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India’s Boost to Defence Manufacturing
Context:
The Cabinet Committee on Security (CCS), led by Prime Minister Narendra Modi, has approved a monumental deal worth ₹7,000 crores for the procurement of 307 domestically produced artillery guns and their towing vehicles.
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- This deal marks a significant step towards strengthening India’s defence manufacturing capabilities, particularly in the artillery sector.
- The approval for the Advanced Towed Artillery Gun System (Atags) was granted on 19th March, setting the stage for the signing of a formal contract by the end of March 2025.
Background of the Atags Project
- The Atags project, spearheaded by the Defence Research and Development Organisation (DRDO) since 2013, is designed to replace India’s older artillery systems with modern, more efficient 155mm/52-calibre guns.
- These guns, with an impressive range of 48 km, are poised to enhance the artillery capabilities of the Indian Army.
- The order for the Atags guns will be divided between the two firms, with Bharat Forge securing 60% of the production, while Tata Advanced Systems Limited (TASL) will be responsible for the remaining 40%.
- Bharat Forge emerged as the lowest bidder for the tender, highlighting the competitive nature of India’s push to boost domestic defence production.
Context and Strategic Importance
- Previous Defence Contracts: This move comes just three months after the Ministry of Defence signed a contract worth ₹7,629 crores with Larsen & Toubro for the procurement of 100 self-propelled K9 Vajra-T artillery guns.
- These K9 Vajra-T guns, which are manufactured with technology transfer from the South Korean firm Hanwha Techwin, will be deployed with a focus on mobility and precision, especially in mountainous terrain like Ladakh.
- Modernisation Strategy: The Indian Army’s artillery modernisation focuses on improving firepower, mobility, precision, range, quick strikes, and survivability.
- Five-Pronged Strategy for Modernisation:
- Equipping artillery regiments with advanced 155mm artillery systems like Atags.
- Induction of missiles and rockets with longer ranges and precise targeting capabilities.
- Development of lethal ammunition to increase the effectiveness of artillery.
- Reorganisation of surveillance and target acquisition units for better intelligence and quicker decision-making.
- Shortening the sensor-to-shooter loop, enabling rapid target detection and destruction.
- The Atags system plays a key role in this strategy, offering India a cutting-edge artillery capability, including the deployment of prototypes for ceremonial events like the 75th Independence Day at the Red Fort in 2022, where it shared the stage with traditional British guns.
Boosting Self-Reliance in Defence Manufacturing
- India has been increasingly focused on achieving self-reliance in its defence manufacturing sector, and this latest deal is a testament to that commitment.
- A series of measures have been implemented to reduce dependency on foreign imports and foster the domestic defence industry, including:
- Phased import bans on various weapon systems and technologies.
- Creating a separate budget for the purchase of locally made military hardware.
- Increasing foreign direct investment (FDI) from 49% to 74%, with a focus on improving the ease of doing business in the defence sector.
- Allocation of more than ₹6.81 lakh crore for defence spending in the Union Budget of 2025, with ₹1.8 lakh crore dedicated to military modernisation.
- A significant part of the modernisation budget—75%—is dedicated to procuring weapons and equipment from domestic sources, furthering India’s goal of “Atmanirbhar Bharat” (self-reliant India).
- Declining Weapon Imports and a Growing Domestic Sector: India has made notable progress in reducing its dependency on foreign weapons, with a 9.3% decline in imports between 2015–2019 and 2020–2024, according to a recent report by the Stockholm International Peace Research Institute (SIPRI).
