India surpasses target for raising defence procurement from domestic industries

India has surpassed its target for raising defence procurement from domestic industries in 2021-22, even as the Russia-Ukraine conflict renewed the focus on its dependence on the former Soviet Union nation for procurement of military hardware.

The Ministry of Defence had earmarked 64 per cent of its Capital Acquisition Budget for domestic industry in the financial year (FY) 2021-22. It, however, surpassed the target and utilised 65.50 per cent of Capital Acquisition Budget for procurement of defence equipment indigenously manufactured in India, the government stated on Wednesday.

The government had spent 48.68 per cent of the Capital Acquisition Budget for procuring military hardware from foreign companies in 2018-19, 41.89 per cent in 2019-20 and 36 per cent in 2020-21. It now claimed to have lowered it further to 34.50 per cent in 2021-22.

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A spokesperson of the MoD stated that India's bid to lessen its dependence on foreign defence equipment was in line with Prime Minister Narendra Modi's vision for “Atmanirbhar Bhartat”.

The Indian Army commanders are this week assessing impact on supply of defence equipment and spares from both Russia and Ukraine in the wake of the conflict between the two nations. They are discussing ways to deal with any disruption in supply of spares and services.

India's dependence on Russia for military hardware was built over decades. A 2020 report by the Stimson Centre based in Washington DC estimated that 90 per cent of defence equipment, weapons and platforms presently used by the Indian Army had originated from Russia. Nearly 86 per cent of the defence equipment currently in military service in India had origins in the former Soviet Union nation.

India expanded its defence relations with the United States after the landmark civil nuclear agreement of 2008. The US in 2016 designated India as a Major Defence Partner. It will still take decades before the US could actually replace Russia as the primary source of defence equipment for India.

New Delhi's refusal to echo President Joe Biden's administration to denounce Russia for its invasion of Ukraine drew flak in US and other western nations. India obviously refrained from directly criticising Russia in view of its dependence on the former Soviet Union nation for military hardware.

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