Ajai Shukla: Israel develops capabilities, India pays
India must emulate Israel in creating defence industry
Ajai Shukla / New Delhi Feb 09, 2010, 00:23 IST
For many Indian commentators, especially those on the right, Israel provides an inspiring example of how to deal with external threat. One could equally argue that notwithstanding its comfortable position as the regional hegemon, Israel and its citizens remain insecure, xenophobic and afflicted by a disturbing sense of victimhood. It’s a debate that continues, especially in that country.
What Israel unquestionably does illustrate for India — with this country paying hundreds of millions of dollars annually for the lesson — is a well-considered plan for building its defence industry. In becoming India’s biggest defence supplier, Israel has bared a hard-nosed strategy that our policy-makers must grasp and emulate.
Since Israel does not market aircraft or ships, its defence companies have focused on the lucrative market for upgrading India’s predominantly Russian weaponry, including MiG-21 fighters, ship-borne missiles and T-72 tanks. Their first step was to understand Russian technology, for which Israeli defence companies accepted initial contracts at cost price to build their engineers’ capabilities. With that experience gained — at India’s cost, one must note — Israeli systems designers progressively graduated up the complexity scale. Today, Israel’s defence industry, with capabilities honed across a generation of Russian platforms, can bid across the globe.
The opportunities for Israel are vast. Some 30,000 T-72 tanks are in service worldwide, including 2,500 in India. But Israel, not India or Russia, will feed off that upgrade market. India provided Israel with the tanks, the opportunity and the money for creating that capability. Ironically, the Ministry of Defence (MoD) ignored India’s own defence industry; its undeniable competence could have been as easily translated into capability.
Israeli industry garnered another windfall from its offer to build the Phalcon Airborne Warning & Control System (AWACS). This airborne radar mounted on a Russian IL-76 aircraft, allows airborne controllers to monitor and control airspace for hundreds of kilometres around. No Israeli company had ever designed such an AWACS before, but India handed over US $1.1 billion (Rs 5,000 crore) to Israel Aerospace Industries (IAI) and Elta. Hundreds of Israeli designers learned on the job, building AWACS capability on Indian money. Israel will now build another three AWACS for India, several for the Israeli Air Force and export more to Chile and Singapore.
Another feeding trough is the ongoing upgrade of Indian Navy ships, especially the technologically-challenging system for “net-centric operations”. This digitally interlinks the fleet’s sensors and weapons — in the air, on the surface and underwater — into seamless information and command networks. The two Israeli companies bidding for this strategic contract, Rafael Advanced Defence Systems and IAI, began building capabilities while fitting Indian warships with the Barak missile early this decade. With detailed knowledge of the warships’ Russian combat management system, Israeli engineers are now ready to design the net-centric operations system, the crucial nerve centre in war.
In this, as in other upgrade contracts, India’s MoD has ignored the advantages of building indigenous capability. Precision Electronics Ltd, a Delhi-based company that engineers high-tech defence electronics, joined hands with US giant Raytheon to bid cheaper than Rafael and IAI. It seemed as if, at last, Indian capabilities would also be built. But, mysteriously, the MoD scrapped that tender last month. There is no way to verify the industry buzz that the Israelis contrived that cancellation; the only thing known for sure is that Rafael and IAI are being investigated by the CBI for corruption in the Barak sale. But it would be safe to bet that, when fresh bidding is ordered, the Israelis will come in with cheaper prices.
The Israeli strategy is: a financial loss is acceptable, to curb Indian defence industrial capability. Each time an Indian company develops capability in a strategically-vital domain, foreign companies will be shut out from that realm forever.
Strangling the competition at birth is business, not criminal activity. Israel can be expected to do that. What defies logic, though, is the MoD’s dogged refusal to nurture Indian R&D the way it has Israel’s. This is of a piece with the MoD’s approach to Russia during that country’s troubled 1990s. With Russia’s economy bankrupt and military design bureaus and manufacturing units in dire straits, India placed a string of equipment orders — Sukhoi-30MKI fighters, Talwar class frigates and T-90 tanks, among others — providing life support to that dying establishment. China, in contrast, simply bought over a bevy of top Russian design engineers, paying them to live in China and build capabilities within China’s defence industries.
