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The Hindu
a day ago
- Politics
- The Hindu
Arms deals: India moves away from Russia; Pakistan from the U.S.
While India effectively utilised many of its indigenous defence systems during Operation Sindoor, it also relied on weapons built in collaboration with Israel, such as the SkyStriker drone, and those imported from Russia, such as the Pechora and OSA-AK missiles. Pakistan used Chinese-origin PL-15 missiles and Turkish-origin Unmanned Aerial Vehicles. An analysis of arms transfer data from the Stockholm International Peace Research Institute shows that over the past decade, there has been a significant shift in the sourcing of weapons for both India and Pakistan. India has gradually reduced its dependence on Russia and has increasingly turned to Western countries such as France, the U.S., and the U.K. A significant portion of its arms imports also comes from Israel. The data reflect the quantity of weapons imported, without accounting for their firepower or operational role. Chart 1A shows the country-wise share of India's defence imports. Staring from the 1960s, India began to consistently source more than 33% of its weapons from Russia (formerly the Soviet Union). This dependence peaked in the 1990s, when Russia accounted for an overwhelming 96.5% of India's imports. From then, Russia's share steadily dropped, falling to a still substantial 75% in the 2020s. This drop was offset by increased imports from other countries: in the 2020s, France accounted for over 9%, the U.K. for 5.5%, Israel for nearly 5%, and the U.S. for close to 3% of India's weapons imports. In contrast, Pakistan has historically sourced the majority of its weapons from both China and the U.S. over several decades. However, in the 2020s, China has emerged as Pakistan's dominant arms supplier. Chart 1B illustrates the country-wise share of Pakistan's defence imports. In the 2020s, nearly 95% of Pakistan's arms imports came from China, marking a sharp rise from 41% in the 2010s and just 19% in the 2000s. Meanwhile, the U.S.'s share declined from nearly 67% in the 2000s to 38% in the 2010s to merely 0.85% in the 2020s. Apart from overall arms procurement, specific weapons and aircraft were also points of discussion during the recent conflict. The Indian Air Force played a crucial role in 'delivering precision strikes against terror infrastructure across Pakistan'. Additionally, the IAF's control of the airspace proved 'pivotal in protecting Indian airspace during retaliatory drone and UAV attacks'. Chart 2A shows the country-wise share of India's imports of weapons related to air power. Chart 2B shows the country-wise share of Pakistan's imports of weapons related to air power. India's dependence on countries apart from Russia is even more evident in this regard. In the 2020s, India has procured more than 55% of its weapons related to air power from France, the U.K., and Israel. Pakistan's dependence on China is also even more pronounced in this regard. Over the past three decades, between 50% and 85% of Pakistan's air-related imports have come from China. While the U.S.'s share in Pakistan's arms imports has significantly declined and its share in India's imports is only gradually rising, the superpower continues to dominate global arms exports overall. Chart 3 shows the country-wise share of global arms exports (in %). In the 2020s, more than 65% of the world's arms exports originated from the U.S. Russia's share has dwindled to 5% in the 2020s, which coincides with its invasion of Ukraine. Interestingly, China accounts for less than 2% of total exports worldwide in the 2020s. A significant portion of its limited exports (33%) is directed to Pakistan. Chart 4 shows shows the country-wise share of China's defence exports. Source: SIPRI vignesh.r@
Yahoo
a day ago
- Business
- Yahoo
Israeli defense firms lament a chill from erstwhile client Philippines
JERUSALEM — Israeli defense companies have begun questioning their government about a chill in relations with the Philippines, as officials in Manila appear to be turning away from a longtime supplier of defense equipment. The source of the bilateral freeze is murky, with some executives here blaming the Israeli government's unwillingness to back Filipino sovereignty claims in the South China Sea. The Israeli Ministry of Defense's mandate of prioritizing equipment deliveries to Israeli forces amid the Gaza war – at the expense of international customers – also is to blame, industry officials have said. 