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Indian drive to increase arms
exports
By Anil Sharma
JAIPUR
- India, a major importer of arms, is pushing hard to
increase its exports of armaments after a decision to
sell weapons to countries that were previously on a
"blacklist", such as South Africa and Israel.
India's total weapons sales have averaged about
Rs1 billion (US$20 million) annually over the years, but
the government has now set a target of Rs10 billion in
the coming few years. This contrasts with the $2.5
billion that the country spends importing weapons and
military spares every year, although $13.54 billion has
been allocated in this year's budget for an overall
upgrade of the military's technology and infrastructure.
George Fernandes, India's defense minister, said
recently that the country had identified several
nations, which were earlier blacklisted, as potential
buyers, adding that the new policy would allow arms
manufacturers to export more sophisticated weapons.
"We have started a drive to find export markets
to achieve economies of scale for our indigenous
armament industry," Fernandes said. "Several countries
have evinced interest in Indian-made electronic warfare
systems, a new rage of 5.56mm small arms, special
ammunition, the Advanced Light Helicopter [ALH],
aircraft and warships," he said.
Previously,
countries such as South Africa and Israel could not buy
Indian arms, but now they are some of New Delhi's major
joint-venture partners - even in strategic armaments. On
Monday, India announced that it is to link with Israel
for the joint marketing of the indigenously produced ALH
in the world market.
In tandem with the
modernization of its defense facilities, India will
attempt to reduce dependence on foreign countries for
spare parts. At present India produces 70 percent of its
defense needs, and the rest is imported. The Defense
Ministry has also allotted Rs3 billion for modernization
of defense production facilities. In January, the
country opened up its ailing defense manufacturing
sector to private investment after more than 50 years of
government control, as part of its broader economic
liberalization program.
"With India's defense
public-sector undertakings coming of age, this is the
right time to grab a share in the international market
to earn valuable foreign exchange," a trade analyst
said. He added that Third World countries could prove to
be a major market for defense exports. Ammunition from
39 ordnance factories is reported to be ready for
export, as are the Light Combat Aircraft, rifles and
propellants.
Production of an indigenous tank
will soon begin at the Heavy Vehicles Factory at Avadi
in southern India, while the navy has launched a project
to build a submarine - and a small aircraft carrier.
"The navy has completed preliminary design work for
their indigenous air defense ship, a smaller version of
an aircraft carrier, which is likely to sail in seven
years," Fernandes said, adding that construction of
Asia's biggest naval facility, at Karwar in the southern
state of Karnataka, is ahead of schedule.
The
trade analyst points out that "it is high time India
entered the global market, as its products are of
international quality and much cheaper than those of
more developed countries. The defense export drive
should be maintained in top gear. The development of
sophisticated equipment, like the advanced Light Combat
Aircraft and electronic and communication systems, can
be expected to give a fillip to defense exports."
As part of the new drive, India will participate
in international defense exhibitions more than in the
past, and also organize similar expositions at home. The
Defense Ministry points out that 32 ordnance factories
have secured 9002 quality certification. And apart from
the 39 ordnance factories, the country has eight defense
public-sector units - Hindustan Aeronautics Ltd, Bharat
Electronics Ltd, Bharat Earth Movers Ltd, Mazgaon Docks
Ltd, Gardenreach Shipbuilders and Engineers Ltd, Goa
Shipyard Ltd, Bharat Dynamics Ltd and Mishra Dhatu Nigam
Ltd.
India's most successful defense exhibitions
to date have been held in Bangalore - the most recent
being in 1996, when more than 100 companies from 12
countries attended.
(©2002 Asia Times Online Co,
Ltd. All rights reserved. Please contact content@atimes.com
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