Reports of equipment falling into the wrong hands have come up

The Ministry of Defence is increasing its oversight of defence equipment manufacturing in India and placing a strong emphasis on strict adherence to end-user certification rules for exports. This is in direct response to reports of defence equipment ending up in unauthorised hands, a situation that the Ministry is determined to rectify, as reported by The Economic Times.

India’s defence sector has not only witnessed a significant surge in arms and weapons production for both domestic use and international export, but it has also taken proactive steps to increase oversight. This strategic move by the government, in line with global trends, is a clear demonstration of India’s commitment to prevent unauthorized use of weapons, a concern that the Ministry is addressing.

As of the end of the financial year 2023-24, 606 industrial licenses have been issued to 369 companies in the defence sector, according to data from Invest India. It aligns with the Ministry of Defence's ambitious goal of reaching a turnover of ₹1.75 trillion in aerospace and defence manufacturing by 2025, including exports totalling ₹35,000 crore.

In fiscal 2022-23, India’s annual defence production soared to ₹1.09 trillion, showcasing robust growth. The private sector played a significant role, contributing ₹21,083 crore, thereby driving this expansion. Notably, exports surged to ₹21,083 crore in the fiscal year 2023-24, with the private sector emerging as a key driving force behind this remarkable achievement, instilling optimism in the country’s economic growth.

The Ministry plans to establish an internal portal to monitor the consumption patterns of defence companies’ imports. It will specifically focus on critical items such as explosives and primers. A senior defence ministry official mentioned they want to implement an internal portal to monitor imported items to prevent them from falling into the wrong hands. The official also acknowledged that there had been instances where reports indicated that items had fallen into the wrong hands but did not provide specific details about these incidents. This portal will be crucial in enhancing security and preventing potential misuse of these critical materials.

The official emphasised the critical importance of meticulously managing arms exports, stressing the need for industry players to require purchasing countries to certify that they will not transfer the weapons to third parties. Given the current geopolitical landscape, the defence manufacturing industry must establish a comprehensive end-user chain. Furthermore, governments of countries purchasing arms must unequivocally declare that they will not redirect the exports to any other country.

The Indian government’s stance on arms exports is clear and strong, maintaining strict regulations for certain nations. Currently, Indian companies are strictly prohibited from exporting weapons to Ukraine, and most companies actively avoid direct dealings with Russia to evade Western sanctions. This firm approach extends to other countries facing export restrictions, including Turkey, China, and Pakistan, instilling confidence in the audience about the country’s defence policies.