India makes a stab at global arms selling

[IND151]

Many would rub their eyes as India, the world’s largest arms importer, for the first time showcases an array of its weapons and equipment for export at an international exhibition in South Korea next week, signalling its intention to be a player in the global defence bazaar.


At the Aerospace and Defence Exhibition (ADEX-2013) in the South Korean capital Seoul, the indigenous defence systems will draw the world’s attention to the country’s emerging capabilities, its strength and expertise in design, development and production.

On display at the six-day event beginning Oct 29 will be state-of-the art weapon systems, platforms, sensors, communication systems and equipment designed and developed by the Defence Research & Development Organisation (DRDO) along with its production partners like Tata Power and state-run Bharat Electronics.

Among these would be the Akash surface-to-air missile (SAM), Tejas Light Combat Aircraft (LCA), Pragati surface-to-surface missile (SSM), an airborne early warning system (AEWS), expandable high-speed aerial target Abhayas, and other high-technology systems like sonar, battlefield radars, and identification-friend-or-foe (IFF) systems.

“A large number of products developed by DRDO and produced by Indian industry, including those being displayed at ADEX-2013, have immense export potential,” says the DRDO.

Because of its pacifist strategic culture, India has refrained from exporting arms for several decades after independence. Its defence exports are less than two per cent of the total production of weapons and equipment.

These are mainly indigenously produced surplus small arms and light weapons supplied to some of the neighbours as a goodwill gesture.

But with the new Defence Production Policy facilitating joint ventures with foreign direct investment (FDI), it is expected to result in increased arms exports.

Indian industries are emerging as suppliers to foreign original equipment manufacturers (OEMs), which would help build capabilities and enhance exports.

The change in thinking and policy is significant as the South Asian nation is the world’s biggest importer of weapons. According to a March report by the Stockholm International Peace Research Institute (SIPRI), India accounted for 12 percent of global arms imports during 2008-12.

DRDO chief Avinash Chander says ADEX-2013 will provide India an opportunity for building technology partnerships for research and development and export.

Over the years India has built a large defence industrial base, comprising eight defence public sector undertakings, 39 ordnance factories, a network of high-technology research establishments under the DRDO and a number of private companies working on specific areas.

“No country can progress by importing defence material and equipment,” says Chander.

According to him, DRDO has identified areas such as ammunition for tanks and artillery guns where indigenisation would be carried out in a big way.

“We have attained total indigenisation in sonars and radars,” he said at an international symposium on ocean electronics in Kochi last week, adding that DRDO-made, ship-borne sonars would be exported to Myanmar.

In August, DRDO sold the technology to manufacture an explosive detection kit in the US to an American company.

Also, of late, Indian defence services have moved to induct DRDO products into their systems. This, in turn, has sparked interest from “friendly nations” from Southeast Asia and Africa.

Africa in a few years is said to become a defence market almost at the same level with Southeast Asia and Latin America. Oxford Analytica, a global analysis firm, says Africa has reached “an expansionary period for most of its leading armies” due to “elevated security threat perceptions.”

Defence experts say India has to export weapons to sustain its nascent arms industry as the orders placed by the country’s military are small. Overseas orders are necessary to bring down the production costs.

At another level, India’s presence in ADEX-2013 signifies the growing defence cooperation and strategic partnership between the two countries.

India-South Korean defence ties began in 2005, when the two countries signed a memorandum of understanding (MoU) on defence logistics and supplies. Defence Minister A.K. Antony visited South Korea in 2010 and two MoUs on defence-related exchanges of experience, information and futuristic joint defence technology development were signed.

The same year, the two countries declared a strategic partnership.

Apart from being one of the largest FDI contributors, South Korea has become a big-ticket supplier of weapons to India. It has a wide base of companies like Hyundai, Samsung, Daewoo and Korean Aerospace, and its capabilities in missile development and naval combat system are well acknowledged in the global arms market.

At their third Foreign Policy and Security Dialogue (FPSD) last month, India and South Korea discussed collaboration in defence production and the potential for space and nuclear cooperation.

