To commemorate the 77th Army Day, for the first time, Pune will host the Army Day on January 15, marking two years of shift from the traditional venue of Delhi. This move underscores the Army’s commitment to connect with regions steeped in military heritage and fostering greater public engagement across the country.
Army Day 2023 and 2024 were celebrated in Bengaluru and Lucknow respectively, while Pune will be the third venue outside Delhi for the Army Day, this year. Prior to Army Day celebrations, the Indian Army also hosted ‘Know Your Army’ Melas in Pune and Bengaluru aimed at showcasing the strength, technological advancements and indigenous capabilities of the Indian Army and the defence ecosystem.
The Army Day offers us an opportunity to take stock of the Indian defence sector on its path to establish a Aatmanirbhar Bharat. SWOT analysis is an instrument which is used most by the military worldwide to gauge its own and its enemy’s preparedness. It is not a criticism but an exercise to identify areas which need to further enhance their performance and capabilities.
Though India has undoubtedly emerged as a regional military power, yet it is not classified as a “military superpower” like the US, Russia, and China. Indian aspirations to become one, calls for adopting a multifaceted approach. Perhaps, this was the reason why Prime Minister Modi launched the Aatmanirbhar Bharat Abhiyan and “Make in India” campaigns to enthuse and propel the Indian defence manufacturing sector to scale new heights.
Aatmanirbhar Abhiyan involved both the civil and defence sectors. For the defence sector it meant modernising the Indian Armed Forces, through self-development and new alliances and integrating newer emerging concepts like Quantum Computing and Artificial Intelligence, while maintaining the country’s nuclear deterrence and using diplomacy to further its aspirations for the defence sector.
Though India has undoubtedly emerged as a regional military power, but it is not yet classified as a “military superpower” like the US, Russia, and China. India’s aspiration to become one calls for adopting a multifaceted approach. Perhaps, this was the reason why Prime Minister Modi launched the Aatmanirbhar Bharat Abhiyan
Though India’s defence outlay is just below 2 per cent of the country’s GDP (as per this year’s budget), it is still ranked as the world’s fourth-largest military spender – behind the US, China, and Russia. The defence budget for 2024-25 stood at Rs 6.21 lakh crore, marking a 4.72 per cent increase from the previous year, with a substantial focus on capital expenditure to modernise defence capabilities and big-ticket acquisitions. Almost a third of the budget – Rs 1.72 lakh crore – is earmarked for modernisation. Estimates suggest that the Indian armed forces will spend $130 billion (Rs 10.89 lakh crore) on capital procurement over the next five-six years.
Along with Indian Armed Force’s modernisation, investing in research and development through institutions like the Defence Research and Development Organisation (DRDO) – in collaboration with the private sector wherever feasible – is also critical for accelerated development of cutting-edge solutions.
Aatmanirbharta in Defence
There has been a marked improvement in India’s domestic defence production in the past decade. In 2024, it was valued at Rs 1.27 lakh crore, a record high and a 16.7 per cent increase over the previous year. It was, in fact, the second year in a row that India’s defence production surpassed Rs 100,000 crore.
Private sector companies contributed 21 per cent of the total or Rs 26,506 crore. As per defence ministry data, more than 14,000 MSMEs and close to 350 start-ups are engaged in defence production in India. The government has set an annual defence production target of Rs 300,000 crore by 2029, which would be an over three-fold jump from the current levels.
To help defence production, the government liberalised the defence foreign direct investment (FDI) regime by enhancing the earlier foreign equity cap from a maximum of 26 per cent under the automatic route. The FDI liberalisation has led to an inflow of Rs 5,700 crore till 2024.
Along with Indian Armed Force’s modernisation, investing in research and development through institutions like the DRDO – in collaboration with the private sector wherever feasible – is also critical for accelerated development of cutting-edge solutions
The Ministry of Defence (MoD), buoyed by the domestic industry’s growing capability, is increasingly awarding complex projects to the industry, both private and public. In 2023, the MoD signed contracts with the domestic industry for medium power radars and an integrated electronic warfare system (Bharat Electronics), HTT-40 basic trainer aircraft and Dornier-228 aircraft (Hindustan Aeronautics Limited), cadre training ships (L&T), improved Akash Weapon System (Bharat Dynamics Limited), Offshore Patrol Vessels and Missile Vessels (Goa Shipyard Limited and Garden Reach Shipbuilders and Engineers), Fleet Support Vessels (Hindustan Shipyard Limited) and upgraded super rapid gun mount (Bharat Heavy Electrical Limited).
