Aluminium at the helm of Atmanirbhar India; reshaping the Indian Defence sector

Aluminium and its alloys are widely employed by defence and military systems globally for the production of tanks, missiles, helicopters, satellites, and other equipment. This is due to aluminium's cost advantage and intrinsic qualities, which is a crucial component in the defence system.

Aluminium is the most commonly used non-ferrous metal and the second highest in usage among all metals after steel. It is revered for its lightweight, ductile, easy-to-fabricate, and corrosion-resistant properties. Furthermore, aluminium holds exceptional fatigue and strength properties. The mining of its ore (bauxite) can be done in a sustainable way, and the extracted aluminium is 100% recyclable, making it an environmentally friendly choice for the defence industry.

Over the course of time, the Indian defence sector has made notable strides in both technology and industry. Since its first ordnance factory was established in 1801, the sector has come a long way. However, following India's independence, progress in the sector was slow, resulting in extensive reliance on foreign arms suppliers and, consequently, high costs. This left the Indian defence sector in a subservient position to foreign arms suppliers, and the slogan of self-reliance, Aatmanirbharta, remained unfulfilled for many years.

The Kargil conflict in 1999 served as a turning point for the Indian defence sector. The political leadership implemented significant measures towards self-reliance, such as allowing private participation in the defence sector, initiating long-term reforms, and corporatising government-owned public sector defence companies. These reforms continued over the next fifteen years, producing mixed results. However, in the past decade, renewed efforts towards self-reliance in defence have yielded fruitful outcomes, thereby positioning India as a significant global force. As a result, the developed world looks to India for guidance and counsel. India is now among the top five world economies and the fastest-growing among major economies for the previous three years.

The Indian defence sector has played a pivotal role in the country's transformation. The government's efforts to promote self-sufficiency by encouraging indigenous design, development, and manufacture of defence equipment have produced impressive outcomes. While India remains a significant importer of defence equipment, its exports have reached an unprecedented value of INR 15,920 crore in FY23, representing a more than tenfold increase since FY17. India aims to triple its exports within the next two years, and the country is working towards achieving this target with utmost dedication.

Three domestic companies are listed among the top 100 defence companies globally. To further bolster India's position as a leading hub for defence manufacturing, the government has established two defence industrial corridors in collaboration with the private sector. Prime Minister Narendra Modi has expressed his commitment to incentivise and encourage domestic industries to produce high-end products that can fetch a premium in the global market. A key component of this strategy is prioritising the use of locally sourced high-quality components and inputs to ensure self-sufficiency is achieved.

Key ways to boost India's defence sector:

•              Indigenisation is important as the world moves inward.

•              India has made progress, with spending on foreign defence procurement decreasing.

•              The government plans to phase out defence sub-systems and components.

•              Input availability could be a challenge for domestic defence manufacturing.

•              Rising global military expenditure presents opportunities for the Indian industry.

India has made significant strides in the production of low-carbon 'green' aluminium, with Vedanta's Restora brand leading the way. Many other Indian companies have also contributed to the mining, refining, and recycling of aluminium and related metals and minerals. The US Army recognised the importance of aluminium in defence manufacturing and entered a five-year, U$50 million contract with Alcoa in 2016 to reduce vehicle weight and assembly time while increasing troop protection. This valuable metal is now increasingly used in various types of military and defence equipment, and India is striving to supply its customers in more than 85 countries.

India's domestic aluminium industry, including established entities like Vedanta, has an installed smelting capacity of 4.1 million tonnes and is well-poised to meet the growing demand in power, automotive, packaging, construction, electrical, and electronics sectors. Additionally, India has a significant bauxite reserve that remains untapped due to the industry's inability to access it fully. However, with the right policies and support, the industry can remain globally competitive despite the dip in global demand and rising input costs that have led to a contraction in earnings.

The energy transition in India is critical, and the government needs to provide financial assistance and incentives to encourage more production and value-addition in the aluminium sector. Aluminium plays a crucial role in achieving the transition to electric vehicles and renewables, which account for 85% of solar PV components. Electric vehicles require ten times more aluminium than traditional vehicles, and the consumption of aluminium is projected to double globally in a two-degree climate scenario. The Australian aluminium council has recently called for bauxite, alumina, and aluminium to be included in the "critical materials" list to achieve emission targets. The US, EU, and Canada have already done it, and India should follow suit to ensure a brighter future.

It is a major feat for the Indian subcontinent, and it gives AL Circle immense pleasure to jot down all the crucial advancements in the Indian Defence sector just after the 26 July celebration of the Kargil Vijay Diwas. May all our soldiers have the best-in-class machinery to defend themselves and the country against any odds because it's time India realises the importance of armament and heavy artillery.