'The competitors are already aware and have begun to act on it,' one executive told Defense News, speaking on condition of anonymity while discussing the sensitive matter. Israeli companies were most recently observing the Manila chill during the DSEI Japan defense exhibition, which ran from May 21 to May 23, according to an Israeli industry insider who said Filipino representatives appeared interested in Japanese products instead. The Philippines is the third-largest defense buyer from Israel, accounting for about 8.1% of total exports after the United States (13%) and India (34%). That is according to the Stockholm International Peace Research Institute (SIPRI) report from last March. Defense purchases from Israel intensified during the period of Rodrigo Duterte as president of the Philippines. In his visit to Israel in September 2018 he said during a speech at a joint event with then-Israeli President Reuven Rivlin: 'I instructed my military personnel that in the field of military equipment and weapons, there is only one country to buy from, and that is Israel.' Among the Israeli defense systems purchased by the Philippines are the Spyder air defense systems from Rafael, Sabrah 2 light tanks from Elbit, Shaldag boats from Israel Shipyards, and Hermes-type drones. Israeli defense companies declined to comment on the record. The Israeli Foreign Ministry wrote in a statement that 'the issue is known and is in discussion with security officials and defense industries.' A ministry spokesperson denied that Israel's position on South China Sea claims is at the center of any disagreements. The Philippine Embassy in Tel Aviv did not return a request for comment by press time.
The Hindu
4 days ago
- Business
- The Hindu
The essential minerals for a robust defence ecosystem
In a strategic move, India has suspended the Indus Waters Treaty with Pakistan. The impact will be felt when drought sets in on the other side of the border. Conversely, imagine a scenario when nations exporting critical minerals to India decide to halt supply. A change in geopolitics can turn friend into foe, a cross-border conflict between adversaries such as Russia and Ukraine can disrupt the supply chain, or the threat of export restrictions can become a concern for raw material sourcing (think of China and its hold on rare earths). Hence, there is a need to be self-sufficient in the production of critical minerals, metals, and rare earths, which will help increase indigenous defence production. To retain the military edge, the country must continue to enhance weaponry with minimal dependence on the import of key input materials. India's military spend as a share of the GDP is 2.3%, while Pakistan spends 2.7% and Israel 8.8%, according to the Stockholm International Peace Research Institute report for 2025. A Defence Ministry press release says 65% of defence equipment is now manufactured within India, a significant shift from the earlier import dependence of 65-70%. The constituents of indigenous defence capability include 16 defence public sector undertakings, over 430 licensed companies, and more than 16,000 MSMEs. As for rupee value, India's defence production reached ₹1.27 lakh crore in the financial year 2023-24, marking a 174% rise since 2014-15, which affirms the transformation ushered in by the 'Make in India' initiative. Defence exports hit a record ₹21,083 crore in 2023-24, expanding 30 times in a decade, with exports to 100-plus countries. The spurt in exports can be attributed to the Union government's resolve to become 'Atmanirbhar' (self-reliant) in military supplies. According to Jay Vinayak Ojha, Research Fellow at the Vidhi Centre for Legal Policy, the DRDO's Akash air defence system, the domestically upgraded L/70 guns, and BrahMos missiles have proved themselves in the recent India-Pakistan conflict. What else do we manufacture and export? Advanced towed artillery guns (ATAGs), Dornier-228 aircraft, mine-protected vehicles, simulators, radars, Pinaka rockets and launchers, body armour, ammunition, thermal imagers, and components of small arms. Soon, like-minded nations will likely source more 'Made in India' weapons, reiterating the need to sustain current production levels within the country. Essential minerals According to the SFA (Oxford), a value chain consultancy, critical minerals are essential in modern defence technologies. They enhance performance, durability, and efficiency of surveillance, targeting and navigation, and are a key input in weapon systems. Titanium, tungsten, nickel, lithium, zirconium, and other critical minerals and metals are used in a variety of military equipment such as aircraft, aircraft carriers, helicopters, and armoured personnel carriers. Precision-guided missiles rely on a range of critical minerals for superior performance. What about rare earth elements (REEs)? The cohort of 17 metallic elements with similar chemical properties enables advanced radar, sonar, laser guidance, communication, and propulsion technologies, ensuring superior precision, stability, and resilience in combat environments. Their role in laser weaponry, and military-grade electrical