India’s Defence Sector – Atmanirbhar Bharat, Defence Imports & Indigenous Challenges

Indigenous Success and Persistent Dependence

At the North Tech Symposium in Prayagraj, Defence Minister Rajnath Singh highlighted the successful deployment of indigenous systems during Operation Sindoor. Yet, despite progress under the Atmanirbhar Bharat initiative, India remains one of the world’s largest defence importers. Critical technologies—jet engines, missile guidance systems, submarine propulsion, and advanced semiconductors—still come from abroad. Domestic assembly has grown, but true technological self-reliance remains elusive.

Challenges in Indigenous Defence Development

India’s defence sector faces multiple structural hurdles:

• Technological Bottlenecks: Projects suffer delays, cost overruns, and limitations in advanced systems. The Kaveri Engine Project exemplifies India’s struggle to master aero-engine technology.

• Low R&D Investment: Compared to the U.S. and China, India spends far less on defence research, weakening innovation and long-term capacity.

• Brain Drain: Top engineering talent often opts for private or overseas careers, citing better pay, infrastructure, and opportunities.

• Bureaucratic Delays: Centralized procurement, red tape, and corruption slow modernization.

• Unrealistic Requirements: Ambitious specifications often exceed domestic capabilities, complicating procurement and discouraging indigenous manufacturers.

Lessons from China

China’s defence transformation since the 1960s shows the power of sustained investment in R&D, industrial ecosystems, and innovation. Today, it is a major exporter of advanced defence technologies—an outcome India has yet to replicate.

Changing Nature of Warfare

The Russia–Ukraine war has demonstrated the disruptive role of low-cost drones, autonomous systems, cyber warfare, and electronic warfare. Modern conflicts highlight the need for technology-driven, asymmetric capabilities rather than reliance solely on expensive platforms.

Government Initiatives

• Strategic Partnership (SP) Model: Encourages collaboration between Indian private firms and foreign manufacturers, promoting technology transfer and indigenous production.

• FDI Liberalization: Up to 74% FDI allowed in defence manufacturing via the automatic route, aimed at attracting global expertise and strengthening domestic capacity.

• Private Sector Challenges: Despite reforms, private firms face delayed payments, excessive documentation, and bias toward Defence Public Sector Undertakings (DPSUs).

Way Forward

To achieve genuine self-reliance, India must:

• Adopt a Hybrid Model – Government sets strategic priorities, while private firms drive innovation and manufacturing.

• Act as a Strategic Buyer – Ensure fair competition between PSUs and private players.

• Boost Defence R&D Spending – Invest significantly in indigenous innovation and advanced technology.

• Retain Engineering Talent – Offer competitive salaries, research incentives, and innovation ecosystems to reduce brain drain.

• Transform Government’s Role – Focus on regulation, procurement, and strategic planning rather than direct manufacturing.

Conclusion

India’s long-term strategic autonomy hinges on genuine defence indigenization. Progress under Atmanirbhar Bharat is encouraging, but dependence on imports persists. By strengthening R&D, empowering private industry, eliminating bureaucratic hurdles, and fostering innovation, India can build a globally competitive defence ecosystem. Only then can the nation transition from being a major importer to a true defence power.