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.
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.
The article critically examines India’s Make in India initiative in the defense sector, highlighting the need for genuine self-reliance (SR) through indigenous technological and industrial capability development. It emphasizes shifting from dependency on imported systems to fostering local manufacturing of foundational systems like engines, powerpacks, and electronics. Drawing lessons from ISRO’s technology tree approach, the article advocates for strategic planning, deeper localization, and incremental upgrades of existing platforms over de novo developments. It calls for a pragmatic defense industrial strategy, prioritizing technology insertion, local supply chains, and leveraging collaborations for long-term operational readiness and strategic autonomy.
The new Tata Aircraft Complex in Vadodara marks India’s first private Final Assembly Line (FAL) for military aircraft, managed by Tata Advanced Systems Ltd (TASL) in collaboration with Airbus Defence. This facility will assemble, test, and maintain C-295 aircraft to replace India’s ageing AVRO fleet, with 16 units from Spain and 40 assembled in India by 2031. With advanced features like short take-off capability and indigenous electronic warfare systems, the C-295 suits varied tactical missions. This project represents a transformative step for India’s aerospace manufacturing and could lead to further defense collaborations, enhancing India’s private sector MRO capabilities.
India’s growing defense exports, such as the Tejas fighter jet, Pinaka rocket launcher, and BrahMos missile, present a unique opportunity for its defense veterans. With extensive experience maintaining both Western and Eastern military systems, veterans can offer crucial maintenance and training services to countries procuring Indian defense equipment. Formalizing these deployments through government agreements would enhance diplomatic ties and support the operational readiness of exported platforms. Veterans’ expertise is vital for addressing challenges in military technical training, making them valuable assets in bolstering global defense capabilities while advancing India’s leadership in defense technology.
The article highlights the critical need for effective MRO (Maintenance, Repair, and Overhaul) support for India’s defense forces, especially with active threats on its borders. It stresses the importance of addressing spare part shortages, capacity constraints, and industry reluctance, while integrating MRO support into joint operations. Lessons from the Russia-Ukraine and Israel-Hamas conflicts emphasize the importance of robust MRO for battlefield success. India must create capacity to maintain legacy, current, and future equipment, leveraging public-private partnerships and veterans’ expertise, to ensure readiness for both peacetime and wartime scenarios.
The article highlights the global military industrial bases (MIBs) of major countries like the U.S., Europe, Russia, China, and India, emphasizing the need for self-reliance in defense production. While the U.S. and Europe lead with advanced defense contractors and collaboration, Russia and China focus on state-controlled systems. India is making strides toward indigenization through initiatives like Atmanirbhar Bharat, boosting R&D, and encouraging private sector participation. To further strengthen its MIB, India must increase R&D investment, streamline procurement, leverage MSMEs, and expand global collaborations to enhance its defense export potential and strategic influence.
The article discusses the concept of Strategic Readiness (SR) and Military Effectiveness (ME), using current conflicts like the Gaza war and Ukraine war as examples. SR refers to a military’s ability to provide forces to meet strategic demands, assessing factors like manning, equipment, training, and logistics. ME measures a military’s competitive advantage in combat, requiring agility, technological superiority, and resilience. The text highlights how readiness degrades over time and the importance of technological dominance, soldier readiness, and operational capability. It stresses the need for innovation and resilience to counter surprises in modern warfare.
