Four years ago, on May 12, 2020, Prime Minister Narendra Modi called for Atmanirbhar Bharat, emphasizing self-reliance as essential for India’s 21st-century aspirations. Subsequent bold defence policy reforms aim to enhance indigenous production and capability.

It was four years back on 12 May 20 in the backdrop of the worldwide Covid outbreak that the Hon’ble Prime Minister in his address to the nation gave the Clarion call for Atmanirbhar Bharat. Self-reliance he acknowledged was the way to go to fulfil the dream of making the 21st century India’s. As a logical sequel to the announcement there were a slew of announcements by each ministry. Atmanirbharta in defence stands out as one of the most critical sectors given the unique multidimensional challenges faced by India, some bestowed as part of geographical heritage compounded by the legacy of the 1947 partition and unsettled disputes. The nation cannot afford any misdemeanour by any of its neighbours. Hence the Ministry of Defence was not far in announcing bold policy and procedural reforms which included earmarking separate budget allocation in defence budget for procurement from domestic vendors, issuing a negative list of defence items soon rechristened as positive indigenisation which continues to be updated regularly with additional items identified, enhancing FDI to 74%, liberalising Industrial Licensing regime, corporatising of ordnance factories and many others. Soon thereafter the Defence Acquisition Procedure 2020 was released on 30 Sep 2020 which contains the following in the foreword:-

While this was the beginning, the subsequent budgets and announcements have strengthened the resolution and will of the Government to peruse the dream of USD 5 trillion economy as also achieving the defence exports target of 1.75 lakh Crore. The Defence Production and Exports Promotion Policy was another document to support the resolve. The focus on reforms has continued and incremental changes/additions and provisions keep rolling out.

In the defence budget of FY 2022-23 the AtmaNirbharta focus led to Defence R&D to be opened up for industry, startups and academia with 25% of defence R&D budget earmarked. This was a significant initiative to incentivise research and development in the private sector though the moot question remains as to how much of this has been utilised?

The budget of FY 2024-25 reflects the same sentiments with incremental enhancements. At this stage itself it needs to be appreciated that the criticism which is raised at the miniscule incremental enhancement needs to be viewed from not only the lens of the budget provider ie the Ministry of Finance but also from the capability of the Defence Forces to absorb the allocations. After all, the outgo for modernisation includes a lion’s share in the form of committed liabilities (payments against deliveries from contracts signed in previous FYs) and very limited cash outflow capacity by way of signing of new contracts in the current FY which is paying the stipulated advances for the same on signing of the contract. So, the policies, procedures and financial enablement shall continue but does it enhance the capability or the technology threshold of the Defence Forces or the Nation. Will these reforms be enough to propel the nation as well as the defence forces to be self-reliant or is there   something more that needs to be done?

The essence of true Atmanirbharta lies in self-reliance through Research & Innovation. This can only happen if the Nation nurtures a research-oriented outlook and this holds the key to be self-sufficient. Now interestingly the defence budget does focus on this issue but it needs to be examined what is being done and is it enough and also is the approach right? Coming on to budgetary provisions to catalyse this aspect, the allocation to Defence Research and Development Organisation (DRDO) has been increased to Rs 23,855 crore in FY 2024-25 from Rs 23,263.89 crore in FY 2023-24. Out of this allocation, a major share of Rs 13,208 crore is allocated for capital expenditure. This will financially strengthen the DRDO in developing new technology with special focus on fundamental research and hand-holding of the private parties through Development-cum-production partner. The allocation to Technology Development Fund (TDF) scheme stands out to be Rs 60 crore which is specially designed for new start-ups, MSMEs and academia attracting the young bright minds interested in innovation and developing niche technology in collaboration with DRDO. The Government has increased the allocation on innovation in defence through iDEX from Rs 115 crore during FY 2023-24 to Rs 518 crore in the current fiscal year, which will boost start-ups/MSMEs/innovators in developing Def-Tech solutions and invite young ignited minds. Now without any arguments on whether this is enough or more needs to be done, let us focus on the larger picture and that is the R&D culture within the country and is there a synergy in the efforts amongst various bodies involved in R&D.

The issue assumes greater importance in today’s context of emerging and disruptive technologies when Defence R&D is not something which has to be linked to the requirement of defence forces alone. It involves a whole of Nation approach and is strongly intertwined to R&D base of the Nation be it in any field – advance materials, aerospace, tele-communication, strategic electronics, AI, robotics and autonomy, marine, aeronautics, sensors and actuators, scientific computing, power systems, nano-technology and the list is endless. In recent times significant initiatives have been taken for niche technologies at the National level. In 2021 the government launched the India Semiconductor Mission (ISM) with an outlay of `76,000 crore for semiconductor manufacturing, packaging, and design units. In Apr 2023 National Quantum Mission (NQM) at a total cost of Rs.6003.65 crore from 2023-24 to 2030-31, aiming to seed, nurture and scale up scientific and industrial R&D and create a vibrant & innovative ecosystem in Quantum Technology (QT) was approved by the cabinet. A very positive and encouraging scenario wherein acknowledgement of mission-oriented research is evident and way ahead thought of.