Ashok Kanodia, the MD of Precision Electronics, admires and envies the Israeli companies. Admitting that his own strategy involves bidding at cost price, Kanodia explains, “My gain will be the engineering capability and experience that is created, with the MoD paying the bill. Monetary profits are for later.” But he ruefully admits that with the MoD apparently unconcerned with developing Indian capabilities, Israeli firms are now unstoppable. The MoD, it would appear, has failed to understand that the essence of defence indigenisation is about building domestic design capability. All that South Block seems to have is an oft-repeated target: moving from 70 per cent reliance on foreign equipment to 70 per cent supply from Indian companies. But how exactly this will be done, the MoD has never pronounced. Since a target cannot substitute for a strategy, it is time that South Block implements a clear policy that would allow Indian companies — especially in the private sector — to build their capabilities with some assurance of business. That might be the best thing that Israel has done for India.
This article focuses only on what Israel sold to us and not on what all they risked internationally to give it to us and develop with us. The article is clear misunderstanding of the facts. Where no country is willing to give sensitive technology to us Isreal did it and such article only fuel to spil good relation among the two nations.
There's no attempt by Israel to squelch the budding Indian defense industry. Quite the opposite. There's ever increasing cooperation and joint development by these two countries. One example is the jointly developed Barak 8 missile interceptor being installed on Israeli and Indian naval vessels. (Turkey wants it, but Israel and India jointly decided no, for fear its technology could fall into Iranian or Pakistani hands.)
And it's not quite true that Israel doesn't market aircraft. They once sold their own Kfir fighters and were developing the Lavi. (These days they sell world-class drones, of course.) But an India-Israel designed 5th generation fighter is certainly possible down the road.
Well, this is material fit for the worthies in Parliament to grill the defence minister with - if they have time from feeding at the trough themselves and the brains to understand the issues.
I will beg to differ on the comments which put the Indian defense capabilities on the fore front. India has achieved a certain level of supremacy in missile production purely because of the initial hard work performed by ISRO. The "so called" DRDO, is nothing but a huge black hole which gulps a lot of cash and give precious little in return. This eventually ensures that the power brokers sitting in our capital have a field day when it comes to earning their livelihood. Israeli technology is one of the finest because they are living under constant threat. We do not have it because of sheer complacency and the "promotion based purely on seniority not performance" policies.
why cannot we invest in R and D and develop weapons for our country by ourselves.Even the past kings who ruled India did that. IS that becs the politicians dont get the comissions they dont encourage. Or is there not a system to encourage R and D in our country. Even Now it is not too late to catch up.
So fare we have been glorious users of foreign products including soap, toothbrush etcetc . How can India be a superpower
Excellent Article that gives shocking insights of the Modus Operandi of MoD. It is sad that while we talk of Self Reliance and Self Sustainance in Defence Capabilities, we just don't bother to provide the much needed opportunities to build indigenous strategic capabilities.. thanks to corruption which is becoming the bottleneck in the India Growth Story and here the same is evident at the highest levels. May God Bless India...
Israel receives billions of dollars in aid from the US each year.The US hands over countless already developed hi tech products to the israelis for maintenance and product support. This transfer of technology allows the israelis to learn, modify and improve upon these designs and re-sell them without much complaining from the US. The US and israel have a special relationship. Being surrounded by hostile neighbours, their very existence is a high priority for the israelis. Being a largely homogenized country definitely helps. None of the above applies to India and the corrupt political system definitely does not help.
