The EPC will act as a central body to facilitate defence exports, coordinate between stakeholders and formulate policies to enhance India’s global competitiveness in the arms trade. The move is a crucial component of the ‘Atmanirbhar Bharat’ (Self-Reliant India) initiative, which aims to promote domestic defence manufacturing.
Aiming for Global Expansion
India’s defence sector has seen substantial growth in recent years, with indigenous firms producing high-quality and cost-effective military hardware. The country has exported defence equipment worth over ₹15,000 crore in the last five years, with key buyers including nations from Southeast Asia, Africa and the Middle East.
Defence Minister Rajnath Singh called the EPC a “game-changer” that will boost India’s defence exports and establish the country as areliable arms supplier. “With the Defence Export Promotion Council in place, we aim to enhance ease of doing business, eliminate bureaucratic hurdles and help Indian defence manufacturers expand globally,” he said.
Key Objectives of the Defence Export Promotion Council
The EPC will assist both public and private Indian defence manufacturers in accessing global markets. Its key objectives include:
- Market Expansion: Identifying potential buyers and promoting Indian defence products at international trade events.
- Policy Advocacy: Collaborating with ministries and foreign governments to simplify export regulations and secure international contracts.
- Industry Support: Guiding export procedures, international compliance and geopolitical risks.
- Technology Promotion: Highlighting India’s defence capabilities, including indigenous aircraft, drones, naval systems and missiles.
- Strategic Partnerships: Encouraging joint ventures and technology transfers with international firms.
Boosting Indigenous Defence Manufacturing
India has significantly invested in domestic defence production, with companies like Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL) and Bharat Dynamics Limited (BDL) leading the sector. Private firms such as Tata Advanced Systems, Larsen & Toubro and Mahindra Defence are also playing a vital role.
Reforms introduced to boost domestic production and exports include:
- Raising the Foreign Direct Investment (FDI) limit in defence from 49% to 74%.
- Implementing the Defence Production and Export Promotion Policy (DPEPP) to incentivise manufacturers.
- Simplifying defence export licensing procedures.
- Developing defence industrial corridors in Uttar Pradesh and Tamil Nadu.
India’s Growing Presence in the Global Arms Market
India now exports military hardware to over 75 countries. Key defence exports include:
- BrahMos supersonic cruise missiles, jointly developed with Russia, with the Philippines securing a recent contract.
- Advanced Light Helicopters (ALH) and Light Combat Aircraft (LCA) Tejas, attracting interest from Southeast Asian and Latin American nations.
- Artillery systems and radar technology, supplied to African and Middle Eastern countries.
- Armoured Vehicles and Ammunition, with several African and Middle Eastern nations expressing interest in India’s indigenous land-based defence equipment.
- Unmanned Aerial Vehicles (UAVs) and drone technology are gaining traction in the global security and surveillance market.
Challenges and Future Prospects
Despite its growing potential, India faces competition from established arms exporters like the U.S., Russia, China and Europe. Additionally, complex international regulations and geopolitical considerations present hurdles for Indian firms. Another challenge is the need for enhanced research and development (R&D) to match the technological sophistication of global defence giants. While India has made progress in indigenous defence technology, further investment in AI-driven warfare systems, cyber-defence capabilities and next-generation combat vehicles is necessary to sustain long-term competitiveness.
However, the EPC is expected to tackle these challenges by implementing a more coordinated export strategy. The council will align India’s defence exports with its strategic and diplomatic goals, ensuring that India emerges as a formidable player in the global arms trade. Additionally, partnerships with global defence manufacturers will play a crucial role in technology transfer and skill development.
Expanding India’s Defence Diplomacy
Defence exports are increasingly becoming a crucial component of India’s foreign policy and diplomatic outreach. Strengthening defence ties with friendly nations enhances strategic alliances and boosts India’s geopolitical influence. Countries in Southeast Asia, Latin America and Africa are emerging as key partners in India’s defence export drive, reinforcing its position as a regional security provider.
Additionally, India’s defence engagements with ASEAN nations, the Middle East and Africa are expected to witness further growth, with potential deals in joint manufacturing and supply chain collaborations. Defence diplomacy also aids India’s national security interests by ensuring greater regional stability and countering external security threats.
Conclusion
The establishment of the Defence Export Promotion Council marks a significant milestone for India’s defence industry. With strong government backing, policy reforms and a focus on technological innovation, India is poised to become a major arms exporter. The EPC’s formation reinforces India’s commitment to self-reliance and economic growth through defence manufacturing. By fostering international partnerships, expanding global outreach and investing in advanced defence technologies, India is set to strengthen its footprint in the global arms market. The Defence Export Promotion Council is expected to not only boost defence sales but also enhance India’s reputation as a dependable and self-sufficient military supplier on the world stage.