrust to defence production
continuous interactions, sharing of information
capabilities of the country for self-reliance and exports.
and arranging visits to repair establishments/ field
It aims to accomplish the following.
depots for better understanding/appreciation of the
requirements.
• Achieve a turnover of INR1,75,000 crore (USD23
billion) including export of INR35,000 crore (USD
2.2.3. Optimise resource allocation reforms
4.6 billion) in A&D goods and services by 2025.
• Carve out of a distinct budget head for domestic
capital procurement and to have an enhanced
• Develop a dynamic, robust and competitive
allocation at the rate of minimum 15 per cent per
defence industry, including aerospace and naval
annum for the next 05 years.
shipbuilding industry to cater to the needs of
armed forces with quality products.
• OFB/DPSUs will be mandated to increase
productivity, enhance quality, reduce costs and
• Reduce dependence on imports and take for- ward
ensure timely execution of orders by optimizing
“Make in India” initiatives through domes- tic design
inventory management, greater vendor out-
and development.
sourcing at all levels, improving skill levels and
overall project management.
• Promote export of defence products and become
part of the global defence value chains.
2.2.4. Investment promotion, FDI and Ease of Do-
ing Business (EoDB)
• Create an environment that encourages R&D,
• Investment promotion would be done for
rewards innovation, creates Indian IP ownership
strengthening defence ecosystem by identifying
and promotes a robust and self-reliant defence
existing gaps and by offering high multipliers
industry.
through offsets obligations.
The different reforms taken under the DPEPP to
• Efforts would be made to attract FDI through In-
realise the above-mentioned capabilities are across
vest India, DIC and licensing process for defence
different segments and categories. They are
industries would continue to be eased in a time
mentioned as follows:
bound manner.
2.2.1. Procurement reforms
• Reform of the productionisation process to cut
• Setting up of a Project Management Unit (PMU),
down the ‘lab to lines’ time conversion of pro-
with representation from the services, to support the
totypes into commercially useful products, by
acquisition process and facilitate manage- ment of
roping in production partners at an early
the contracts.
Technology Readiness Levels (TRLs).
• Creation of a Technology Assessment Cell (TAC),
with representation from the services to design,
develop and produce the systems projected
in the Long Term Integrated Perspective Plan
(LTIPP). In addition, the TAC would carry out the
scan of regional and global technological
capacities and would also render advice to the
services while formulating Staff Qualitative Re-
quirements (SQRs).
5
2.2.5. Innovation General Quality Assurance (DGAQA) by out-
• Efforts would be scaled up for promoting creation of sourcing certain QA functions throughout the
IPs and filing of greater number of patents through value chain.
the previously launched Mission Raksha Gyan
Shakti. • ‘Zero Defect Zero Effect’ is being encouraged for
quality consciousness of the MSMEs assisting
• iDEX would be scaled up to engage with 300 them to adopt self-certification route through a
more startups and developing 60 new technol- facilitated process.
ogies/products during the next five years, and
their procurement under Make-II route of DAP. • Efforts to be made to streamline the airworthi-
ness assurance functions of Center for Military
• Reforms to be made in the offset policy to en- Airworthiness and certification (CEMILAC) and
courage defence investments and acquisition of strengthen its operations.
critical technologies through higher multipliers.
• Creation of testing infrastructure through De-
2.2.6. DPSUs/OFBs fence Testing Infrastructure Scheme (DTIS) by
• Efforts to be made for positioning the DPSUs as aiding the industry to set up common testing
system integrators and create a multi-tier domestic facilities.
supply chain.
2.2.8. Export Promotion
• OFB/DPSUs will be mandated to maximize out- • Defence Attachés (DAs) have been mandated to
sourcing from indigenous sources. promote export of indigenous defence equip- ment
abroad.
• Encouraged to move towards “Industry 4.0” by
using innovative strategies and tools like digital • Export promotion cell to be set up to promote
threading to include Internet of Things (IoT), defence exports would be further strengthened.
timestamping by the use of block-chain technol-
ogy, Artificial Intelligence (AI) etc. • DPSUs/OFBs to have at least 25 per cent of their
revenue from exports including success fee
2.2.7. Quality assurance (QA) and testing infra- earned as targeted by 2025.
structure
• Quality assurance process and delivery would be • DDP would facilitate on boarding of Indian Offset
rationalised and monitored by developing an IT Partners (IOPs) in the discharge of offset
platform with an industry interface. obligations by OEMs.
