Rafale Deal Highlights India's Defence Manufacturing Crisis: A Legacy of Nehruvian Socialism

• India plans to finalize a $36 billion agreement with France for 114 Rafale F4 fighter jets, adding to nearly $60 billion spent on French aircraft in a decade.
• The article argues that this reliance on foreign procurement stems from India's historical defense industrial policy, which reserved manufacturing for state-owned enterprises.
• State-owned entities like HAL and DRDO became monopolies, leading to slow innovation and production, exemplified by the delayed Light Combat Aircraft (Tejas) program.
• The Indian Air Force faces a critical shortage, operating 29 squadrons against an authorized strength of 42, making foreign acquisitions necessary despite long-term costs.
• While current government initiatives like "Make in India" are positive, they are corrections to a deeply entrenched structural problem, not quick fixes for decades of underdevelopment.

Why It Matters: India's reliance on foreign defense purchases is a consequence of historical state-controlled manufacturing policies.