This is a very mis informing article, the Indian defence industry is not as mature as the Isreally defence industry, the Irsealis have had long experience with russian weapaons using captured russian weapon systems from their wars. Upgrading is very important for the Armed Forces the last thing you want to do is have a upgraded T-72 which cant be competitive on the battle field, all you have to do is like at the indiginious 'upgraded' Iraqi T-72s which faught in the Iraq wars. In addition reguarding the AWACS, Isreal had an AWACS system 20 years in the making with a majority of thier technology from America, India indirectly got a world class AWACS system for a very very good price.
India has place orders and does co develp wapens and systems whit Russia and Israel. But you will see those systems been upgraded and bild in Indian waepons. There are many examples. See Greenpine Avatar in Swordfish radar. But these countries are friends who are strong and connected whit India. Does China or other nations have that. No all of there are buyers but no friends. India is they onely country whit two verry verry powerfull friends. It's in the intrest of Israel and Russia to have a powerfull India.
Well put, Ajai. I am in complete agreement. It is perplexing why MoD is not building up capabilities in the private sector. Keep longterm research and projects vital for core development with DRDO and PSU's if necessary but get the private sector involved in making hi-tech guns, night vision equipment, all terrain vehicles, UAV's etc etc etc. We can easily put another 100,000 engineers to work and develop in-home capabilities. We can build it cheaper than anybody and then export them all over the world. The govt. can even provide seed money for some breakthro ideas and nurture them. This just makes so much sense. But commonsense seems to be an uncommon commodity at MoD and the higher levels of govt. God bless us.
I don't even know why I read articles like this, I just get angry every time because I know what corrupt, stupid and blind imbeciles India has running the country who fail to invest in India and build up our infrastructure and defense industry.
The author is right (we shouldn't be building other countries industries) and so are the comments, while there has been some moderate progress, for the most part, indigenous attempts have been failures.
I am extremely disappointed at what a tragic mess India has been in for the past 30 years, when by now they could've easily been on par with China militarily and perhaps economically as well if we had firm pro-business leadership. But India continues to be run by the same useless leftist scumbags who've kept the country backwards for so long.
Anyways, good luck India-hopefully you get your act together in the next decade and stop being an ugly embarrassment to all of us Indians.
Entire Indian power base is corrupt. Has anyone questioned as to why India is buying all these gadgets for billions when in fact India will never ever use them!!! History shows it that in past 30 years none of the weapons India possessed has been able to counter death and destruction of India and its people. More people have died in past 30 years (no-war) from enemy bullets than all wars combined.........In short its all money making schemes for certain individuals and institutions. And all this is done at the expense of domestic industry because there are no commissions to make!!!!
Good post. But Ajai you missing the one crucial point. We've throw billions of rupees at the Israelis and the weapons are at our door, may be a couple of years late.
We've been doing the same with DRDO and others, but we've have to wait for DECADES to see a half baked version. How long should the country wait for the LCA, Arjun, etc. They should have been out atleast a decade ago, and we'd be going through round 1 or 2 of enhancements and energized to build the next version. Instead we've cornered ourselves to building based on decade old specs and improvising withing those limiting constraints.
Mr. Antony special thanks for keeping us safe at the hands of external.
Brilliant article that demonstrates the politicos attitude towards India capability. But question remains how many people are concerned about these policies? I am yet to see a country being run by bosses as strange as this where even the securities issues are held at toss and placing far less confidence in indigenisation.
Without effort one cannot succeed..
@Andy... wakeup from your slumber.., and see what happening around you before criticizing nation's R & D establishment. Just for your kind information... AGNI-1... AGNI-2... AKASH & NAG Missiles is in production and already inducted in Indian Military. What ajai point out is partly true because our defense R & D sector din't got much money and priority from Govt.
So let me know some Indian Companies which has suucceded..
Missile Development (IGMP I think)...been 20 years +...Agni 3 is still being tested so is Akash,Nag was probably stopped..etc
LCA is a joke...
DRDO is a bigger joke...
I mean the 10% bribe in defense is pretty obvious ,prob Isralesies are good at that...but do we have anything to even show which is war worthy?
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