• Accredited third-party inspection bodies will be • Def Expo and Aero India will be positioned to
promoted to augment the resources of Director showcase defence manufacturing capabilities
and encourage exports.
6
2.3 Recent Reforms by the MoD
In the wake of the COVID-19 crisis, several measures were announced by the Finance Minister, to boost the
defence manufacturing in India. These reforms have been listed under.
Make India a global hub for MRO for defence and civil aircraft by ratio-
nalising tax regime and associated ecosystem
• Major engine manufacturers expected to set up engine maintenance
facilities in India.
• Aircraft component repairs and airframe maintenance could in-
crease from USD100 million to ~ USD300 million in three years6.
5. Press Information Bureau/Highlights of Finance Minister’s 6. Govt plans to make India global hub for aircraft maintenance, Busi-
Stimulus Package – IV, Ministry of finance, May 202020 ness Today, May 2020
7
2.3.1. Licensing and Regulatory Reforms
The Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce and Industry issued a
notification in 2019 that aimed to liberalise the manufacturing of defence components in India. The notification
draws a clear line between the list of defence items that need license authorisation from the DIPP and the ones
that need the license under the Arms Act of 1956. In other words, it states that all items that are of dual use and/or
are components of the larger defence platform, can be manufactured under the ordinary licensing requirements of
the DIPP. This distinguishes these equipments and items from the larger defence platforms (at the end of the
defence value chain), that require stringent testing and checks and hence are to be authorized/licensed only under
the Arms Act, 1959. The notification, in a way liberalises a plethora of items and equipments from the license
regime
The DDP also released a notification in 2017 allowing the exports of items under the "Munitions List" by defining
a new SOP and standardising the process of the items under the Category 6 of Special Chemicals, ORganisms,
Materials, Equipment and Technologies (SCOMET)
8
3. India’s Defence Exports
3.1 Manufacturing capabilities in India capabilities, the raw materials are being processed into
composites like woven carbon and glass-based
In the recent years, defence exports have been a reinforcements, glass filament manufacturing, epoxy
central part of India’s defence manufacturing capa- resin manufacturing, higher grade imide and phenol
bilities with a focus on developing a credible and production, high temperature foam manufacturing and
structured defence export programme that functions as so on. India has dedicated plants for manufac- turing of
an extension of Indian diplomacy. The current resins, reinforcements, fillers, adhesives and
indigenous defence production is estimated to reach consumables for composites.
INR90,000 crore7 (USD12.5 billion) in 2019-20 and in
order to achieve the targeted annual growth rate of 3.1.2 Precision manufacturing
~15 per cent, the MoD is focusing on boosting India is home to a plethora of companies in the
defence exports. precision manufacturing space. The manufacturing
As per the data published by the Stockholm Inter- capabilities currently in India include precision
national Peace Research Institute (SIPRI), in March machined parts, mechanical parts assembly, CNC
2020, India is ranked 23rd in the list of major arms machining, precision lathe work, complex milling
exporters for 2015-20198 . This is the first time India operations in hard metals, cylindrical and surface
has been ranked among the top 25 arms exporters in grinding, electrical discharge machining and surface
the world. treatments and finishing. The manufacturers in India are
Frugal engineering, cost-arbitrage due to the avail- utilising turning and turn mill centres, vertical, horizontal
ability of high-quality competitive engineering talent, IT and five axis CNCs to produce thin walls, tight
infrastructure and labour provides India an opportunity tolerances and intersecting intricate features.
to aim at further improving its defence exports. Given
the potential for defence exports, the MoD targets 3.1.3 Forging and sheet metal work
exports of INR35,000 crore (USD5 billion) till 20249 and Capability of Indian companies in the field of forging
in order to achieve this target, the exports have to grow and sheet metal work has been recognised globally for
at a CAGR of >40 per cent till 2024. its high quality. India has the capability to forge variety
of raw materials like Carbon steel, alloy steel, stainless
India’s defence exports over the years10 steel, super alloy, Titanium and Aluminium. Indian
2500
manufacturers have forging capabilities in hot closed
Export value in USD ( millions )
dies, open dies, cold closed dies, ring rolling, CNC and
2000
VMC machining, gear finishing (hobbing, shaping,
shaving, broaching), robotic welding, heat treatment,
1500
ED painting, tool designing and development.
100
1947.
3.1.4 Special processes for aerospace
0 compo- nents
3
50 Special processes for aerospace components include
0
202.9 624.3 395.0
procedures that alter or change the mechan- ical,
0 1109.3 1215.