India has also steadily indigenised its military capabilities – warships like the frigate INS Sahyadri and the aircraft carrier INS Vikrant and the LCA Tejas fighter jet are testimony to that. India has also started exporting military equipment, like selling BrahMos missiles to the Philippines.
In terms of structural changes, MoD appointed a Chief of Defence Staff (CDS) in 2020 to head the newly created Department of Military Affairs (DMA) to enhance jointness, integration and theaterisation within the Indian military so that the three services utilise their resources in an integrated manner.
However, India must also establish its theatre commands soon. The creation of military theatre commands and the expansion of our maritime footprint across “strategic locations” in the Indian Ocean Region (IOR) will help further to improve our overall defence capabilities.
To be counted as a military superpower one, India must strengthen its maritime capabilities to secure its interests and project power in the Indian Ocean and beyond, as nations projects power through their neighbouring seas and oceans.
Buoyed by the domestic industry’s growing capability, the MoD is increasingly awarding complex projects to the industry, both private and public. In 2023, the MoD signed contracts with the domestic industry for different verticals
This requires a blue-water navy – comprising modern ships, submarines, and aircraft carriers – capable of extended naval operations while safeguarding international trade routes. The IOR’s importance in global trade and geopolitical competition is growing, with its vital maritime trade routes serving as “strategic highways” connecting Asia to Europe and the Americas.
Additionally, Space is now a vital extension of the air security too. To that end, the new doctrine of the IAF focuses on effective exploitation of the “air and space continuum” and talks about a “Space Vision 2047”.
To move from being a “potent air power” to a “credible aerospace power”, the IAF plans to deepen its intelligence, surveillance and communication capabilities through the use of space technology. With help from DRDO, ISRO and others, it now plans to develop niche technologies like military satellites to meet India’s security objectives, including safeguarding its space-based assets.
Meanwhile, India urgently needs to develop strategies that would help it overcome the numerical and technological gap – in effectiveness and cost. While developing fifth and sixth-generation aircraft remains an essential way forward, an Anti-Access/Area Denial (A2/AD) strategy offers a pragmatic countermeasure, and could prevent adversaries from controlling airspace. China’s second fifth-generation and sixth generation stealth aircrafts, pose a significant challenge for India.
With the increased adoption of latest technologies, cyber capabilities are also becoming increasingly important in modern warfare. Developing a robust cyber defence mechanism and offensive capabilities will help it to protect against cyber threats and build resilience.
India must also establish its theatre commands soon. The creation of military theatre commands and the expansion of our maritime footprint across “strategic locations” in the Indian Ocean Region (IOR) will improve our overall defence capabilities and preparedness
Economic and industrial support ensures sustained military modernisation. A substantial defence budget, coupled with a strong industrial base, would support continuous innovation and production of advanced military hardware in India. This is imperative to counter the burgeoning military capability of India’s main adversary, China. Keeping an aggressive China at bay is India’s biggest defence challenge as it marches on in its quest to be among the big boys of the global security.
It might not be wrong to say that the Indian Armed Forces’ shift towards technology absorption during the last four years raises both expectations and delivery. However, to ensure delivery across the spectrum, it would be pertinent to integrate emerging areas like space force and advanced tools like drones and cybersecurity reflecting a proactive response to the evolving challenges.
Further, to ensure that the Indian Armed Forces are well-situated on the path of becoming a regional military power, while ensuring peace and tranquillity in the Indo-Pacific, requires giving more arms and ammunitions to the three service, or in other words a significant incremental increase in country’s budget, so that shortfall in IAF squadron strength could be taken care of, besides the requirements of the other two services.