There are many such initiatives which are being pursued in silos and need a direction. But before that a few trends in National R&D expenditure need to be highlighted. As per the Department of Science and Technology, R&D statistics 2022-23 report, the Gross Expenditure on R&D (GERD) is around 0.64-0.66% of the GDP. And India accounts for only 3.1% of the world GERD. Compared to India’s expenditure figure, countries like Germany, Japan, Israel, USA, South Korea spend more than 3% on R&D. Most of other developed countries spend more than 2%. Further in India the GERD is mainly driven by the Government Sector which accounts for 59.2% out of which the Central Government contributes 43.7% of the expenditure distributed across twelve major scientific agencies. The public sector and private sector R&D expenditure is 4.4% and 36.4%. Intriguing it may seem but the Public Sector R&D units spend merely 0.30% of their sales turnover on R&D as compared to 1.46% by Private sector. While the Defence Industry led the public sector R&D expenditure the private sector focus is dominated by Drugs and Pharma, Info Technology, Textiles, Bio Technology and Transportation. In contrast in countries like China, Japan, South Korea, and USA the expenditure on R&D by business enterprises is more than 70%. Another interesting figure cited in the report merits attention which is that out of the total R&D expenditure it is just 65.3% is on actual R&D activities while rest goes in auxiliary and administrative/non-technical support activities. Notwithstanding the expenditure India ranks 3rd in terms of PhDs awarded in science and engineering only behind USA and China!!!!!

Now it is fairly evident that the expenditure on R&D for a country like India needs to be scaled up. Scaling up with a direction is the need of the hour. Today besides the DRDO, the R&D is mainly led by Department of Science and Technology. In this some of the major areas find a distinct overlap with technologies required for defence. The Central Sector Schemes/Projects in the DST cover Science and Technology Institutional and Human Capacity Building, Research and Development, Innovation Technology Development and Deployment, National Mission on Interdisciplinary Cyber Physical Systems and National Quantum Mission (NQM) are allocated almost 2800 Crores in the budget more than double that of last FY. Research areas include a National Mission on Nano Science & Nano Technology, Mega Facilities for Basic Research, Alliance and R&D Mission & Super Computing Facility & Capacity Building, Technology fusion & Applications Research National Mission on Interdisciplinary Cyber Physical Systems a new class of engineered systems that integrate computation and physical processes in a dynamic environment. CPS encompasses technology areas of Cybernetics, Mechatronics, Design and Embedded systems, Internet of Things (IoT), Big Data, Artificial Intelligence (AI) and many more. The National Quantum Mission (NQM) aims to seed, nurture and scale up scientific and industrial R&D and create a vibrant and innovative ecosystem in Quantum Technology (QT).

The Science and Engineering Research Board and Technology Development Board which are a statutory body under the Department of Science & Technology to promote development and commercialization of indigenous technology and adaptation of imported technology for wider application are budgeted at 903 cr. The National Research Foundation (NRF) which includes provision for Anusandhan National Research Foundation (ANRF) with a goal to seed, grow and promote research and development (R&D) and foster a culture of research and innovation throughout Indian universities, colleges, research institutions and accounts for Rs 2000 Cr. Autonomous Bodies like Council of Scientific and Industrial Research (CSIR) and National Laboratories are allocated Rs 6265 Cr. There are many other such R&D initiatives distributed in various sectors.

Well, the intent appears to be clear but there is a dire need to synergise the RD efforts at a National level and bring in convergence in the efforts. The fragmented and convoluted approach is bringing in loss of capital besides delayed outcomes. The Government will do well in commissioning a National Research & Development Commission which takes into account and links the sectors of R&D to various Ministries and their requirements. The likes of National Quantum and Semi-Conductor Mission need to be replicated with road map deliverable and budget allocations.  Major Issues which will need alignment include: –

• A credible data base of all R&D activities being undertaken in the Country.
• Synergise the projects and technologies being researched.
• Carve a National Strategy and road map for R&D plan.
• Identify Strategic technologies including deep tech and earmark agencies for the same.
• Identify technologies having dual/multi applications across sectors and institute a lead mission.
• Incentivise R&D by the private sector and enhance their spending.
• Co-ordinate and have an overview of Research in Centres of Excellence, Universities and all academic institutions for tangible outcomes.
• Enhance R&D expenditure and create centralised budgetary provisions for R&D.
• Create an eco-system to nurture R&D.

Reforms at the National level in R&D are therefore the way ahead. Concerned by the DRDO outcomes a committee under the PSA had been constituted in Aug 23 and the report submitted. The constitution of the committee by the Government points out to concerns with defence R&D but will this alone be enough? Though the report recommendations are not known certain inputs did appear in a leading daily and spoke about structural and functional reforms including creation of a Defence Technology Council. It is time that a Defence Technology Commission be created at a National level and Defence Technology and Strategic areas could be in the domain of Defence Technology Council. Structural and functional Reforms are needed in R&D at the National level. The Cost of Atmanirbharta is Investment in R&D by the Nation and which is the only way to achieve self-reliance and in simple words “You reap what you sow”.