Both also agreed to step up cooperation in the spheres of maritime and cyber security.

Defence cooperation would figure in the bilateral joint commission meeting November 9 in New Delhi, ahead of the visit to India of President Park Geun-hy, who would be the chief guest at the Republic Day Jan 26.

The defence ministry has approved the long-pending $1.5 billion procurement of eight mine countermeasure vessels (MCMVs) from Kangnam Corp of South Korea, according to consultancy IHS Jane’s.

Kangnam’s Pusan shipyard will construct two MCMVs while Goa Shipyard Limited (GSL) will build the remaining six under a technology transfer.

During ADEX-2013, the defence ministry has planned an Indo-Korean defence meet and an industries meet.

The two countries are celebrating this year the 40th anniversary of the establishment of diplomatic relations.

http://idrw.org/?p=28673

 

[Tuchha]

Isn't it an irony that the worlds biggest arms importer is trying to sell its arms to other countries..lol..

 

[navtrek]

Isn't it an irony that the worlds biggest arms importer is trying to sell its arms to other countries..lol..

Trolling ahh?

 

[damiendehorn]

Please list a few of the items that are available for export that has all the following attributes and not just one or two.

A. A clear Price advantage in its category.
B. A clear technical advantage in its category.
C. Long term reliable system support from the vendor.
D. Is available now.
E. A willing buyer that can afford it.

And most importantly

F. Commitment from the indian government to assist in financing the deal.

 

[damiendehorn]

Out of all those mentioned, the LCA is the least likely to find a export buyer. A flyaway unit price for each one is already over $40m and a mark 2 being a lot more (compared to what else can be bought for the same price), contains systems from multiple countries (US, Israel, UK, France, Russia and India) that it becomes a nightmare politically and replacing systems just add to the already high costs, finally it's just had a really bad public image as a result of it long and tumultuous development period, a real tough sell.

The same thing said for the LCA can be said for the Arjun, in fact this is what happened with the British Challenger tanks, a good tank, but not the best. When they built a follow on challenger 2, it became arguably one of the best heavy tanks in its class, but was horrifically expensive, and because of this didn't have many buyers.

India is unlikely to sell any surface to surface weapons like the pragati, it's more of a tactical battlefield weapon that can be used to target cities. As such it's unlikely india will want to export it.

The others may actually have a market especially the Dhurv, AEWs, ATGMs etc. The most likely items would be electronics and naval systems. Anyway good luck...

 

[seven7seven]

Please list a few of the items that are available for export that has all the following attributes and not just one or two.

A. A clear Price advantage in its category.
B. A clear technical advantage in its category.
C. Long term reliable system support from the vendor.
D. Is available now.
E. A willing buyer that can afford it.

And most importantly

F. Commitment from the indian government to assist in financing the deal.

Yep, in all these categories, India would fare unfavourably with their main perceived competitor, China, though calling India a competitor to China, in military exports capacity, would be an overexaggeration.

It is clear India knows their own strategic weaknesses and shortfalls but lack the technical capacity and strategic infrastructure to build the most advanced and complex weapons systems. Coupled with weak leadership and lack of political will to carry out tough, long-term indigenization plans, in favour of easy fixes of importing Western and Russian weapons, it's hard for any 'genuine' advance indigenous weapons systems to see the light of day in India.

India might try to self-delude themselves by saying projects like the Tejas fighter aircraft and Brahmos missiles are indigenous systems, but it's obvious many advance critical technologies for these systems are supplied by foreign sources. Being reliant on foreign sources for parts is always a no-no when you are trying to sell weapons on the global market. Foreign companies selling these parts will start to view you as a competitor and will become less co-operative. India simply are not self-reliant enough to become a major advance weapon systems seller. For the time being, India will have to be satisfied selling arms at the lower tech scale (relatively), like tank ammunition and artillery. India require far more deveopment of its technological and manufacturing capacity before it can even start to be considered a major player in global arms development and export.

