At FICCI’s “New Age Military Technologies” conference, the Indian Army has unveiled a comprehensive modernisation roadmap aimed at transforming its capabilities across multiple domains.

• Earlier, the Ministry of Defence (MoD) also decided to observe 2025 as the ‘Year of Reforms’ to transform the Armed Forces into a technologically-advanced combat-ready force capable of multi-domain integrated operations.

Key Highlights of Indian Army’s Modernisation Roadmap

About Defence Modernisation

• Refers: A continuous and strategic process aimed at upgrading a nation’s weapons, surveillance systems, and military technology.
• Guided by: Threat perception, Operational requirements & Technological advancements
• Cruciality: A strong defence infrastructure is crucial not only to deter aggression and ensure national sovereignty, but also to promote regional stability.

Need for Defence Modernisation

• Enhancing Combat Capabilities: Upgrade military platforms with state-of-the-art weapons, advanced sensors, and precision-guided munitions to boost combat readiness.
• Improving Operational Efficiency: Modernise logistics, communication, and command systems to enable rapid mobilisation, real-time decision-making, and efficient threat response.
• Integration & Joint Operations: Promote inter-service synergy between the Army, Navy, and Air Force through Integrated Theatre Commands, common doctrines, and network-centric warfare capabilities.
• Emergence of Hybrid Warfare: Modern threats are multi-dimensional and include:
  • Information Warfare: Gaining advantage by disrupting, stealing, or manipulating enemy information systems while securing one’s own.
  • Cyber Warfare: Attacking or defending critical digital infrastructure, such as military networks, satellites, and command systems.
  • Electronic Warfare: Using electromagnetic spectrum tools (like jamming) to disrupt enemy systems.
  • Weaponization of Space: Deployment of weapons in outer space capable of targeting satellites, ICBMs, or even ground assets.
• These require high-tech solutions, such as AI-based systems, quantum communication, anti-satellite (ASAT) capabilities, and space situational awareness tools.

India’s Initiatives for Modernisation of Armed Forces

• 10-Year Integrated Capability Development Plan (ICDP): To align future procurement with evolving threats.
  • Prioritise capability building across space, cyber, and special operations domains.
• Actively integrating Niche Military Structures: For the Defence Space Agency, Defence Cyber Agency, and Armed Forces Special Operations Division (AFSOD) for domain-specific warfare readiness.
  • Promote jointness and interoperability among the services.
  • Defence Space Agency – Strengthening military space-based operations.
  • Defence Cyber Agency – Building cyber warfare and cyber defence capacities.
  • Armed Forces Special Operations Division (AFSOD) – Focused on rapid response, cross-service special operations.
• Boost Indigenous Manufacturing: By expanding the Positive Indigenisation List and leverage the SRIJAN portal to replace imports with domestic alternatives.
  • Positive Indigenisation Lists: Bans import of 400+ items to promote domestic production.
• Innovation through Innovations for Defence Excellence (iDEX): Scaling up iDEX to fund more startups and MSMEs working on critical defence technologies.
  • Encourage Make-I and Make-II projects for co-development and co-production.
  • Funding of up to ₹1.5 crore for promising tech innovations.
  • Drives collaboration between military users and innovators.
• Modernise Soldier Systems: Equipping troops with exoskeletons, AI-powered helmets, AR-based command systems, and smart body armour.
  • Ensure real-time health monitoring and integrated battlefield awareness.
• Digitise Defence Logistics: Integrating AI, blockchain, and IoT into logistics and supply chains to create green, cyber-resilient, and efficient systems.
  • Use predictive analytics for maintenance and operational readiness.
• Integrated Theatre Commands (ITCs): A proposed structure for unified control of the Army, Navy, and Air Force under a single commander in a specific geographic area.
  • It aims to enhance operational efficiency by enabling seamless inter-service coordination and optimal use of combined resources.

