[Answered] Examine the bottlenecks in ‘Make in India’ for defence in light of global conflicts. Evaluate the private sector’s role in achieving self-reliance.

Introduction

For India, the world’s highest importer of arms, Atmanirbharta (Self-reliance) in defence under the Make in India banner is no longer an economic choice, but a strategic necessity. While defence exports reached an all-time high of over ₹23,600 crore in FY25, critical structural dependencies remain.

Global Conflicts and Lessons for India’s Defence Ecosystem

Supply-Chain Vulnerability in Modern Warfare

1. Russia-Ukraine conflict exposed dependence on imported spares, ammunition and semiconductors during prolonged wars. Example: Russian sanctions shock.
2. Export controls and geopolitical disruptions can halt critical upgrades overnight. Example: US chip restrictions.
3. Dependence on foreign OEM software ecosystems creates operational vulnerability. Example: Fighter aircraft maintenance.

Shift Towards Technology-Intensive Warfare

1. Contemporary conflicts increasingly rely on drones, cyberwarfare, AI-enabled targeting and electronic warfare instead of only expensive conventional platforms. Example: Iran UAV strikes.
2. India’s procurement model still favors long-cycle acquisitions over rapid innovation. Example: Delayed MRFA project.
3. Defence preparedness now requires software adaptability and indigenous component ecosystems. Example: Battlefield AI systems.

Strategic and Geopolitical Imperatives

1. Self-reliance has become central to strategic autonomy under India’s Indo-Pacific doctrine. Example: QUAD security concerns.
2. China’s defence-industrial rise demonstrates benefits of indigenous manufacturing depth. Example: PLA modernization.
3. Global fragmentation strengthens the need for diversified domestic production networks. Example: Europe ammunition shortages.

Structural Bottlenecks in Make in India

Institutional and Procurement Challenges

1. Over-centralised procurement and ambiguous Qualitative Requirements (QRs) delay acquisitions by years. Example: Parliamentary Standing Committee findings.
2. Multiple approval layers weaken timely decision-making and technological responsiveness. Example: Defence Acquisition Procedure delays.
3. DPSU (Defence-Public-Sector-Undertakings) dominance often discourages competitive private participation. Example: Nomination-based contracts.

Technological and R&D Constraints

1. India spends less than 1% of GDP on defence R&D, limiting innovation ecosystems. Example: Aero-engine dependency.
2. Weak academia-industry-DRDO collaboration slows commercialisation of prototypes. Example: Kaveri engine project.
3. Import dependence persists in critical materials and electronics. Example: Semiconductor imports.

Financial and Structural Bottlenecks

1. Revenue expenditure on salaries and pensions crowds out capital modernisation. Example: Defence budget composition.
2. Private firms face delayed payments, testing barriers and limited procurement assurances. Example: MSME vendor distress.
3. Lack of integrated component clusters reduces manufacturing depth. Example: Aerospace alloys dependence.

Evaluating the Private Sector’s Role in Self-Reliance

Engine of Innovation and Efficiency

1. Private firms contribute over 60% of defence exports through cost-efficient production. Example: Bharat Forge artillery.
2. Start-ups under iDEX and ADITI are advancing drone swarms, AI and quantum technologies. Example: New-age defence startups.
3. Agile production systems enable faster adaptation to evolving warfare needs. Example: Loitering munitions.

Technology Partnerships and Manufacturing Expansion

1. Liberalised 74% FDI norms encourage joint ventures and technology transfer. Example: Tata-Airbus C-295.
2. Private participation strengthens India’s integration into global defence supply chains. Example: Boeing-Tata collaboration.
3. MSMEs deepen ancillary ecosystems and employment generation. Example: Tamil Nadu defence corridor.

Strategic and Economic Significance

1. Indigenous defence manufacturing reduces forex outflow and import vulnerability. Example: Atmanirbhar Bharat initiative.
2. Defence exports enhance geopolitical influence and strategic partnerships. Example: BrahMos exports.
3. Competitive private participation aligns with constitutional goals of economic efficiency and innovation-driven growth under Article 39(c). Example: Industrial competitiveness.

Way Forward

1. Provide 10-15 year long-term procurement visibility for private investment.
2. Expand positive indigenisation lists for subsystems and components.
3. Ensure genuine level playing field by separating policy and buyer roles.
4. Strengthen DRDO-private-academia consortia for rapid commercialisation.
5. Focus on R&D incentives and testing infrastructure access for MSMEs.

Conclusion

The nation that swiftly adapts to the technological revolution holds the decisive edge. India’s decisive edge cannot be imported, it must be designed, built, and sustained at home. The private sector is ready; the procurement architecture must match its ambition.