In the recent news, it has come to light that domestic manufacturers of small arms are expressing their concerns over the ongoing imports of small arms by the Indian Government. The primary concern revolves around the fact that despite substantial investments and advancements made by Indian companies in the manufacturing of small arms, a dearth of big orders from the government is forcing them to turn towards smaller orders, mainly from police and Central Armed Police Forces (CAPF).
Investments and Capabilities of Domestic Manufacturers
Over the past few years, numerous Indian companies have invested significantly into the small arms sector, taking advantage of the government’s invitation to private sector involvement, thanks to a high demand for small arms. Notably, India’s foreign investment policy encourages the flow of Foreign Direct Investment up to 74%, and in some particular cases, even up to 100%.
These domestic companies have proven to be competent in manufacturing small arms with over 50% indigenous content while matching the required price and timelines. Despite their potential, the absence of sizeable orders from the government has left these businesses seeking smaller, less profitable deals.
Limited Involvement in Fast Track Procurement
An additional burden for domestic manufacturers is their exclusion from deals through Fast Track Procurement (FTP), which is currently confined exclusively to foreign vendors.
Continued Dependence on Small Arms Import
Illustrating the enduring reliance on imports, the Indian Army recently made a second order of 72,400 SIG-716 assault rifles from Sig Sauer, a United States-based firearm manufacturer. This is part of the Army’s continuous efforts to transition from the indigenous Indian National Small Arms System (INSAS) rifles to modern models.
Previously, in February 2019, India’s Defence Ministry had procured a similar quantity of the same model via Fast Track Procurement. While most of this order was intended for the Army, the residual demand of over 700,000 rifles was to be satisfied through licensed manufacturing of Russian AK-203 rifles in India via a collaboration with the Ordnance Factory Board (OFB). Yet, this final deal remains stalled over pricing issues.
Demand of Domestic Manufacturers
Domestic manufacturers are advocating for a fair playing field that allows them to exhibit their products alongside foreign companies, promoting the government’s ‘Make in India’ initiative.
The Way Forward
By supporting domestic manufacturers, India has the potential to evolve into a hub of excellence in the small arms sector. This not only reduces the dependence on imported arms and ammunition, but also aligns well with the Indian government’s vision of ‘ATMA NIRBHAR’ or self-reliant India. Furthermore, encouraging domestic arms production will invariably lead to job creation for the Indian workforce. This scenario represents a win-win situation bolstering both national defense capabilities and economic growth.
