Aero India 2025: Challenges continue in India’s indigenisation process of defence items

Aero India 2025 showcases locally produced defence components for indigenisation, aiming to reduce foreign dependency and boost local manufacturing.

As the Indian armed forces look to indigenise critical components for defence items, hundreds of products identified to be locally produced are being showcased to the private sector at the Aero India 2025 currently underway in Bengaluru. While a large number of those are for the decades-old hardware that need replacement, some of the components that India is looking at includes for new acquisitions such as Rafale fighter aircraft and Apache helicopters.

While more than 13,400 parts/components have been indigenised, more than 37,900 defence items have been listed in the positive indigenisation list by the government last year. These are to be manufactured locally involving the private sector, especially the MSMEs.

A large number of these components are for equipment, vehicles, aircrafts and helicopters among others sourced from Russia, France and Israel, sources said. “The component can be a small bolt to a big spare. For example, the production of side gear box for T-90 was successfully indigenised recently.”

The Indian Air Force is looking at avionics, electronics and mechanical parts besides others for MI 17, Sukhoi MK30, MIG 29, Rafale, Mirage 2000, AN 32 and IL 76. “There are about 130 critical items identified for indigenisation and displayed at Aero India. This is a miniscule number compared to what we require,” sources said.

The indigenisation process started years ago to save foreign exchange and limit the delay in procurement but it still faces acute challenges, acknowledged an official in the Directorate of Indigenisation.

“Since the component required is part of scheduled maintenance, getting them manufactured here is a challenge as bulk orders cannot be placed. Even the orders cannot be sustained regularly. It may be difficult for MSMEs to invest on manufacturing small quantum,” an official said, adding that at times the components are not available in the market or are available at a very high cost. “Procurement process itself can be delayed or the government may end up paying 10 to 20 times more.” 

Another official said that though transfer of technology would have taken place, specifics for production of components are not explained. “India’s strength in metallurgy is not strong. The original equipment manufacturers (OEM) do not share specific details about heat treatment, making it tough for us to produce. In this situation, India is looking at alternative components. Some may pass the stress test and some may not.”