Acknowledgement of Large-Scale Defense Agreements Worth INR 54,000 Crores
India Approves Major Defense Acquisition Deals, Boosting Indigenous Production and Exports
In a significant move towards self-reliance in defense manufacturing, the Indian government has given the green light to several major defense acquisition deals worth over Rs 54,000 crore. The most notable of these is the Advanced Towed Artillery Gun System (ATAGS) deal, valued at around Rs 7,000 crore, which marks a significant milestone in India's indigenous defense production under the Make in India initiative.
The ATAGS, a 155mm/52 calibre artillery gun jointly developed by the Defence Research and Development Organisation (DRDO) and Indian companies including Bharat Forge (part of the Kalyani Group) and Tata Advanced Systems, is designed to replace older artillery guns in the Indian Army.
Boosting Domestic Manufacturing and Exports
The ATAGS program exemplifies India's focus on self-reliance in defense manufacturing, featuring almost entirely indigenous design and production. Bharat Forge, for instance, manufactures key components like the ordnance barrel and breech mechanism at their advanced artillery manufacturing facility. Tata Advanced Systems, along with DRDO's Armament Research and Development Establishment (ARDE) and Ordnance Factory Board (OFB), are key partners in the project, contributing to design, development, and subsystem manufacturing.
The deal supports India’s broader strategic goal to grow defense exports, with interest in ATAGS from Southeast Asia, the Middle East, and Africa. The government aims to reach Rs 50,000 crore in defense exports by 2028-29.
Key Components and Manufacturers
| Company | Role | |-------------------------|----------------------------------------------| | Bharat Forge (Kalyani Group) | Manufacture of ordnance barrel, breech, recoil mechanism; overall artillery gun manufacturing | | Tata Advanced Systems | Partner in design and subsystem manufacturing | | DRDO (ARDE) | Lead design and development, trials | | Ordnance Factory Board (OFB) | Partner in subsystem production and supply |
World-Class Specifications and Strategic Importance
ATAGS has achieved world-class specifications, breaking the world record for firing a 155mm round up to 48.074 km, surpassing other artillery guns in its category. This indigenous artillery gun system is considered among the best in class and has been showcased publicly, including at India's Republic Day parade in 2017.
The development of ATAGS and associated defense deals are contributing to India’s strategic defense posture by balancing internal capability building with selective international collaborations, such as ties with Italy.
In addition to the ATAGS deal, the defense acquisition council has also approved Airborne Early Warning & Control (AEW&C) aircraft systems for the Indian Air Force and "Varunastra" torpedoes for the Indian Navy. These acquisitions significantly enhance combat capabilities across all three forces.
The Cabinet Committee on Security, headed by Prime Minister Narendra Modi, cleared the deal on Wednesday, and the order for ATAGS will be split between Bharat Forge (60%) and Tata Advanced Systems (40%). These changes will be included in the new defense acquisition procedure (DAP).
This move towards increased indigenous defense production and exports is a significant step forward for India, strengthening its strategic position and reinforcing its commitment to the Make in India vision.
The ATAGS, an indigenous artillery gun system, exemplifies India's focus on self-reliance in defense manufacturing and aims to boost defense exports, with interest from Southeast Asia, the Middle East, and Africa.
The Bharat Forge and Tata Advanced Systems, key manufacturers of the ATAGS, are contributing to design, development, and subsystem manufacturing, thus fostering domestic manufacturing and potentially increasing defense exports.
