Import substitution leaves India without weapons

The import substitution policy adopted by India makes the country more vulnerable to Chinese and Pakistani threats, Bloomberg reported on September 8, citing sources in the country’s leadership. The policy of Prime Minister Narendra Modi to develop the national production of Make in India has led to great difficulties in the purchase of foreign weapons. Because of this, by 2026 the Indian armed forces will experience a critical shortage of helicopters, and by 2030 – a shortage of hundreds of fighters.

Make in India started shortly after Modi came to power in 2014. Under this policy, the country planned to deploy large-scale import substitution to create jobs. The government demanded that foreign weapons assembled in India should contain from 30 to 60% of domestic components. India has achieved some success along this path, writes Bloomberg. Part of the military equipment New Delhi buys from local manufacturers, but the country’s capacity is not yet enough to produce complex weapons systems, such as diesel-electric submarines or fighter jets. The fact that India is still one of the world’s largest arms importers eight years after the start of Make in India suggests that the country cannot produce enough weapons for its own needs, Bloomberg explains.