Build defence aerospace

by Ajai Shukla

Business Standard (unsigned edit)

17th Jan 19

The Indian Air Force (IAF), which has long preferred to import rather than build its aircraft, continues to treat Hindustan Aeronautics Ltd (HAL), the country’s only experienced aircraft integrator, like a stepchild. For example, in the recent cases of the Tejas Mark 1A and the HTT-40 basic trainer aircraft, the IAF has discouraged indigenous development projects, especially by delaying the placement of manufacturing orders. This is disrupting the smooth and uninterrupted flow of HAL’s aircraft assembly lines. Then the IAF cites the resultant delay and expense to further criticise HAL and argue for more imports to meet “critical needs”. A new phenomenon is the IAF’s non-payment of bills for aircraft and services already delivered by HAL, adding cash-flow issues to the defence public sector unit’s (DPSU’s) brimming pile of woes. Inexplicably, the defence ministry, which should be overseeing this activity, seems reluctant to intervene. This neglect of indigenous manufacturers, combined with the IAF’s poor force planning, has resulted in its fleet consisting of seven different types of fighters, which will rise to eight when the first Rafales arrive this year. This logistical nightmare in peacetime could become an operational nightmare during war.

In contrast, the navy, which embraced indigenisation whole-heartedly half a century ago and now operates mostly Indian warships, has systematically created the eco-system needed for designing and building warships in the country. It has instituted its own design bureau, a directorate of indigenisation, and ensures that carefully chosen admirals head the four DPSU shipyards that build its fleet. Unlike the navy, which has taken ownership of the process of designing, developing and manufacturing warships, the IAF stays aloof from HAL, preferring to sit in judgment. If the IAF is convinced that HAL is not functioning efficiently, it too should ensure a steady flow of recently retired air marshals to head the organisation and make it conform to the IAF’s requirements.

It is a truism that India has long been the world’s largest importer of defence equipment. However, unlike other large importers such as Saudi Arabia and the UAE, India has a well-developed industrial base, skilled workers and a large and well-qualified pool of scientific manpower. As one of the world’s largest automotive component manufacturers, and as a leading space power, we have demonstrated our ability to conceive, plan and achieve high-technology outcomes. And as the navy has demonstrated, we can do this in the field of defence. If India continues to lag in the field of aviation, this is largely because we have failed to leverage our large defence budget – and the IAF has the largest capital allocations of any service – to build capacity within Indian industry. There is no shortage of good intentions. The defence ministry has ordained that Indian-designed, developed and manufactured weaponry will be top priority for procurement. A “Defence Production Policy” has declared that India will become one of the world’s top five defence producers by 2025, with defence exports multiplying ten-fold to $5 billion that year. But all this will remain just talk until the IAF follows the navy’s lead and starts developing an eco-system of domestic aerospace vendors by ensuring the flow of indigenous projects. No other country with as big a defence budget as ours – be it the US, China, Russia or the European nations – ignores its key domestic manufacturers, as the IAF disregards HAL. This situation must change.