India Needs a Military Industrial Complex: Economic and Defence Imperatives for a Resurgent India

This paper reviews the sluggishness of manufacturing sector growth in India in comparative
and historical perspective and argues that without accelerated growth in this sector India’s
industrial transition will be incomplete. We argue that, India faces multi-faceted threats to its
security, particularly from China and Pakistan and from the new dispensation in Afghanistan.
India has fought open wars with both China and Pakistan and faces further threats from the
expansionist tendencies of China in countries in the immediate neighbourhood of India and
from frequent terrorist activities directed toward India from Pakistan. India also needs to
play a defence role in its extended neighbourhood. For all these reasons India needs a
stronger military. The development of the military sector and enhanced arms exports will
provide a ready market for expanded defence manufacturing. Thus, India needs a military
Industrial Complex for augmenting economic growth and enhancing national security.