In fact, learning from the positive results delivered by the private sector, doors should be opened more for a much larger participation of the private sector in country’s defence manufacturing. In addition, it would be a real gamechanger if India could embark on a collaborative programme involving like-minded and friendly nations with major Indian defence manufacturers to fulfil its requirements. A case in the point is the submarine manufacturing, LCA Mk 2 fighter, AMCA, TEBDF or even the ambitious leap towards the 6th Gen fighters.
To move from being a “potent air power” to a “credible aerospace power”, the IAF plans to deepen its intelligence, surveillance and communication capabilities through the use of space technology. With help from DRDO, ISRO and others, it now plans to develop niche technologies like military satellites to meet India’s security objectives
Some major challenges in achieving Aatmanirbharta in defence sector are; Technological Gap: Developed nations possess a considerable lead in high-end technologies like advanced aircraft, stealth materials, and next-generation weaponry. Bridging this gap requires substantial R&D investment and nurturing a robust domestic innovation ecosystem. Moreover, India’s defence procurement process is notorious for its slow and bureaucratic nature. Delays in defence projects impact production timelines and budgets besides forcing the setting the country’s defence forces to operate with old or even obsolete hardware.
To overcome this, nurturing a strong domestic defence industry is required, which hinges on a well-developed ecosystem of suppliers, manufacturers, and skilled workers. Encouraging private sector participation, fostering innovation among startups (like iDEX), and building a skilled workforce are crucial steps in this regard.
It seems that the country’s defence establishment has realised its shortcomings, too. At the 21st Subroto Mukerjee Seminar, themed “Atmanirbharta in Aerospace: Way Ahead”, held in New Delhi on January 7, the Defence Secretary Rajesh Kumar Singh described India’s defence procurement system as “broken” and plagued by delays. According to Mr Singh, India’s defence procurement policy, criticised for delays and inefficiencies, will be reformed within six months to a year. His remarks follow the Ministry of Defence’s (MoD’s) decision to observe 2025 as the “Year of Reforms” and its December announcement that the Defence Acquisition Procedure (DAP) 2020 is “likely to undergo a complete revamp” in 2025.
To ensure that the Indian Armed Forces are well-situated on the path of becoming a regional military power, ensuring peace and tranquillity in the Indo-Pacific, requires giving more arms and ammunitions to the three service, or in other words a significant incremental increase in country’s defence budget
Singh described the policy as “broken” and acknowledged that the system had often failed to meet timelines, stressing the need to “call a spade a spade” and adopt a different approach. He said reforms would focus on streamlining timelines and fixing the procurement process to address long-standing issues.
Singh also noted that requirements were often “gold-plated” – suggesting they included overly ambitious or rigid specifications – while evaluation processes remained lengthy. “It’s time to call a spade a spade. We have to move on to a different approach,” he said. “The procurement side, we will tackle over the course of the next six months to one year, both in terms of the process timelines and in terms of the procedures themselves,” he concluded. It is indeed a welcome move and will definitely help the Indian defence sector to move ahead with all guns blazing to achieve the targets of its Aatmanirbhar Bharat Abhiyan.
Further, developing indigenous defence equipment can be expensive, especially during the initial stages. India needs to find a balance between affordability and technological advancement. In some cases, importing certain equipment in the short term might be cheaper.
Some major challenges in achieving Aatmanirbharta in defence sector are; Technological Gap: Developed nations possess a considerable lead in high-end technologies like advanced aircraft, stealth materials, and next-generation weaponry. Bridging this gap requires substantial R&D investment and nurturing a robust domestic innovation ecosystem
To achieve this our defence planners and strategists may have to take a backseat, handing over the reins to field specialists to fast forward the fulfilment of the Indian Armed Forces’ requirements in the shortest possible time or by focused utilisation of innovative concepts like embarking on multiple aircraft engine programme and modular aircraft design to ensure swift upgradation both through indigenous and collaborative efforts.
To remain a cohesive and punch-up force in the region, the Indian Armed Forces will have to gear up for simultaneous sprint and marathon runs and be well equipped and ready for present and future battles.
-The writer is a New Delhi-based senior commentator on international and strategic affairs, environmental issues, an interfaith practitioner, and a media consultant. The views expressed are personal and do not necessarily carry the views of Raksha Anirveda