2016-17 2017- 2018-19 4
2019- 2020-
chemical or physical parts of products within the
18 20 21 operation or process. They involve a variety of
Total export done In process processes, some of which are listed below:
3.1 Capabilities of defence manufactur-
ing in India • Cadmium and Zinc Nickel Plating
Over the years, the Indian defence manufacturing • Non-Destructive Test
ecosystem has developed its capabilities across • Chromic Acid Anodizing
product groups. The presence of large India primes • Adhesive Bonding
and MSMEs alike, have created a diverse set of ca- • Passivation
pabilities among the Indian manufacturers. • Tartaric Sulfuric Acid Anodizing
3.1.1 Composites
There has been significant growth in composites and
allied technology in India because of wide- spread
adoption in defence along with other com- mercial
applications. Today, India has the capabil- ities in
prepreg moulding, Vacuum Assisted Resin Transfer
Moulding (VARTM/resin infusion, multi-ax- es filament
winding and hand layup. Using these
7. DDP dashboard, Ministry of Defence, March 2020 9.Press Information Bureau, Government of India, Ministry of Defence,
8. Trends in international arms transfer, 2019, SIPRI, March 2020 March 2020
10. Defence Exports, DDP Dashboard, MoD, 2020
9
3.1.5 Shipbuilding
Shipbuilding in India, particularly Defence Shipbuilding,
has come a long way since its fledgling years, when
it began in 1950s. Like in many warships in services,
MSMEs have played a key role in indigenising and retro
fitting many marine grade military components during
repair, refit and Mid Life Upgrades (MLU). Some of
the thrust areas wherein MSMEs in the manufacturing
sector have played and will continue to play a major role
include manufacture of shipboard pipe fittings, valves,
electrical switches, panels and fittings, components
of motors and pumps, insulating material and rubber
components. In the service sector, MSMEs in the
sub-contracting vendor base of yards have played a key
role in pane level hull fabrication/repair, hull outfitting
work, painting work, piping and cabling layouts, accom-
modation space outfitting, installation/repair/overhaul of
engineering and electrical equipment etc.
10
3.2. Defence platforms currently exported
India currently exports a variety of platforms/equipments and systems to countries with friendly relations.
The exhaustive list of these platforms along with their description has been listed by DDP and has been
reproduced below12 .
11
Sr. No. Export Item Description
16 Military vehicles Vehicles for defence in light, medium and heavy-duty segments. Indian
manufacturers provide different power packs for Armored fighting
vehicles and self-propelled guns, power pack for different uses. These
vehicles are used for a variety of applications apart from normal load
carrier to ambulance, recovery, firefighting, refrigerated lorry, fuel and
water bowsers, rocket launcher, radars, missile.
17 Mine Protected Vehi- MPVs can carry upto a dozen fully armed personnel and have a pro-
cle (MPV) vision for gun sights in bullet proof glass from where troops can take on
targets outside. MPVs can move cross-country across most terrain even
while taking fire and hitting back at terrorists.
18 Pinaka Multi-Barrel A high-tech, all weather, long-range, area fire artillery system built on
Rocket Launcher an 8 x 8 chassis with high cross-country mobility. It is fitted with elec-
(MBRL) tro-mechanical outriggers with an auto levelling feature to stabilise the
launcher during launch.
19 Sarvatra bridge sys- An optimally designed scissor launch system with hydraulic
tem system that provides multi span capability.
20 Pontoon Bridge Sys- The bridge has a maximum load carrying capacity of 60 tonnes and
tem can transport military vehicles over water obstacles and marshy
grounds.
21 Communication An Integrated Electronic Warfare system operating in HF and
Integrated Electronic VUHF band.
Warfare System
22 Ground-Based Mobile The System is capable of detection, monitoring, location fixing,
ELINT System (GB- complete analysis of RF signals in the frequency range of 70 MHz to 40
MES) GHz.
23 155-mm Rapid and accurate firing at long ranges to attack the ground targets..
HE-ERFB BT
24 Instavest G6 lnstavest offers protection from handgun ammunition, RCC ‘s and
FSP’s at improved energy absorption and dissipation levels.
25 Advanced Combat Boltless combat helmets are manufactured using special trauma re-
Helmets duction technology.
26 Ballistic Shields Handheld and trolley mounted ballistic shields with large view ports and
transparent armor offer coverage during counterterrorism, insurgency
and riot control operations.