equipment makes them indispensable for national security and technological superiority. They are an essential input in the production of magnets for guidance systems in precision-guided munitions such as missiles. Magnets made from rare earths such as neodymium and samarium are utilised in unmanned aerial vehicles, bombs, propulsion systems, and other military equipment. For example, an advanced fighter aircraft can contain over 400 kg of REEs in its electric motors, electronic warfare systems, and radars. Copper has been notified as a 'critical mineral' by the Union Coal and Mines Ministry. The refined product is used extensively in military aircraft and naval and Coast Guard ships due to its inherent ability to resist corrosion. When combined with lead and nickel, copper helps produce military gear and body armour that can withstand impact and degeneration. Due to its excellent electrical conductivity and thermal properties, copper finds application in electrical wiring, connectors, components of electronic systems, and tanks and missiles. Copper alloys, such as phosphor bronze, aluminium bronze, silicon bronze, copper-chromium alloys, copper-zirconium alloys, and copper-tungsten, offer a range of properties suitable for various defence applications. Copper-nickel alloys, such as C70600 (90-10) and C71500 (70-30), are essential for marine environments in defence applications. Drones, which were extensively used in the recent India-Pakistan conflict, require copper, carbon fibre, aluminium, plastic, lithium-ion, and silicon. As for aluminium, more than 80% of aircraft are made from this lightweight metal, which is strong enough to carry heavy loads. The National Critical Minerals Mission launched in 2024 is aimed at reinforcing India's critical mineral value chain across all stages from exploration and mining to beneficiation, processing, and recycling of end-of-life products, an initiative designed to ensure self-sufficiency in fulfilling the demand for critical minerals. How much of the critical minerals and metals are available in India? How many domestic companies are engaged in mining and production? Critical reserves Copper and cobalt ore: As per a report published by the World Economic Forum (WEF) in January 2025, India is blessed with vast mineral reserves, yet only about 20% of India's geological wealth has been explored to date. India has approximately 163.9 million tonnes of copper reserves, and approximately 44.9 million tonnes of cobalt ore resources. Rare earths: With reserves of 6.9 million tonnes, India ranks third globally in REEs, with China and Brazil at No. 1 and 2, respectively. India produced 2,900 million tonnes of rare earths in 2024, according to Investing News Network. However, there is vulnerability in some of the essential minerals. India is dependent on other countries for imports of lithium, nickel, vanadium, niobium, and rhenium. Such reliance can lead to supply disruptions and price fluctuations. Companies in the field In April, a financial website named 'Equitymaster' ranked the top five Indian companies to watch out for in the race for rare and critical minerals: Vedanta: The mining and metals major is active in zinc, silver, lead, aluminium, copper, nickel, oil, and gas. As one of the largest aluminium producers in India, it accounts for 60% of the country's total aluminium output. The group holds a strong market position in the zinc segment and is India's sole producer of nickel. NALCO: The Navaratna public sector enterprise under the Ministry of Mines is one of Asia's largest integrated primary aluminium producers. It is a global leader in producing bauxite and alumina at a low cost. A residue in the bauxite refining process yields rare earth elements such as scandium and yttrium. In 2024-25, NALCO secured a 50-year mining lease from the Odisha government for bauxite mines, which contain 75 million tonnes of mineable reserves. In addition, it has a partnership with the Bhabha Atomic Research Centre to develop technologies for extracting rare earth elements. Hindustan Copper: The vertically integrated copper producer engages in all stages of copper production, from mining to the final conversion into marketable products. HCL holds mining leases for over 80% of the country's copper reserves. The company plans to allocate ₹4.5 billion to ₹5 billion annually toward mine expansion to meet the surge in demand from industrial users. Coal India: The public sector undertaking has recently signed an MoU with Indian Rare Earths to collaborate on the development of critical minerals, including rare earth elements. In addition, Coal India is also exploring lithium blocks in Argentina and engaging with Chile to secure the supply of critical minerals. NMDC: The Navaratna PSU is India's largest iron ore producer, accounting for around 20% of the