The purchases are in line with the government policy to tilt the 'indigenous to imports' ratio decisively in favour of indigenous equipment, with the aim to eventually stop imports, reliable sources told ET. However, the absence of viable alternatives, especially for hi-tech items, has proved to be a challenge.
They have set a working target of 68% for the next financial year, ET has learnt.
The government push for maximising purchase of indigenous military equipment, with strict non-deviation norms, has resulted in the armed forces spending 64% of their capital outlay for RE 2021-22 on indigenous options. They have set a working target of 68% for the next financial year, ET has learnt.
At the same time, they made last-minute push to exhaust their capital outlay allocations for the year after it came to light in reviews last month that the Army may have to surrender close to Rs 1,000 crore.
The purchases are in line with the government policy to tilt the 'indigenous to imports' ratio decisively in favour of indigenous equipment, with the aim to eventually stop imports, reliable sources told ET. However, the absence of viable alternatives, especially for hi-tech items, has proved to be a challenge.
The Army, for instance, has spent 72% funds on indigenous purchases, but its utilisation of funds was proportionately less efficient compared to the Air Force and the Navy. Among them, the Navy's indigenous ledger stood at about 65.9%, while the Air Force was the lowest at 59.2%.
The total defence capital outlay in RE 2021-22 was Rs 1,13,717.58 crore. The 'indigenous to imports' ratio was about 64:36. Going ahead, sources said, the attempt was to seek a raise to a little over Rs 1,17,400 crore with a clear commitment to target an 'indigenous to imports' ratio of 68:32.
To achieve this, service-wise targets have also been identified. The Army's share is the highest with 75-76%, Navy will aim to reach 70% and Air Force will target 62%.
While these will be working targets, the defence ministry has made it clear that any purchase beyond the agreed 'indigenous to imports' ratio will require a detailed justification, which requires special approval of the defence minister.
The import bill of the Air Force remains high given the payments underway for Rafale fighters, its ancillary equipment and the S-400 air defence system. Moving ahead, the government has taken a strategic call to reduce dependency on foreign suppliers.
In the recent 2+2 meeting with Russia, which is India's principal source for military equipment and spares, the Indian side made it clear that the future of the relationship lay in Moscow investing in Make in India projects like AK-203 rifles in Amethi. Similarly, the BrahMos model is being cited as another way forward. India has just concluded its first BrahMos export deal with the Philippines.
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