27 Ballistic Protection • Advanced Ceramic B4C (CaraSTOP) Plates
• Tiles for Light Weight Armour.
• Personal Ballistic Protection.
28 High Energy Materials Multi-Mode hand grenade offers advantages over conventional gre-
and Multi Mode Hand nade in terms of safety, dual mode capability and lethality.
Grenade
29 CMDS (Counter Chaff and Flare Dispensing System, CMDS is a micro controller based
Measure Dispensing airborne defensive system. It can be activated either by pilot or RWR.
System)
30 Handheld/Helmet An uncooled thermal sight which can view through dust, smoke, fog, haze
Mounted Night Vision and other battlefield obscurants.
Devices
12
3.2.2 Naval Systems
13
Sr. No. Export Item Description
14 Kavach MOD – II Chaff Designed to counter the threat of various anti-ship missiles by using
Rocket Launcher chaff decoys.
15 ASW Rocket Launcher The ship-based anti-submarine weapon system is capable of firing 212
mm depth charge rockets at submerged targets, in single and salvo
mode, from remote as well as local control stations.
16 Torpedo Launchers The torpedo launchers have triple tube configuration and are installed on
P16A class ships of the Navy. The heavyweight torpedo launchers have
twin-tube configuration and are installed on P15A and P28 class ships.
17 WM-18 Rocket This weapon system designed for beach-clearing by LST class of
Launcher ships before executing amphibious operations.
18 53,000 DWT Bulker Designed and developed for carriage of 53,000 Dwt bulk cargo materi- als,
vessel is accommodated with five cargo holds and equipped with heavy
cranes for loading and unloading cargo.
19 Floating Dock Designed for operation alongside a jetty or with a mooring system, it is
capable of meeting requirements for repairs of warships and sub-
marines.
20 Advanced Composite Designed to provide communication over VLF/MF/HF and V/UHF bands
Communication Sys- on board Naval Ships and Submarines for facilitating ship-to- ship, ship-
tem (ACCS) to-shore and Ship-to-Air communication.
21 Coastal Surveillance The Surveillance System comprises of a network of radars with a cen-
System trally located Control Centre and Communication System for data and
voice connectivity between Radar Stations and control Centre.
22 Combat Management Automates tactical data handling from the ship’s sensors and
System (CMS) provides a decision support system to the command.
23 Electro Optical Fire A compact, 2 axes stabilized, high performance system for control of
Control System - Up- short and medium range naval gun mounts. It has capability of pan-
grade 2 (EOFCS-U2) oramic detection, identification and gun engagement of all types of
surface and air targets.
14
3.2.3 Air Systems
15
3.2.4 Communication Systems
3 Software Defined Developed to meet the required short-range ground to ground, ground to
Handheld Radio ship and ship to ship communication needs with protection against
Electronic Counter Measures (ECM).
4 HF Transceiver LHP An DSP based lightweight 20W HF SSB manpack radio. It provides a
265 complete solution to the short-range communication requirements in the
crowded HF band.
5 VHF FF Transceiver A fixed frequency radio in the frequency band of 30MHz to 87.975MHz.
6 Vehicle Based Satcom The portable HSPA mobile BTS is required to establish mobile com-
For Disaster Manage- munications, in remote locations, where the overall WCDMA network
ment does not provide local coverage.
7 CB/LB Field Telephone A 2-wire analogue field telephone for voice communication.
PTRlOOO+
8 Weapon Sights for A combined device for the Commander of an armoured vehicle or tank
Target Observation for day/night surveillance of targets, terrain and vehicles during battle
and Aiming situations.
9 Multiband Cellular A portable multi-band RCIED barrage sweep jammer, covering cell phone
and BWA Jammer bands and BWA band. The shielding frequency range covers almost all
cell phone bands, including GSM, CDMA, DCS, 3G and also the
broadband wireless access (BWA) band, upto 2.5 GHz.
10 VHF Base Station LVM The Secure VHF Base station radio LVM 342 is useful for ground
342 communication at the platoon level.
11 V/UHF AM/FM Trans- It meets the required long range ground to ground, and ground to air
ceiver LUP 329 communication needs with protection against Electronic Counter
Measures (ECM).
12 Software Defined A compact V/UHF band radio designed to provide fast, reliable
Radio Manpack and secure LOS voice, data and video communication
Other Systems
3 Special Purpose The special steels have improved mechanical properties and better work
Steels ability which are essential for special applications in aerospace, power
generation, nuclear, defence, cryogenic and other general engi- neering
industries.
