Milestones in India’s aerospace sector started from 1940 with the formation of Hindustan Aeronautics Limited (HAL), which particularly succeeded in designing helicopters. On the other hand, fighter aircraft have not yet been developed by India because crucial technologies like indigenous engines and advanced avionics are missing in this field.

Countries like the US and China are advancing sixth-generation fighter programs. China is showing faster development cycles and significant investment. India’s defence budget constraints, at $73 billion, compared to China’s estimated $400 billion, pose challenges in closing capability gaps.

Private Sector Involvement

Private players such as Tatas, Adani and Reliance have entered the aerospace. They are manufacturing component parts for global OEMs. Domestic R&D capabilities, however, remain relatively under-developed. Dependence on imported technologies and the weakness of an innovation ecosystem hinder the progress.

Critical Obstacles to Indigenous Development

  • Long Development Cycles: Projects like the Advanced Medium Combat Aircraft (AMCA) have aggressive timelines.
  • R&D Investment Deficit: India spends only 5% of its defence budget on R&D, significantly lower than the recommended 10–15%.
  • Technological Dependence: The country has importing critical systems like aero engines, stealth coatings, and UAV payloads, thereby complicating integration.
  • Lack of Competitive Ecosystem: The HAL monopoly and limited private sector engagement critically stifle innovation.

Strategic Recommendations

  • Increase R&D Funding: Raise the defence budget on R&D funding to 10–15% as recommended on the global peer base.
  • Streamline Procurement: Simplify and accelerate procurement processes so that acquisitions become more timely.
  • Strengthen Private Sector Participation: Incentivize private R&D and task UAV and HALE drones development to private parties under the Make in India initiative.
  • Collaborative Development: Task forces of IAF, DRDO, and academia to focus force-multiplier aero-engine development.
  • Independent Oversight: Institutionalize technocrat-led oversight bodies for managing DRDO and HAL, as in the nuclear and space domains of India.
  • Focus on Precision Weaponry: Focus on indigenous long-range weapons such as Rudram and Astra missiles in terms of development and production.

The IAF must undergo qualitative and quantitative transformation to meet the evolving geopolitical challenges. It is unlikely that India will surpass China’s aerospace capabilities, but credible deterrence can be established. India has low-cost human capital; public-private partnerships can be encouraged, and strategic reforms adopted to bridge the gaps that exist.

The proposed measures are to ensure that India’s aerospace power matches its strategic ambitions and cements it as a global leader in the aerospace industry.