 

[SQ8]

“We have attained total indigenisation in sonars and radars,”

If the Kaveri project bears enough fruit(as a continuation of its lessons); then India will have essentially completed the foundation for breaking away from all suppliers and making a 100% Indian(blueprint to manufacturing process) system. By system I do not refer to Radars , sonars or guns..But a complete body.. such as an aircraft or ship. Where the concept is sketched out by an Indian..and the last rivet is put in by an Indian in EACH and every component of the whole product. That , will truly be a wonderful product for any defence enthusiast to see. Perhaps the AMCA has that potential, but for that establishments like DRDO and HAL will have to be very flexible in letting firms like Tata come into the design process.
It will take fits and starts(and a massive reform in Indian bureaucracy or babus as you say) but when it is possible to procure a cost effective system(such as a Cellular Base station) from within India that is more advanced than what a reasonable(say Huawei) foreign competitor offers; then India can call itself an Asian world power.
Easily possible , and steps do seem underway.. all that is left is to change mindsets, but that is much easier said than done.

 

[damiendehorn]

Yep, in all these categories, India would fare unfavourably with their main perceived competitor, China, though calling India a competitor to China, in military exports capacity, would be an overexaggeration.

It is clear India knows their own strategic weaknesses and shortfalls but lack the technical capacity and strategic infrastructure to build the most advanced and complex weapons systems. Coupled with weak leadership and lack of political will to carry out tough, long-term indigenization plans, in favour of easy fixes of importing Western and Russian weapons, it's hard for any 'genuine' advance indigenous weapons systems to see the light of day in India.

India might try to self-delude themselves by saying projects like the Tejas fighter aircraft and Brahmos missiles are indigenous systems, but it's obvious many advance critical technologies for these systems are supplied by foreign sources. Being reliant on foreign sources for parts is always a no-no when you are trying to sell weapons on the global market. Foreign companies selling these parts will start to view you as a competitor and will become less co-operative. India simply are not self-reliant enough to become a major advance weapon systems seller. For the time being, India will have to be satisfied selling arms at the lower tech scale (relatively), like tank ammunition and artillery. India require far more deveopment of its technological and manufacturing capacity before it can even start to be considered a major player in global arms development and export.

I don't think any one is going to compare indian weapons exports to that of China's. India has been very poor in terms of its defence self reliance, it's always goes for the quick fix of importation, that from a nation whose defence expenditure of $46bn and ranked the fifth largest. In fact look at Turkey, who's defence budget is less then half of indias at $18bn has a far better local defence industry and far higher exports.

Why this difference, well it's to do with the way india work or more to the point in defence production doesn't work. Here are a few:

1. Public sector monopoly in defence production and supply (inefficient and encourages laziness) infact where other nations actively encourage the private sector to take up design and development. In india the relatively advanced and effective private sector entities were actively discouraged.

2. Short term planning (or no planning) in fact ALL indian governments are guilty of this, knee jerk reaction to what ever threats they see, resulting in those quick fix imports. If they actually had a long term vision like the Turks, Chinese, Koreans etc they would actually be a net exporter by now, but that's not the way South Asian mind works.

3. Corruption, this goes hand in hand with the above, those who are the decision makers and involved in the purchase of large contracts, have no incentive to encourage local production. Politicians don't matter what side of the political divide are making commissions and black money hand over fist, that's the fact in all importing nations, so why would they change?

Until these and other factors I would rather not bore you with change, the indian defence exports will be limited from their potential.

 

[armchairPrivate]

^^^It is because you guys (the military) kept wanting the most fancy spancy toys - right now, like those kids that stayed overnight lining up for the new iphones.
If you don't have a big head, don't wear a big hat.
Know you limit. In this case, know how much is in your wallet.
If you keep on doing like this, you will end up poorer and poorer. Consider how quickly you will exhaust your ferex.

