The BrahMos order by the Philippines is the first major military export by India

NEW DELHI: In a big boost to India’s defence exports, BrahMos Aerospace has inked a $375 million deal with the Philippines to provide the BrahMos cruise missile to the country’s navy. The Philippines navy will use this as an anti-ship shore-based missile that has a range of 290 km.

BrahMos Aerospace, a joint venture company between India's Defence Development and Research Organisation (DRDO) and Russia, has been continuously upgrading the missile system, making it more lethal against sea and land targets.

BrahMos is one of the potent missile weapon systems used by the Indian military; already inducted into the Armed Forces and used by the army, air force and navy in different variants. It can be launched from submarines, ships, aircraft, or land platforms.

Meant To Deter China

A statement from department of national defence of the Philippines says the BrahMos will provide deterrence against any attempt to undermine sovereign rights in the Philippine Sea — a reference to the South China Sea where China maintains an aggressive posturing.

As the deal is finally through with the Philippines, other countries like Malaysia, Thailand, Vietnam and Indonesia, who have shown interest in acquiring the anti-ship missile, could also come onboard. Malaysia and Vietnam are also claimants in the South China Sea.

Experts are of the view that if India is successful in providing big-ticket military systems to countries in the neighbourhood, it won’t just be a boost for defence exports but will also be a strategic step to counter China’s influence as it provides defence products in Asia, including Pakistan, Bangladesh and Myanmar.

Jump In Indian Defence Exports

There has been a monumental increase in India’s defence exports — jumping from Rs 1,940.64 crore in 2014-15 to Rs 8,434.84 crore, the Ministry of Defence had said in a reply to a Parliament question in December 2021.

While the increase in exports is significant, the BrahMos deal with the Philippines is the first for a major military platform.

The Hindustan Aeronautics Limited (HAL) recently signed a contract with the government of Mauritius for exporting the advanced version of Advanced Light Helicopter (ALH Mark-III). Mauritius already operates HAL built ALH and Do-228 aircraft.

Department of Defence Production lists out Italy, Maldives, Sri Lanka, Russia, France, Nepal, Mauritius, Israel, Egypt, UAE, Bhutan, Ethiopia, Saudi Arabia, the Philippines, Poland, Spain and Chile as India’s export destinations for defence items.

The major defence items being exported listed are personal protective items, Offshore Patrol Vessels, Advanced Light Helicopter and surveillance systems.

In another reply last year to a Parliament question, the defence ministry informed that India exported items to 84 countries. These were not big-ticket military platforms or weapon systems. These were items like teargas launcher, night vision devices, fire control systems, weapon simulators and light weight torpedoes.

Export Target $5 Billion By 2025

India has set a target of exporting defence equipment worth Rs 35,000 crore ($5 billion) by 2025. Aimed at enhancing exports and build a domestic defence industry, the new policy aims at self-reliance looks to achieve a turnover of Rs 1,75,000 crore (25 billion US dollar). The policy also looks at doubling domestic procurement from the Indian industry.

To promote self-reliance and reduce imports, the defence ministry has also come out with a list of 2,851 items put in an import embargo list aimed at saving Rs 3,000 crore annually with a ban on importing these items.

How India Fares With Other Countries

The import ban list seems to be having an impact already. According to a study by Stockholm International Peace Research Institute (SIPRI), there were three Indian companies in top 100 arms companies and their combined arms sales grew by 1.7 per cent.

However, a comparison with China shows how Chinese companies have been racing ahead. “The combined arms sales of the five Chinese companies included in the top 100 amounted to an estimated $66.8 billion in 2020, 1.5 per cent more than in 2019. Chinese firms accounted for 13 per cent of total top 100 arms sales in 2020, behind the US companies and ahead of companies from the United Kingdom, which made up the third largest share,” the SIPRI report says.

It quotes Dr Nan Tian, SIPRI senior researcher: “In recent years, Chinese arms companies have benefited from the country’s military modernisation programmes and focus on military-civil fusion. They have become some of the most advanced military technology producers in the world." NORINCO, for example, co-developed the BeiDou military-civil navigation satellite system and deepened its involvement in emerging technologies.

The SIPRI report says while the United States has once again hosted the highest number of companies ranked in the top 100, Russian arms sales have declined for third year in a row.

“Together, the arms sales of the 41 US companies amounted to $285 billion — an increase of 1.9 per cent compared with 2019 — and accounted for 54 per cent of the top 100’s total arms sales. Since 2018, the top five companies in the ranking have all been based in the USA,” the report said.

India’s Strategy To Beef Up Defence Exports

The Ministry of Defence has proposed a promotion body for exports that can advise the government on various export-related issues, coordinate all export facilitation schemes of the government, increase awareness amongst the industry about various export facilitation measures and promotion of exports through specific marketing efforts in targeted countries.

“The body will identify the suitable export markets in consultation with ministry of external affairs and department of commerce, keeping in view our foreign policy and various international export control and arms control regimes,” the ministry said in a statement.

As part of defence diplomacy aimed at enhancing exports, Indian missions have been asked to promote Indian defence exports. If required, industry delegations would be taken to target countries under the leadership of officials.