Key Aspects of India’s Arms Export Policy amid Military-Industrial Complex Reform

Abstract

The study examines the key features and areas of the Bharatiya Janata Party (BJP) government’s policy aimed at boosting the export of weapons, military and special equipment (WMSE) within the broader strategy of reforming the Indian military-industrial complex (MIC). The long-term goal of the Indian government is to achieve “strategic autonomy” in the defence sector. In the short term, Indian arms exports serve as the driving force behind the “Make in India” and “Self-reliant India” programmes - pivotal components of Prime Minister Modi’s political agenda. The significant amplification factor for India’s export ambitions has been conditioned in part by the escalating border tensions with China since 2017. The export of WMSE is emerging as a crucial tool to strengthen India’s bilateral relations with countries in the Asia-Pacific region to counterbalance China. Nonetheless, to propel India into the group of the world’s leading arms exporters, as well as to gain full “strategic independence,” may be hard to achieve even in the long run. Despite systemic reforms in the military-industrial complex, efforts to engage private businesses and attract foreign capital, a number of challenges impede the growth of the defence industry and the export potential of the Indian military-industrial complex. These include the inadequate development of India’s manufacturing sector, dependency on foreign technologies, and insufficient funding for military-technical advancements. At the same time, the policy of supporting defence exports and reforming the MIC has been a stable trend in the strategy of the BJP government, playing a crucial role in the fulfillment of its short, medium and long term goals.