Forest Services
India’s Defence Modernisation Drive: Critical Analysis
India's defence modernisation initiatives represent a strategic application of the “self-reliance vs strategic dependence” framework. While the push for Atmanirbhar Bharat in defence aligns with geopolitical necessities, gaps in manufacturing capacity, defence R&D, and procurement systems limit its effectiveness. Defence policy must transition from slogan-driven imperatives to measurable, institutionally grounded outcomes. This analysis critiques the current trajectory while assessing global comparisons and sectoral priorities.
UPSC Relevance Snapshot
- GS Paper III: Defence Technology, Security Challenges
- GS Paper II: International Relations – Strategic Autonomy
- Essay Angle: "Balancing Security Initiatives with Development Goals"
Institutional Landscape of Defence Modernisation
Key Institutions and Policies
The institutional underpinnings of India’s defence modernisation consist of the Defence Acquisition Procedure (DAP), the Strategic Partnership (SP) model, and initiatives under Make in India. Key agencies include the Ministry of Defence, Defence Research and Development Organisation (DRDO), and the indigenous defence manufacturing ecosystem. Despite several policy frameworks, operational bottlenecks persist.
- Defence Acquisition Procedure (DAP), 2020: Designed to streamline purchases and promote indigenisation.
- DRDO: Focused on high-end research but criticised for delays in key defence projects (e.g., Tejas fighter jet).
- Defence Public Sector Undertakings (DPSUs): Central to production but plagued by inefficiencies.
- Make in India for Defence: Policy facilitates private sector involvement; limited results achieved after eight years.
Evidence and Challenges in Modernisation
The Argument with Evidence
While the Ministry of Defence claims significant gains in indigenisation, authoritative data paints a mixed picture. For instance, SIPRI’s 2025 report shows India remains the world's largest importer of defence equipment, accounting for 11% of global arms imports. Domestic production has improved—spending on indigenous R&D tripled between FY 2020 and FY 2026—but operational deficiencies remain acute.
- SIPRI Data, 2025: India imported 11% of global arms; USA and Russia were major suppliers.
- Defence Budget 2025: Only 19% spent on capital acquisitions. Majority absorbed by salaries and pensions.
- Make in India Outcomes: 209 contracts for indigenous production signed from 2016-2026, but average delays remain high (CAG report).
- DRDO Innovations: Progress in missile technology (e.g., BrahMos 2) contrasts with slower developments in heavy weaponry.
Counter-Narrative: The Reform Costs
The strongest counter-argument is financial and operational feasibility. Critics argue ambitious indigenisation goals under “Atmanirbhar Bharat” lack the robust ecosystems required for scaling production. A RAND Corporation report from 2025 highlights India's structural deficits, including outdated infrastructure and low defence R&D investment at 0.6% of GDP (compared to China's 2.2%). While strategic autonomy is desirable, over-reliance on domestic projects risks compromising readiness.
Global Comparisons and Strategic Assessment
International Comparison: India vs France
France provides a compelling comparison for defence modernisation due to its blend of domestic production and focused imports. India can adapt lessons from France’s defence industrial base, particularly in integrating private firms and leveraging joint ventures.
| Metric | India | France |
|---|---|---|
| Defence R&D as % GDP | 0.6% (SIPRI 2025) | 2.2% (OECD 2025) |
| Indigenous Production Share | 37% (CAG 2026) | 78% (French Ministry of Defence, 2025) |
| Private Sector Involvement | Limited: Private share <12% | Extensive: Private sector contributes 40% |
| Export Potential | Minimal (Ranked 26th globally) | High (Ranked 3rd globally) |
Structured Assessment
- Policy Design Adequacy: DAP 2020 provides basic framework but lacks enforceable timelines for project completions.
- Governance Capacity: Institutional overlaps (e.g., DRDO vs DPSUs) weaken execution. Reform is overdue.
- Behavioural/Structural Factors: Legacy challenges include limited tech transfer agreements and workforce skill gaps.
Exam Integration and Frequently Asked Questions
Frequently Asked Questions
What are the key challenges faced by India's defence modernisation initiatives?
India's defence modernisation faces significant challenges including gaps in manufacturing capacity, lack of effective research and development, and inefficiencies within procurement systems. These operational bottlenecks hinder the effectiveness of the Atmanirbhar Bharat initiative, aiming for self-reliance in defence.
How does India's defence R&D expenditure compare with that of China?
India's defence R&D expenditure is currently at 0.6% of its GDP, significantly lower than China's 2.2%. This disparity highlights structural deficits in India's defence ecosystem and underscores the need for increased investment to bolster capabilities.
What role do Defence Public Sector Undertakings (DPSUs) play in India's defence sector?
DPSUs are central to India's defence production efforts, but they face challenges such as inefficiencies and inadequate processes that affect their operational capabilities. Their performance is critical for achieving the goals set under the Make in India policy, which seeks to enhance indigenous production.
In what ways can India learn from France's defence modernisation strategy?
India can take cues from France's successful integration of private firms in their defence industrial base, which enhances indigenous production. Additionally, France's focus on structured imports, alongside domestic manufacturing, can provide a balanced framework for India's own defence procurement strategies.
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