Explained: Why India's arms imports have declined

Firstly, lets look at India's exports status. Although India is a big importer, it is taking measures to drive exports. Last year, it was announced that country was exporting over 40 defence equipment to nations like the US, Germany, Indonesia among others.

Since 2014, India's defence exports have grown from Rs 2,000 crore to Rs 17,000 crore in 2020. PM Modi has said that he is targeting to increase arms exports to Rs 35,000 crore over the next five years.

According to SIPRI, India joined the exporters' list in 2016 and is ranked 24th on the list, contributing 0.2 percent of global exports.

According to SIPRI, India's push to make it self-reliant in defence manufacturing has helped in lower imports. Reports suggest that the Ministry of Defence has signed 304 contracts since 2015, out of which 190 contracts have been awarded to Indian vendors. In Budget 2021, Finance Nirmala Sitharaman set a target of Rs 1.75 lakh crore turnover in manufacturing by 2025.

Moreover, the country's complex procurement processes contributed to the steep decline in import of arms. The government is aiming to reduce dependence on Russia for weapons.

The government is taking measures to step up manufacturing and invite foreign manufacturers to make in India. The biennial Defence Expo held in Lucknow in February 2020 saw participation from over 1,000 domestic and foreign companies. The subsequent increase in export share and decrease in import share indicates that the efforts to Make in India have been successful.

Retd Air Marshal Anil Chopra told Hindustan Times, "India's defence industry is coming of age."

However, SIPRI expects India's arms imports to grow over the next few years. It said India perceives increasing threats from Pakistan and China, this combined with significant delays in its ambitious manufacturing plans, will cause the imports to grow over the years.

"Based on its outstanding deliveries of combat aircraft, air defence systems, ships and submarines, India’s arms imports are expected to increase over the coming five years," the report said.