 

[damiendehorn]

If the Kaveri project bears enough fruit(as a continuation of its lessons); then India will have essentially completed the foundation for breaking away from all suppliers and making a 100% Indian(blueprint to manufacturing process) system. By system I do not refer to Radars , sonars or guns..But a complete body.. such as an aircraft or ship. Where the concept is sketched out by an Indian..and the last rivet is put in by an Indian in EACH and every component of the whole product. That , will truly be a wonderful product for any defence enthusiast to see. Perhaps the AMCA has that potential, but for that establishments like DRDO and HAL will have to be very flexible in letting firms like Tata come into the design process.
It will take fits and starts(and a massive reform in Indian bureaucracy or babus as you say) but when it is possible to procure a cost effective system(such as a Cellular Base station) from within India that is more advanced than what a reasonable(say Huawei) foreign competitor offers; then India can call itself an Asian world power.
Easily possible , and steps do seem underway.. all that is left is to change mindsets, but that is much easier said than done.

Don't rely too much on the Kaveri, we all know how difficult it is to develop a large jet engine, there isn't much that is technically more complex. The equivalent western engines like the F404 was already available and in production when India started to develop the LCA, instead india decided to develop its own engine and fighter TOGETHER without really thinking if the resources were in place and over extended themselves. You can't make a complex fighter engine on the cheap, well at least not on the initial budget they started with (bad project planning).

The problem with the Kaveri development, was the continuous changes in the design goals and the lack of resources available at the GTRE to achieve those goals. It may take another 7-8 years for Kaveri to achieve the thrust goals that the current F414 has right now, does that mean they should give up, NO, just learn from previous mistakes and don't over extend beyond your capacity.

We South Asians talk more and do less, india needs to learn to keep defence projects quite, and only talk about them when they are near to maturity like the Chinese. For example don't mention the AMCA, just start doing the design and development quietly and in the meantime finish the LCA mk1, mk2 and may be mk3, and when you have a prototype AMCA ready, then let the world know. LONG TERM VISION.

 

[damiendehorn]

^^^It is because you guys (the military) kept wanting the most fancy spancy toys - right now, like those kids that stayed overnight lining up for the new iphones.
If you don't have a big head, don't wear a big hat.
Know you limit. In this case, know how much is in your wallet.
If you keep on doing like this, you will end up poorer and poorer. Consider how quickly you will exhaust your ferex.

If you read my article and understood it you'd know that's exactly what I was saying. The military will always want the best, the most expensive, all the bling, if your ministers and gov is unable or unwilling to put its foot down and so lily livered that it can't tell the generals, admirals and air Marshall's that long term national interests come first before fancy toys, then don't blame the military.

Any way getting late, the simple solution to indias problem is for what ever government that come to power to instigate a policy to reduce defence import by say 10% each year, privatise as many of the public defence utilities and open up to the private sector.

 

[SQ8]

only talk about them when they are near to maturity .

I suppose that is one particular trait common across the borders.

 

[IND151]

If you read my article and understood it you'd know that's exactly what I was saying. The military will always want the best, the most expensive, all the bling, if your ministers and gov is unable or unwilling to put its foot down and so lily livered that it can't tell the generals, admirals and air Marshall's that long term national interests come first before fancy toys, then don't blame the military.

Any way getting late, the simple solution to india's problem is for what ever government that come to power to instigate a policy to reduce defence import by say 10% each year, privatise as many of the public defence utilities and open up to the private sector.

Things are changing and I believe in coming years we will be among top 10 weapon exporters.

We should concentrate on export versions of tactical missiles (like Pragati SRBM), munitions, Sudarshan LGB, Abhay IFV, Radares, Sonars, Military SUVs, OFB made Mortars etc.

Then gradually we should aim for export of more powerful weapons like Arjun Tank, Kamotra class corvettes, LCH etc.

We have already sold Dhruvs to some nations.

We need proper planning and execution along with more chance to private players.

 

[kaykay]

I hope in next 15-20 years we'll bring down our defence imports to 20-30% of our requirement from 70% today. Alot of developments in pipeline at once.

 

[Water Car Engineer]