Major Factors that Impede Reforms in India’s Military-Industrial Complex in 2014–2023

Abstract

This article intends to assess the negative impact of a number of factors on the reforming process of the Indian military-industrial complex (MIC) under the Bharatiya Janata Party (BJP) government during 2014–2023. The authors distinguish three groups of factors that mostly affect the whole structure of India’s defence industry at present. Conceptual and institutional factors include the contradictions of the basic laws and regulations of the Indian MIC, absence of the common strategy of the Indian armed forces development, politicising of the protectionist measures, offset policy implementation, bureaucracy’s impact and inter-agency contradictions. Economic factors include the problems with FDI attraction, governmental efforts to change the structure of defence expenditures by reducing the pensions to military personnel and attracting the private sector. The group of technological factors focuses on the problems with the quality and delivery delays of the defence production in India. An applied policy analysis, a retrospective analysis of data and content of the main documents allow the authors to conclude that the considered set of factors bears systemic nature and exerts a substantial negative impact on the Indian defence industry. These factors hinder the implementation of ambitious goals of the BJP government, aimed at achieving the “strategic autonomy” in the crucial fields for its national security. Moreover, the current problems of the Indian MIC are exacerbated by the impact of the domestic political situation. Consequently, resolving these problems in the short and medium term seems unlikely. However, in the longterm the reforms being carried out by the Indian government would largely offset the negative effect of the considered factors.

Keywords:

India, military-industrial complex, reforms, defence planning, defence expenditure