4 Non-Pressure Bearing Complex-shaped metal parts manufactured by Metal Injection Mould- ing,
Parts of Small Arms as per customer drawings
5 Airframe Structures Highly engineered products, airframe structures for Aircraft
and Engineered Prod-
ucts
16
4. Collaboration with South Africa
4.2 Defence manufacturing industry 4.2.3 High rate-of-use spares and critical
and synergy between India and South stores:
Africa This refers to, among other things:
The Minister of Defence (MoD) and military veterans • Spares for weapons, weapon systems and
of South Arica constituted a defence review unmanned systems.
committee and mandated it to look critically at South • Spares for communications and other
Africa’s defence policy. The document “The South electronic equipment.
African Defence Review” lays down in great details • Spares for combat vehicles and tactical logistic
the strategic importance of a robust defence vehicles.
manufacturing ecosystem and key capability • Spares for combat and transport rotary-wing
development areas of the defence industry. The focus and fixed-wing aircraft.
of South African national support for the defence • Spares for naval vessels.
industry, based on military priorities, will be primarily • Replacement filters for respiratory (individual
local sourcing wherever practical and developing and collective) equipment.
capabilities in the following areas: • Pharmaceuticals, medical stores,
decontamination chemicals and stores, and
4.2.1 Equipment and systems support: spares for medical equipment.
Coherent system of through-life system management, • Field rations, uniforms and general field
from acquisition to disposal, including: equipment.
• Support during the acquisition of foreign-
sourced material. 4.2.4 System integration:
A system integration capability critically allows the
• Commissioning equipment and systems into defence force to acquire optimal sub-systems and
equipment from different suppliers in order to
17
• Develop optimised equipment and systems i. The employment of unmanned systems,
without the cost of developing sub-systems. including integration at relevant levels
ii. The acquisition, integration and support of
• Deploy and support equipment and systems. unmanned systems.
iii. The development and production of
• Integrate complex system environments with unmanned systems in South Africa.
other systems to construct a ‘system of iv. Manufacture of critical, specialised batteries
systems. and other energy sources.
18
As evident from the policies and initiatives taken by promote defence exports from India on a case to
both the countries, there is lot of commonality case basis. It is also exploring wherever feasible, the
between not only the strategic objectives but also possibilities for financing of defence exports from
the future defence requirements. The industry India through EXIM Bank. Similarly, Buyer’s Credit
participants also share a similar set of capability facility of Department of Commerce would also be
requirements and hence it is imperative that the two leveraged and a separate strategy to finance the
countries collaborate in this sector and facilitate exports to friendly countries as well as economically
sharing of learnings and pitfalls between industry weaker countries would be worked out in
stakeholders. consultation with MEA, EXIM Bank, DPSUs, private
sector and other financial institutions.
India being one of the largest aerospace and defence
market in the world, South African defence companies 4.3.3 Favourable regulatory environment
can target this market by collaborating with Indian The world over, defence exports are covered by the
defence manufacturers and jointly develop platform of defence diplomacy between friendly countries. This
mutual interest to both the countries. This will further also contributes to building local operational
both countries interest in being self-reliant. capabilities and, therefore, also enhances
India has a history of successful platforms of global collaborations and joint operations between the forces
standards that were jointly developed by Indian and of both the countries, especially during UN
foreign partners, key examples for which Brahmos peacekeeping missions. The Indian government will
supersonic cruise missile and the Barak 8 surface to facilitate wider engagement with public and private
air missiles. sector manufacturers as well as their joint ventures in
bilateral discussions between the two countries. This
4.3. Benefits of collaboration with India will help the industry of the procuring country due
comfort while importing from India. This will be
South Africa has laid down the importance of a defence facilitated by Indian Embassy and missions in South
industry to support sovereign capabilities, cost effective Africa through its Defence Attaché (DA).
and optimised equipment and system, economic benefit Industry bodies such as Society of Indian Defence
derived from the defence expenditure and maintain an Manufacturers (SIDM)) also helps in organising and
essential level of strategic independence. India shares a initiating foreign delegations, identifying defence
similar understanding and has been the basis of several cooperation opportunities, establishing joint ventures
programs to create indigenous capabilities in defence and identifying suppliers and manufacturers of specific
manufacturing. South African defence manufacturers defence platforms and systems.
and research and development organisations can realise Indian government has made several regulatory
several advantages by collaborating with Indian changes to ease manufacturing and export of
manufacturers. Some of the key advantages are as components and platforms for defence application.
follows
The government of India is also in the process of
establishing Defence Exports Steering Committee
4.3.1 Low cost manufacturing (DESC) under the Chairmanship of Secretary,
Department of Defence Production. The functions of
India has one of the most competitive wage rates in the this Committee would include consideration and taking
world for high skilled labour as well as abundant decisions on cases of export permissions particularly
availability of skilled labour. India’s average daily wage export of indigenously developed sensitive defence
rate in manufacturing is projected to trend around equipment.