Challenges to Defence Modernisation

• Financial Constraints and Procurement Bottlenecks: Despite a ₹6.81 lakh crore defence budget (FY 2025–26), only 26.4% is earmarked for new acquisitions, while over 50% goes to revenue expenditure (salaries & pensions).
  • Underutilisation of Capital Funds: Frequent underspending of capital allocations points to execution inefficiencies in procurement planning.
  • Slow Procurement and Red Tape: Despite DAP-2020 reforms, bureaucratic delays and long approval cycles persist—impacting critical projects like Tejas LCA and Project 75(I) submarines.
  • Overdependence on Imports: India remains the top arms importer (2019–2023), relying on foreign tech (e.g., jet engines for Tejas, S-400 systems), risking supply chain disruptions.
• Technological Gaps and Indigenisation Hurdles: Despite progress, India still lags in AI, quantum, and sensor tech, with some estimates suggesting a 30-year gap in certain defence capabilities.
  • Production Constraints: Domestic production rose to ₹1.27 lakh crore in FY 2023–24, but critical component manufacturing like fighter jet engines remains weak.
  • Cyber and Electronic Warfare (EW) Vulnerabilities: With increasing networked operations, defence infrastructure is exposed to cyber threats. EW and cyber resilience needs further strengthening.
  • Low R&D Spending: DRDO received only ₹26,816 crore (3.94% of defence budget), while India’s total R&D spend is just 0.8% of GDP, much below global standards.
  • Limited Tech Absorption from Foreign Deals: Licensing issues, IPR limitations, and incomplete tech transfer restrict the benefits of global partnerships.
• Structural and Organisational Challenges: Though private players contributed 21% to defence output in FY 2023–24, Defence Public Sector Undertakings (DPSUs) still dominate, limiting innovation and competition.
• • Delays in Theatre Command Integration: Despite 2025 being declared the ‘Year of Reforms’, full implementation of Integrated Theatre Commands remains incomplete.
  • Skill Gaps in Human Capital: Lack of specialised personnel in AI, cyber, drone tech, and engineering. Concerns over Agniveer’s impact on long-term skill retention.
  • Geopolitical Uncertainty: China’s build-up along the LAC, and shifting global alliances, demand adaptive, tech-savvy, and agile force structures.

Way Forward for Defence Modernisation

• Optimise Budgeting and Procurement: Effectively utilise the ₹1.12 lakh crore earmarked for domestic capital procurement in FY 2025–26.
  • Digitise and Simplify DAP: Further reform the Defence Acquisition Procedure by introducing real-time digital tracking, reducing file movement time, and prioritising ‘Buy Indian’ categories.
  • Link Modernisation to Long-Term Plans: Align annual budgets with the 10-Year Integrated Capability Development Plan (ICDP) for funding continuity.
• Accelerate Indigenous R&D and Innovation: Focus on hypersonics, DEWs, AI, autonomous systems, and quantum tech. Expand schemes like ADITI (Acing Development of Innovative Technologies).
  • Expand iDEX & TDF Outreach: Leverage iDEX, which already has 619 startups onboard and 430+ contracts. Create more innovation hubs and ease funding access.
  • Strengthen Defence Corridors & Indigenisation: Use the UP and TN Defence Corridors (₹8,658 crore+ investments) to increase indigenous capacity. Continue expanding the Positive Indigenisation List (5,500+ items).
  • Promote Defence Exports: Sustain the growth from ₹21,083 crore (FY 2023–24) towards the ₹50,000 crore goal by 2029. Export successes include BrahMos, Aakash, Pinaka, and private UAV systems.
  • Focus on Critical Component Indigenisation: Prioritise jet engines, semiconductors, and avionics to reduce foreign dependency and ensure strategic autonomy.
• Strengthen Integration and Human Capital: Expedite formation of Integrated Theatre Commands, integrating tri-services and even Central Armed Police Forces (CAPFs) for efficient joint operations.
  • Build a Skilled Defence Workforce: Create specialised institutes in defence tech in partnership with global Original Equipment Manufacturers (OEMs) and top academic institutions. Expand reskilling under Agnipath and beyond.
  • Enhance Cyber and EW Capabilities: Develop indigenous EW suites, autonomous cyber tools, and a possible National Defence Cyber Command (NDCC).
    • Recent systems like SANJAY (real-time battlefield surveillance system) mark progress.
  • Deepen Strategic Tech Partnerships: Focus on co-development agreements with full tech transfer, especially in missile systems, aerospace, and AI platforms.
• Implementation and Strategic Reforms: Fully adopt the Raksha Mantri Committee Report (2022) to resolve issues related to jointness, grievance redressal, litigation, and modernisation delays.
• • Modernise Training Infrastructure: Integrate AI, VR, and robotics into training modules. Use simulation-based tools to reflect future warfare scenarios.
  • Adapt to Hybrid & Multi-Domain Threats: Balance investment between high-cost strategic systems and low-cost AI/robotic swarm solutions to counter hybrid threats.

Conclusion

India’s defence modernisation drive is ambitious and multifaceted, but must overcome structural, financial, and technological hurdles. A whole-of-government approach, with strong synergy between the military, industry, and policymakers, is vital to build a future-ready, self-reliant defence ecosystem capable of responding to emerging global threats.

DOWNLOAD PDF