India’s new defence minister tasked with modernising military

NEW DELHI — Ms Nirmala Sitharaman, who was appointed India’s first woman defence minister in 35 years, has her work cut out.

She has to deliver on Prime Minister Narendra Modi’s goal of modernising the nation’s Soviet-era military equipment as border tensions with China and Pakistan simmer.

Most recently the country’s Minister for Commerce and Industry, Ms Sitharaman was India’s main negotiator at global trade talks and succeeds Finance Minister Arun Jaitley who relinquished his additional charge of the key ministry.

Prior to her ministerial stint, she was a prominent party spokeswoman for the ruling Bharatiya Janata Party (BJP) during Mr Modi’s successful election campaign in 2014. Under Ms Sitharaman, export growth has slowed while free trade talks with key partners have stalled.

In her new role she will have to accelerate Mr Modi’s goal of spending as much as US$250billion (S$339billion) by 2025 on defence hardware, including jet planes, naval ships and drones as bigger neighbour China flexes its military muscle in the region.

Her commerce ministry duties also gave her oversight of Mr Modi’s flagship “Make in India” programme aimed at boosting domestic manufacturing, an initiative that included a significant defence focus.

“Sitharaman’s elevation to defence is a bit of a surprise,” said Mr Shailesh Kumar, a senior Asia analyst with the Eurasia Group risk consultancy, who added that she did not have any particular “break-out” policies in her previous post. “Her selection is likely aimed at leveraging her experience in the commerce ministry to make defence as much about economics as security.”

Ms Sitharaman takes over amid increased tensions with Pakistan and China, as well as active insurgencies in India’s east, north-east and in the disputed region of Kashmir.

India and China on Aug 28 agreed to end a months-long military standoff in the Himalayas, with both sides seeking to portray the withdrawal as a victory.

Ms Sitharaman also inherits a bureaucratic ministry known for equipment procurement delays, oversight of around 1.4 million active armed forces personnel and a politically sensitive portfolio that straddles everything from veterans’ pension issues to national security challenges.

Non-state companies, which have been allowed to compete for orders from the military, are betting her focus on the “Make in India” programme will prompt Ms Sitharaman to accelerate measures to boost local production.

“Sitharaman getting full time charge of the defence ministry was much needed in view of the current geopolitical situation,” said Mr Manish Nuwal, managing director at Solar Industries India Ltd, which plans to bid for orders ranging from gun propellants to tank ammunition. “With her earlier experience in the commerce ministry, it will help in increasing private participation in the defence sector under the ‘Make in India’ programme.”

That maybe one of her most important tasks as the country’s defence equipment ages and deteriorates.

India’s enormous army has also grown over the years as rivals such as China have streamlined and modernised their armed forces.

“Her biggest challenge will come from right-sizing the force structure, procedural hindrances in defence procurement and issues related to self-reliance in defence production,” said Mr Deba Ranjan Mohanty, director at the Indike Analytics, a New Delhi-based defence research organisation, who suggested her “diligence” will help her “quickly pursue reforms” that could help increase localised defence production.

Ms Sitharaman’s promotion had its critics as export growth has slowed for four straight months to July and free trade deals including with the European Union have been languishing. That means the nation is missing the opportunity to boost manufacturing and employment, a key electoral promise for Mr Modi, who pledged to create enough jobs for one million youth joining the labour force every month.

Modi is “rewarding a failure” said Mr Mohan Guruswamy, chairman of the New Delhi-based Centre for Policy Alternatives. “It takes someone who understands strategy, technology and the operation of the forces to head it.”

While Ms Sitharaman did not respond to numerous calls for comment, she told reporters after her inauguration that “it just makes you feel sometimes that cosmic grace is there,” the Scroll reported.

Still her access to Mr Modi could help her get the defence ministry into shape. “She is tough and smart, it’s a good choice,” said Professor Harsh Pant, an international relations expert at King’s College, London. “But bringing coherence to Indian defence has never been easy. Having this kind of confidence from Modi will certainly go a long way.” BLOOMBERG