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OPINION DECEMBER 06, 2024 | The Indian Eye 11

tributing more than 60 per cent of the ed supply chain of critical compo-
worldwide production and process- nents. India could look towards Tai-
ing more than 90 per cent, which is a wan, Japan, South Korea, Australia,
nearly monopolistic capability. Also, and several African countries, other
China is the leading global supplier major sources of rare earth and criti-
of rare earth elements, which gives it cal components besides China, to di-
an edge over almost every country in versify its supply partners. The Make
defense technology and innovation. in India and Aatmanirbhar Bharat
Consequently, defense manufactur- are key initiatives in making India
ers from the US, Russia and other self-reliant by reducing foreign de-
countries depend on China. pendency. However, the indigeniza-
In his blog post, Skydio’s CEO, tion of drone manufacturing is com-
Adam Bry, said, “We are proud to plex due to its utilization in defense
support Taiwan, and we are unde- and civilian sectors. India needs to
terred.” However, he accused that take a flexible approach to meet the
“this action makes clear that the challenges of the uninterrupted crit-
Chinese government will use sup- ical mineral supply chain and reduce
ply chains as a weapon to advance India should look at these US-China dynamics from two perspectives: the US as a strong Chinese dependency.
their interests over ours.” He also in- competitor to China in the drone sector and Beijing’s mercantilist approach to safeguarding its Conclusion
formed its customers that the compa-
ny doesn’t expect new supply sources domestic industry (Agency file photo) he expansion of the sanction
to come until the spring of next year. war between the US and Chi-
It is pretty concerning that if the US, compromise military operations in sector, primarily small firms with lim- Tna represents geopolitics and
a leader in technology and innova- radio transmission, communication, ited funding sources, when we talk competition for drone manufactur-
tion in the defense sector, depends camera function, cyber security and about avoiding Chinese components ing. While China has cited the US
on China for the critical components, software security. and products. Some defense start- sale of armed drones to Taiwan as a
then where do other countries stand? However, some challenges need ups have acknowledged that around matter of national security for them,
These remarks and the US depen- to be figured out as a priority. Ac- 70 per cent of the goods in the supply the US has raised China’s fear of
dence on China show Beijing’s domi- cording to “The Print” report, the chain are sourced from China, and drone competition behind the sanc-
nance and potential in the global rare Indian army, in September 2024, transiting to the non-Chinese com- tions. India should closely observe
earth supply chain. ordered 700 Trinetra drones from ponents could increase the costs of the sanction row. On the one hand,
India’s Position and the Way AeroArc, an Indian defense technol- the products, which is a significant the DDP advisory represents caution
Ahead ogy entity. The objective behind the challenge for the domestic drone against the Chinese inroads into In-
contract was to enhance surveillance manufacturers. dia’s defense market and effort to en-
ndia should look at these US-Chi- and reconnaissance in the forested Besides the defense sector, dis- hance national security; it also signi-
na dynamics from two perspec- and high-altitude terrain in Jammu ruption in the supply chain of bat- fies, on the other hand, India’s efforts
Itives: the US as a strong com- and Kashmir and the northern bor- teries and other critical components of becoming self-reliant in defense
petitor to China in the drone sector ders along Pakistan. The founder could also impact India’s drone as- manufacturing under the Aatman-
and Beijing’s mercantilist approach and managing director of AeroArc piration in the commercial and civil- irbhar Bharat initiative. India needs
to safeguarding its domestic industry informed that the Trinetra drone, de- ian sectors. As drones are dual-use to smoothly manage sourcing from
by avoiding global competition. How- veloped by a Coimbatore-based local technology, Chinese components China and the associated cost factor
ever, India is also cautious about the facility, is an indigenized and Indian- imported to be used in the civilian in defense manufacturing.
risks associated with using Chinese ized version of the drones manufac- sector could also be diverted into Mukesh Kumar is a Research
products, mainly in defense equip- tured by Skydio. Here, the primary the defense sector, which is against Associate at the Indian Council of
ment. Earlier, India’s Ministry of concern is that if Skydio is depen- the guidelines of the Ministry of De- World Affairs, New Delhi.
Defense (MoD) took steps to curtail dent on components made by China, fense. Views expressed are personal
Chinese influence in the Indian de- where did the AeroArc source bat- In such circumstances, India
fense market. teries and other components from? should be prepared to meet the future This article first appeared in the View-
On 25 June 2024, India’s De- Earlier, the MoD put a hold challenges. India needs to reduce its point section of the website (www.icwa.
partment of Defense Production on the order of 200 drones from dependency on China and diversify in) of Indian Council of World Affairs,
(DPP) issued a formal advisory to Chennai-based Daksha Unmanned its sources to ensure an uninterrupt- New Delhi, on November 28, 2024
major defense industrial bodies, such System Pvt. Ltd. for using Chinese
as the Associated Chambers of Com- components in their drones. Garuda
merce and Industry of India (ASSO- Aerospace Pvt. Ltd. and Sky Indus-
CHAM), the Federation of Indian tries have faced similar accusations
Chambers of Commerce and Indus- of using Chinese components in
try (FICCI) and the Society of Indi- their defense products. However, the
an Defense Manufacturers (SIDM), firms rejected such accusations and
urging them to regulate their mem- were assured they would comply with
bers from using Chinese components government regulations in their de-
in their products. The letter warned fense manufacturing.
about the risks of using Chinese Dependence on China and the
components and aimed towards cur- associated cost of products is yet an-
tailing, in a phased manner, Chinese other significant challenge, mainly
influence in India’s defense manu- for start-ups and emerging defense
facturing and ecosystem. The adviso- players. The problem of Chinese
ry has stressed that drones equipped dependence and associated costs be-
with Chinese components could comes more grievous for the private

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