nation's demand. Going beyond iron ore, the NMDC has partnered with Hancock Prospecting of Australia for lithium and cobalt mining. The company is expected to diversify into nickel. The contribution of the above five companies to critical minerals will spur quality and productivity at hundreds of domestic companies engaged in defence manufacturing and green energy transition initiatives. As progress inspires further progress, as the wheel of growth reaches a new velocity, we can expect India to continue to rise in prominence on the world stage in critical minerals, defence manufacturing, and green energy transition. (The writer is a former journalist and advertising professional, now serving as a communications consultant; views are personal)
Economic Times
5 days ago
- Business
- Economic Times
India's Defence Renaissance: Riding the next wave of growth
Over the past year, the Indian defence sector has witnessed a remarkable transformation. From robust order inflows and rising exports to record-breaking production targets, this space has emerged as one of the most exciting segments in the broader market. While defence stocks had already delivered stellar gains during the initial Bull Run post-COVID-19, a phase of price consolidation followed. However, recent geopolitical developments are again bringing this sector back into the spotlight, and early signs suggest that a fresh upward trend is taking shape. ADVERTISEMENT The resurgence in defence stocks over the past few weeks is not coincidental. With ongoing tensions at the global level, the demand for enhanced military preparedness has gained fresh momentum. Even in regions where ceasefire agreements have been reached, the underlying security concerns remain unresolved. As nations prepare for long-term security challenges, defence budgets are being recalibrated across the world. India is no exception. India's Defence Minister, Shri Rajnath Singh, recently underscored the government's strong focus on the sector, highlighting that defence exports have surged 34 times from ₹686 crore in FY2013- 14 to ₹23,622 crore in FY2024- 25. He also noted that defence production is expected to exceed ₹1.60 lakh crore this year, with an ambitious target of ₹3 lakh crore by 2029. These numbers are not just targets; they reflect a shift in the national mindset from being an importer to becoming a global supplier of defence technology. This transformation has been further reinforced during the recent India-Pakistan conflict, where India's defence systems demonstrated exceptional capability and operational strength. The performance not only validated India's technological advancements but also positioned the country as a reliable partner for global defence exports. At the global level, military expenditure has reached a new milestone. According to Stockholm International Peace Research Institute (SIPRI), global defence spending touched $2,718 billion in 2024, up 9.4% from the previous year, the steepest rise since the Cold War era. The global military spending now accounts for approximately 2.5% of the world's GDP, which stands at around $110 trillion. This translates to total defence spending of $2.7 trillion. In comparison, India's defence exports are currently at $2.7 billion, representing just 0.1% of the global defence market. If global defence expenditure rises to $3 trillion by 2030 and India increases its share to 1%, the country's defence exports could reach $30 billion. This underscores a strong growth potential for Indian defence companies, supported by increasing global demand and India's growing emphasis on domestic manufacturing and expanding defence exports. ADVERTISEMENT India ranks among the top five military spenders globally, with an allocation of $86.1 billion in 2024, up 1.6% year-on-year. But beyond numbers, what stands out is the structural reform in the domestic ecosystem. The 'Atmanirbhar Bharat' vision is enabling Indian companies to take centre stage in defence manufacturing. The import data as per SIPRI also indicates that India's arms imports declined by 9.3% between the periods 2015–19 and 2020–24, reflecting the country's growing capability to design and manufacture its own defence equipment, thereby reducing its dependence on foreign suppliers. As we move from being passive buyers to active producers, Indian defence companies are not just catering to domestic requirements but are also strengthening global defence supply chains. Looking ahead, the government aims to scale defence exports to ₹50,000 crore by FY29. These targets, alongside rising domestic demand, are likely to create a sustained growth environment for listed defence players. With a focus on indigenisation, long-term capital allocation, and policy support, Indian defence companies are poised to benefit from multi-year tailwinds. ADVERTISEMENT For investors, this marks a potential inflexion point. After a phase of healthy consolidation, the sector is showing early signs of renewed strength. Given the combination of strong fundamentals, favourable policy landscape, and global tailwinds, I believe this could be the beginning of a long-term structural rally in Indian defence stocks. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel) (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of
