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

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  • Raghbendra Jha
  • Ashok Sharma

Abstract

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.

Suggested Citation

  • Raghbendra Jha & Ashok Sharma, 2023. "India Needs a Military Industrial Complex: Economic and Defence Imperatives for a Resurgent India," ASARC Working Papers 2023-01, The Australian National University, Australia South Asia Research Centre.
    • Handle: RePEc:pas:asarcc:2023-01
    as

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    File URL: https://acde.crawford.anu.edu.au/sites/default/files/publication/acde_crawford_anu_edu_au/2023-06/asarc_wp2023-01.pdf
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    References listed on IDEAS

    as
    1. Oishee Kundu, 2021. "Risks in Defence Procurement: India in the 21st Century," Defence and Peace Economics, Taylor & Francis Journals, vol. 32(3), pages 343-361, April.
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    4. Raghbendra Jha & Sadia Afrin, 2021. "Structural Transformation in South Asia: Does the Pattern Ensure Growth Momentum?," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 22(1), pages 7-28, March.
    5. Matsuyama, Kiminori, 1992. "The market size, entrepreneurship, and the big push," Journal of the Japanese and International Economies, Elsevier, vol. 6(4), pages 347-364, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    India; defence industry; economy; manufacturing; lead sector; security threat; China and Pakistan; great power; Indo-Pacific;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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