India's defense industry is rapidly expanding, with the goal of becoming a leading aerospace and military hardware manufacturer by 2025. However, as production ramps up, the government is tightening regulations to prevent military equipment from falling into the wrong hands.
A report from the Economic Times on May 28 highlights that the Ministry of Defence is increasing oversight on military equipment manufactured in India. The ministry has instructed private manufacturers to strictly adhere to end-user certification (EUC) rules after reports emerged of Indian-made munitions ending up with unintended recipients.
When the government refers to 'wrong hands,' it means that weapons have reached unauthorized countries or organizations, including conflict zones without proper permissions. Colonel Abhay Balkrishna Patwardhan (Retd) emphasized that the goal is to prevent Indian weapons from reaching terrorist organizations or other unauthorized entities.
Earlier this year, reports suggested that Indian-made 155 mm artillery shells were being used by Ukraine. The Indian government denied these claims, asserting that no artillery ammunition had been exported to Ukraine. Despite this, images on social media in May showed Indian-made 125 mm shells being used in Ukraine, raising further concerns.
Previously, arms manufacturing in India was controlled by government-owned Ordnance Factories. The introduction of private sector involvement in arms exports has increased the risk of these weapons falling into unauthorized hands if not properly monitored. Additionally, outdated weapons and ammunition in India are disposed of as scrap, which can potentially end up in the gray market and be reverse-engineered.
The Ministry of Defence aims for a turnover of $22 billion in aerospace and defense manufacturing by 2025, with $4.3 billion in exports. In the last fiscal year, exports reached $2.5 billion, primarily driven by the private sector. However, Indian companies are restricted from exporting weapons to Ukraine, Turkey, China, and Pakistan.
To prevent unauthorized use, the government has strengthened end-user certification rules for exports. An EUC ensures that the purchaser is the final recipient and does not intend to transfer the materials to another party. The Ministry of Defence is also tightening oversight of imports through an internal portal to monitor the import and consumption of critical materials like explosives and primers.
The Saksham Bharat initiative encourages domestic production of parts and weapons previously imported. While exports are strictly controlled, imports have been less regulated. The new portal will track the usage of imported materials to ensure they are used for approved purposes, preventing unauthorized sales or stockpiling.
As India expands its military-industrial capabilities, it must balance legitimate exports and domestic production while preventing its products from reaching destabilizing entities. Through stringent regulations and digital surveillance, India aims to ensure its weapons remain in responsible hands, avoiding potential diplomatic crises.