INDIA’S DEFENCE SECTOR AMID EMERGING THREATS

A major terrorist attack in Pahalgam, Kashmir, killed 26 civilians. India launched Operation Sindoor, targeting militant infrastructure in Pakistan and PoK.

Major Developments in India’s Defence Sector

1. Indigenous Defence Production Surge

  • ₹1.27 lakh crore in indigenous defence production (FY 2023–24), +16.7% YoY.
  • 65% of defence equipment is domestically produced.
  • Positive Indigenisation Lists driving import substitution under Make in India.

2. Expansion in Defence Exports

  • India exports defence products to 100+ countries.
  • ₹21,083 crore exports in FY 2023–24 — 30x growth over a decade.
  • Target: ₹50,000 crore exports by 2029.

3. Defence R&D Innovation Push

  • iDEX & Technology Development Fund empowering startups/MSMEs.
  • 619 startups engaged; 549 problem statements issued (as of Feb 2025).

4. Defence Industrial Corridors (DICs)

  • UP & Tamil Nadu DICs: ₹8,658 crore invested so far.
  • Goal: Attract ₹53,439 crore; boost domestic production and FDI.

5. Modernisation of Armed Forces

  • ₹62,700 crore procurement for 156 LCH Prachand helicopters (Mar 2025).
  • Integration of SCALP, HAMMER, Loitering Munitions — used in Operation Sindoor.

6. Global Strategic Partnerships

  • BrahMos export to Indonesia worth ₹3,800 crore.
  • Joint military exercises with Japan, Philippines, Malaysia reinforce global presence.

7. Indigenisation of Critical Platforms

  • INS Vikrant (2022): 76% indigenous aircraft carrier.
  • T-90 Bhishma tank overhaul – lifecycle extension of existing assets.

8. Enhanced Testing Infrastructure

  • 7 advanced facilities approved under Defence Testing Infrastructure Scheme.
  • Focus areas: drones, electronic warfare, unmanned systems.

Key Challenges

1. Tech Dependence

  • 36% of procurement still import-dependent (2023).
  • Lag in high-end tech: aero engines, UAVs, AESA radars.

2. Procurement Delays

  • Complex procedures delay induction — Rafale, Scorpene examples.
  • DAP reforms yet to fully materialize.

3. Budgetary Constraints

  • ₹6.81 lakh crore defence budget (2025–26), but only ₹1.8 lakh crore for modernization.
  • DRDO receives just 3.94% of total defence budget.

4. Limited Private Sector Role

  • DPSUs dominate; private sector share only 21%.
  • Barriers in accessing defence tenders and strategic projects.

5. Export Competitiveness

  • India behind global arms exporters in volume & tech edge.
  • Tejas jets face market resistance despite indigenous appeal.

6. Cyber & Electronic Warfare Vulnerability

  • Weak cyber defences compared to China.
  • NDCC (Defence Cyber Command) yet to be operationalized.

7. Internal Security Burden

  • Terrorism in J&K, insurgency in Northeast diverts focus from conventional threats.
  • g., Kuki-Meitei conflict in Manipur.

8. Lack of Integrated Strategy

  • Delay in Integrated Theatre Commands.
  • Tri-service coordination remains weak despite creation of CDS post.

Way Forward: Strategic Measures

Boost Defence Tech Innovation

  • Invest in AI, quantum, autonomous systems.
  • Create global-tech tie-ups, R&D hubs.

Strengthen Public-Private Collaboration

  • More iDEX-like platforms.
  • Incentivize private R&D through funding and priority contracts.

Procurement Reform

  • Digitize procurement cycle; prioritize “Buy Indian”.
  • Simplify DAP and ensure time-bound clearances.

Expand Export Channels

  • Explore Africa, Southeast Asia, LATAM.
  • Use defence diplomacy for market access.

Create Defence Innovation Zones

  • Tax breaks, infrastructure, R&D incentives for drone, EW, satellite tech hubs.

Enhance Cybersecurity

  • Operationalize National Defence Cyber Command (NDCC).
  • Include cyber warfare in training.

India’s defence preparedness is at a critical juncture. The response to external aggression must be backed by modernisation, indigenisation, efficient procurement, and strategic foresight.

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