India’s quest for self-reliance in military hardware has been underway for more than three decades now. While numerous committees have been formed over the years to examine the issue and recommend the way forward and incremental measures have been introduced from time to time, it is only recently that the MOD is in mission mode to achieve a transformation in the Indian military Industrial complex. The adverse effects of the Russia – Ukraine war on the delivery of equipment and spares from Russia as well on global supply chains, has highlighted the urgency of this transformation, especially in light of the tensions on our northern borders. Towards this end various measures have been implemented, primarily by way of procurement policies focused on indigenous products, discouragement of imports, rationalization of tax structures to provide a level playing field to all players private or public, encouragement of exports, incentives for SMEs/MSMEs, funding for defence innovations, streamlining of acquisition procedures including defence offsets, to name a few. The key agent for these changes has been the Defence Acquisition Procedure 2020 (DAP 2020). It is however appropriate at this stage to assess the adequacy of these measures and identify what more can be done.
India’s defence industrial base (DIB) remains weak despite decades of foreign equipment purchases. Countries like Turkey, South Korea, and Israel leveraged smaller procurements to develop robust defence ecosystems. India’s lack of clear policy, accountability, and strategic coordination has resulted in over 65% dependence on imports. A Defence Industrial Ecosystem (DIE) is essential for self-reliance, integrating government, industry, R&D, and academia. Establishing an independent Defence Technology Commission (DTC) under the PMO, supported by an Inter-Ministerial Committee, can drive policy, innovation, and accountability. Transparent, well-structured policies, strategic global partnerships, and a competent workforce are critical for atmanirbharta in defence.
India’s defense industry is well-positioned to tap into Europe’s €800 billion “ReArm Europe” initiative, leveraging cost-effective manufacturing, faster delivery, and strategic alignment. Key focus areas include artillery and ammunition (ATAGS, 155mm shells), missile systems (BrahMos, Akash), drones (ISR platforms), and cybersecurity (EW systems). India should push exports via MoD-to-MoD talks, co-production with European firms, and offset deals to bypass protectionism. With a 30-50% cost advantage over U.S./EU systems, Indian firms can secure a €10 billion+ market share. Urgent policy reviews and proactive industry leadership are needed to capitalize on this rare opportunity.
Engine overhauling is a comprehensive rebuild process conducted after a designated operational period to restore engine performance at a fraction of replacement costs. Unlike routine maintenance, overhauling involves complete disassembly, inspection, and refurbishment of components using new or reclaimed parts. Condition-based overhauling enhances cost-effectiveness by evaluating component wear before stripping. The overhaul process requires specialized technology, training, and documentation, differing from manufacturing methods. Quality control through rigorous testing ensures reliability. Post-overhaul feedback aids continuous improvement. This structured approach enhances engine longevity, reduces inventory complexity, and optimizes resource utilization, making it a vital practice in cost-efficient asset management.
Maintenance is not just an expense—it’s an investment that prevents financial losses, enhances safety, and extends asset lifespan. The Qantas A380 crisis highlighted how poor inspections led to a $100 million loss. Toyota’s predictive maintenance cut downtime by 30% and repair costs by 40%. London Underground’s proactive approach extended asset life and saved millions. Shell & BP’s corrosion monitoring prevented disasters and ensured compliance. Across industries, predictive and preventive maintenance reduces downtime, lowers costs, extends asset life, and enhances safety, proving that maintenance is essential for long-term success and efficiency.
India’s Defence Budget 2025-26 is ₹6.81 lakh crore, comprising 1.85% of GDP, with ₹1.8 lakh crore for capital outlay and ₹3.12 lakh crore for revenue expenditure. Despite a 9.5% rise over BE 2024-25, defence spending as a percentage of GDP has declined over decades. The budget prioritizes indigenous procurement (₹1.11 lakh crore) and modernization but faces challenges from slow procurement processes and rising pension costs. National security concerns persist, necessitating increased R&D investment, policy reforms, and higher capital allocations to enhance military preparedness and ensure strategic deterrence. A non-lapsable modernization fund is crucial for sustained capability enhancement.
The Indian Army can leverage Generative AI for secure, on-premise knowledge management, operational analysis, and strategic decision-making. The system integrates multi-format data, enabling real-time intelligence retrieval, AI-powered decision support, and automated report generation. It enhances training, cross-unit collaboration, and cybersecurity through AI-driven threat detection and response. Deployment involves phased implementation, from data collection to full-scale adoption across commands. Key applications include intelligence analysis, predictive maintenance, war gaming, UAV coordination, and logistics optimization. By harnessing AI, the Army can enhance battlefield awareness, improve decision-making, and strengthen national security while maintaining full control over sensitive military data.
South Korea’s development of a 1,000-horsepower tank engine marks a significant achievement, highlighting the strategic importance of indigenous engine manufacturing. Countries like Germany, the U.S., Russia, and China dominate this sector, but India has the potential to develop its own. With strong capabilities in automotive engine manufacturing from companies like Tata Motors, Mahindra, and Ashok Leyland, India can scale up to produce a tank engine. To achieve this, the government must incentivize private sector participation through assured procurement, financial support, and collaboration with defense organizations. Indigenous engine development will enhance self-reliance, cost efficiency, and defense readiness for India.
India has declared 2025 as the Year of Defence Reforms, focusing on integrated theatre commands, self-reliance (SR), and acquisition reforms. Decades of reliance on foreign defence equipment have led to operational challenges, highlighting the need for a robust Defence Industrial Base (DIB). Challenges to SR include technological complexity, economic constraints, and bureaucratic hurdles. A reset in military-industry-DRDO collaboration is crucial for indigenization. Reforms should focus on indigenous capability building, defence industrial strategy, and long-term investments. A shift from assembly-based manufacturing to true self-reliance is necessary for sustained military effectiveness, operational independence, and strategic resilience against emerging threats.
The launch of DeepSeek’s AI model, R1, on January 20, 2025, has disrupted the U.S. tech industry due to its high performance and low production costs. Developed in China using open-source models and cost-efficient hardware, R1 was trained for just $5.6 million, far less than U.S. counterparts. Its impact caused major market losses, including a $600 billion drop in Nvidia’s valuation. This shift is compared to the 2000 dot-com bubble, highlighting AI’s rapid evolution. As competition intensifies, nations must streamline innovation to stay ahead, emphasizing efficiency, agility, and technological leadership in the evolving AI landscape.