INR480 (USD6.5) per day. India has a over 6000
technical and engineering institutes in India with over
2.5 million students enrolling each year in these
institutes.
19
5. Way forward
18
List of abbreviations
Abbreviation Expansion
AAP Annual Acquisition Plan
AI Arti cial intelligence
ALH Advanced light helicopter
ARDE Armament Research and Development Establishment
ASW Anti submarine warfare
ATGM Anti-tank guided missile
ATP Acceptance Testing Procedure
BDL Bharat Dynamics Limited
BEL Bharat Electronics Limited
BEML Bharat Earth Movers Limited
BFSR Battle eld surveillance radar
CAGR Compound annual growth rate
CDS Chief of Defence Staff
CEMILAC Center for Military Airworthiness and Certi cation
CFC Common facilities centre CDS
CDS Chief of Defence Staff
CNC Computer numerical control
CTC Combat training centre
DA Defence Attaché
DAP Defence acquisition procedure
DDP Department of Defence Production
DESC Defence Exports Steering Committee
DESW Department of Ex-Servicemen Welfare
DGAQA Director General of Aeronautical Quality Assurance
DIC Defence Investor Cell
DIPP Department of Industrial Polciy and Promotion
DPEPP Defence production and export promotion policy
DPP Defence procurement procedure
DPIIT Department for Promotion of Industry and Internal Trade
DPSU Defence public sector undertaking
DRDO Defence Research and Development Organization
DTIS Defence Testing Infrastructure Scheme
ELINT Electronic intelligence
EoDB Ease of Doing Business
EOFCS electro-optical re control system
EW Electronic warfare
EXIM Export import
FADEC Fully Authority Digital Electronic Control
FCS Fire control system
FDI Foreign direct investment
FY Financial year
GBMES Ground based mobile ELINT system
GRSE Garden Reach Shipbuilders & Engineers Limited
GSL Goa Shipyard Limited
19
List of abbreviations
Abbreviation Expansion
GSQR General staff qualitative requirements
HAL Hindustan Aeronautics Limited
HSL Hindustan Shipyard Limited
IAI Israeli Aerospace Industries
IC Indigenous content
ICV Infantry combat vehicle
IIT Indian Institute of Technology
IBSAMAR IIBSA Maritime Exercise
INS Indian naval ship
IOP Indian offset partner
IP Intellectual property
IRSS Infrared signature suppression
ISRO Indian Space Research Organisation
ITAR International traf c in arms regulation
IBSA India Brazil South Africa
JV Joint venture
LCA Light combat aircraft
LCH Light combat helicopter
LOS Line of sight
LTIPP Long Term Integrated Perspective Plan
TNDIC Tamil Nadu Defence Industrial Corridor
TRL Technology readiness level
UAV Unmanned aerial vehicles
UHF Ultra high frequency
UN United Nations
UPDIC Uttar Pradesh Defence Industrial Corridor
VHF Very high frequency
VLF Very low frequency
VRDE Vehicle Research and Development Establishment
TNDIC Tamil Nadu Defence Industrial Corridor
19
About SIDM
SIDM’s vision is to catalyse the Indian defence industry to effectively contribute to In- dia’s
national security and become a trustworthy global partner. Its mission is to work closely
with the Government towards enabling the growth of the defence industry and collaborate
with experts from the Armed forces, Academia and Defence industry to optimize the
industry’s development capabilities. SIDM’s values are India First; One Voice and Self-
Reliant for Security.
SIDM facilitates the growth of defence industry in India through policy advocacy support to
the Government, conduct of events which provide a common platform for interaction with
three Armed Forces, DRDO, Ministry of Defence, Paramilitary Forc- es and, also, OEMs
and other industry players, Defence & Aerospace Consultancy Services (DACS), conduct
of Defence Acquisition Management Training Programme, provision of a platform for
business to business connections and serving as a bridge between the industry, the
Armed forces and the government.