Time of India
5 days ago
- Business
- Time of India
India's Defence Renaissance: Riding the next wave of growth
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Over the past year, the Indian defence sector has witnessed a remarkable transformation. From robust order inflows and rising exports to record-breaking production targets, this space has emerged as one of the most exciting segments in the broader market. While defence stocks had already delivered stellar gains during the initial Bull Run post-COVID-19, a phase of price consolidation followed. However, recent geopolitical developments are again bringing this sector back into the spotlight, and early signs suggest that a fresh upward trend is taking resurgence in defence stocks over the past few weeks is not coincidental. With ongoing tensions at the global level, the demand for enhanced military preparedness has gained fresh momentum. Even in regions where ceasefire agreements have been reached, the underlying security concerns remain unresolved. As nations prepare for long-term security challenges, defence budgets are being recalibrated across the world. India is no Defence Minister, Shri Rajnath Singh, recently underscored the government's strong focus on the sector, highlighting that defence exports have surged 34 times from ₹686 crore in FY2013- 14 to ₹23,622 crore in FY2024- 25. He also noted that defence production is expected to exceed ₹1.60 lakh crore this year, with an ambitious target of ₹3 lakh crore by 2029. These numbers are not just targets; they reflect a shift in the national mindset from being an importer to becoming a global supplier of defence technology. This transformation has been further reinforced during the recent India-Pakistan conflict, where India's defence systems demonstrated exceptional capability and operational strength. The performance not only validated India's technological advancements but also positioned the country as a reliable partner for global defence the global level, military expenditure has reached a new milestone. According to Stockholm International Peace Research Institute (SIPRI), global defence spending touched $2,718 billion in 2024, up 9.4% from the previous year, the steepest rise since the Cold War global military spending now accounts for approximately 2.5% of the world's GDP, which stands at around $110 trillion. This translates to total defence spending of $2.7 trillion. In comparison, India's defence exports are currently at $2.7 billion, representing just 0.1% of the global defence market. If global defence expenditure rises to $3 trillion by 2030 and India increases its share to 1%, the country's defence exports could reach $30 billion. This underscores a strong growth potential for Indian defence companies, supported by increasing global demand and India's growing emphasis on domestic manufacturing and expanding defence ranks among the top five military spenders globally, with an allocation of $86.1 billion in 2024, up 1.6% year-on-year. But beyond numbers, what stands out is the structural reform in the domestic ecosystem. The 'Atmanirbhar Bharat' vision is enabling Indian companies to take centre stage in defence manufacturing. The import data as per SIPRI also indicates that India's arms imports declined by 9.3% between the periods 2015–19 and 2020–24, reflecting the country's growing capability to design and manufacture its own defence equipment, thereby reducing its dependence on foreign suppliers. As we move from being passive buyers to active producers, Indian defence companies are not just catering to domestic requirements but are also strengthening global defence supply ahead, the government aims to scale defence exports to ₹50,000 crore by FY29. These targets, alongside rising domestic demand, are likely to create a sustained growth environment for listed defence players. With a focus on indigenisation, long-term capital allocation, and policy support, Indian defence companies are poised to benefit from multi-year investors, this marks a potential inflexion point. After a phase of healthy consolidation, the sector is showing early signs of renewed strength. Given the combination of strong fundamentals, favourable policy landscape, and global tailwinds, I believe this could be the beginning of a long-term structural rally in Indian defence stocks (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
