India's expanding defence sector creates opportunities for Australia
Canberra, July 18
The rapid growth of India's defence production and exports is opening new avenues for countries seeking to diversify their strategic partnerships.
India's ability to manufacture affordable arms and ammunition makes it an attractive partner for developing economies. For Australia, which is balancing fiscal pressures with capability requirements, collaboration through joint production with India's defence sector is "real and worth pursuing".
While Prime Minister Narendra Modi's visit to Australia last week grabbed headlines for a large-scale Indian diaspora event in Melbourne, it also delivered substantive outcomes in investment, energy, sports, education, and defence cooperation, according to a report in Australia-based 'The Interpreter'
"The announcement of a wide-ranging India-Australia Joint Declaration on Defence and Security Cooperation tended to be undervalued in Australian commentary with the focus on domestic debates around AUKUS, China's growing military capabilities, and the implications of the wars in the Middle East and Ukraine. Yet over the past decade, security cooperation between India and Australia has broadened and deepened more than many appreciate," the report stated.
The new joint defence declaration sets out a more ambitious agenda, where both sides agreed to deepen cooperation by increasing the complexity of military exercises, accelerating interoperability, broadening professional military education and workforce development, and expanding aircraft deployments from each other's territories.
"The two countries have pledged to conclude a Maritime Security Collaboration Roadmap - which will presumably build on ongoing cooperation on humanitarian assistance and disaster relief (HADR), logistics evacuation operations, and undersea domain awareness. They also included a heavy defence and cybersecurity component (under Pillars 3 and 5) to their new Partnership on Cyber, Critical Technologies and Supply Chains (PACTS)," the report detailed.
"A new space tracking terminal has been commissioned on Australia's Cocos (Keeling) Islands for India's human spaceflight programme," it noted.
According to the report, the two countries also outlined a more ambitious vision for defence industrial cooperation, including plans to "develop arrangements for advanced defence science and technology collaboration." While the goal may seem ambitious, India has made significant strides in strengthening its defence industrial capabilities over the past five years, creating unexplored opportunities for partners such as Australia.
The report noted that India exported defence equipment worth US$4 billion last year, reflecting the rapid expansion of its defence manufacturing sector.
Recent exports have included Brahmos cruise missiles to the Philippines, surface-to-air missile systems to Armenia, high-speed patrol boats to Vietnam, and a refurbished Kilo-class submarine to Myanmar. An Indian defence firm has also set up an armoured vehicle production facility in Morocco.
The report highlighted that the United States emerged as the largest market for India's 145 defence exporters.
"India produces components for Apache helicopters, F-16 aircraft, and MQ-9 UAVs. Smaller Indian firms are now producing missiles, sensors, drones, and propellants for a range of international customers, and are increasingly collaborating with American, French, and Israeli defence firms to scale production at lower costs," it detailed.
"A good example of India's international cooperation is the K9 Thunder self-propelled artillery system (called the Vajra in India), a joint venture between South Korean conglomerate Hanwha Aerospace and Indian manufacturer Larsen and Toubro. Similarly, India has established production lines in Gujarat for Spanish-origin C-295 transport aircraft and in Telangana for US-designed V-BAT drones," it noted.
— IANS
Reader Comments
Impressive numbers - $4 billion in defence exports last year! But let's not forget that domestic procurement also needs attention. Our soldiers still rely on imported rifles in some units. While international partnerships are great, we must ensure our own armed forces get priority access to indigenous equipment first. Balance is key.
The space tracking terminal on Cocos Islands is a big deal! India's human spaceflight program (Gaganyaan) needs global infrastructure, and Australia providing that support shows how deep our strategic trust has become. From cricket to space - what a partnership! 🚀
I'm cautiously optimistic. While these defence deals boost our economy and strategic position, we must ensure they don't lead to over-militarisation of the region. Also, the Pacific is already tense with AUKUS and China's moves. India should tread carefully and focus more on humanitarian cooperation like disaster relief mentioned in the article.
The K9 Vajra is a success story - South Korean technology + Indian manufacturing = best of both worlds. Same with the C-295 and V-BAT drones. Make in India is finally working in defence! Hopefully, our private sector like L&T and Mahindra Defence will benefit from this collaboration with Australia too.
Good that Australia is recognising India's potential beyond just being a market. But I hope this cooperation also includes technology transfer, not just assembly lines. India should aim for co-development of next-gen systems with Australia, not just build foreign designs. That's how we become a true defence
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.