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

During the North Tech Symposium in Prayagraj, Defence Minister Rajnath Singh highlighted the successful deployment of indigenous defence systems during “Operation Sindoor.” 

However, despite progress under the Atmanirbhar Bharat initiative, India continues to remain heavily dependent on foreign defence imports.

India’s Defence Import Dependence

• India continues to be one of the world’s largest importers of defence equipment.
• The country still relies on foreign nations for several critical defence technologies, including:
  • Jet engines
  • Advanced semiconductors
  • Missile guidance systems
  • Submarine propulsion systems
• Although some assembly and manufacturing now take place domestically, India still lacks complete technological self-reliance in core defence technologies.

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Challenges in Indigenous Defence Development

• Technological Bottlenecks: Many indigenous defence projects in India continue to face serious technological and operational challenges, including:
  • Project Delays due to slow development and testing processes.
  • Cost Overruns caused by repeated revisions and extended timelines.
  • Technological Limitations in critical areas such as jet engines, propulsion systems, and advanced electronics.
  • For Example:  The Kaveri Engine Project failed to achieve operational success despite decades of investment, research, and development efforts.
    • The project exposed India’s limitations in mastering advanced aero-engine technology.
• Low Investment in Defence R&D: India spends comparatively less on Defence Research and Development (R&D) than major powers such as: United States, China.
  • Impact: Limited long-term investment weakens:
    • Innovation capacity
    • Indigenous technological development
    • Self-reliance in critical defence technologies
• Brain Drain of Engineering Talent: India faces a significant challenge in retaining top engineering talent in the defence research sector. Graduates from premier institutions such as the Indian Institutes of Technology often prefer private-sector employment or overseas career opportunities instead of joining strategic organizations like the Defence Research and Development Organisation. This trend is primarily driven by:
  • Higher salaries in the private sector,
  • Better research infrastructure,
  • Greater innovation opportunities, and
  • Faster career growth prospects abroad.
• Bureaucratic Delays and Red Tapism: India’s defence procurement system is often affected by excessive centralization, slow file movement, frequent procedural delays, and allegations of corruption, which significantly hamper efficient decision-making.
  • As a result:
    • Procurement timelines increase considerably,
    • Modernization of the armed forces gets delayed, and
    • Overall defence preparedness suffers due to slow and inefficient administrative processes.
• Unrealistic Procurement Requirements: Armed forces sometimes frame highly ambitious Qualitative Requirements (QRs).Many specifications do not match existing market capabilities or domestic technological capacity.
  • Impact
    • Procurement processes become lengthy and complicated.
    • Repeated revisions increase:
      • Costs
      • Delays
      • Uncertainty in acquisitions
  • Indigenous manufacturers face difficulty in meeting unrealistic expectations.

Lessons from China

China’s Defence Strategy: China aggressively pursued defence indigenization since the 1960s by:

• Investing heavily in R&D
• Building domestic manufacturing ecosystems
• Encouraging technological innovation
• Developing long-term industrial capacity

Outcome

• China has emerged as a major exporter of advanced defence technologies.

Changing Nature of Warfare

Recent conflicts such as the Russia-Ukrainian War have demonstrated that low-cost drones can effectively neutralize expensive military platforms and advanced defence systems.

The conflict has highlighted that modern warfare is increasingly dependent on:

• Swarm drones
• Autonomous systems
• Electronic warfare
• Cyber warfare

This reflects the growing importance of technology-driven, cost-effective, and asymmetric warfare capabilities in contemporary military strategy.

Government Initiatives

• Strategic Partnership (SP) Model: The Strategic Partnership (SP) Model enables Indian private-sector companies to collaborate with foreign defence manufacturers in the production of critical defence platforms such as submarines, fighter aircraft, and other advanced military systems. 
  • The primary objective of the model is to promote technology transfer, indigenous manufacturing, capacity building, and long-term self-reliance in the defence sector under the vision of Atmanirbhar Bharat.
• FDI Liberalization in Defence: India has permitted up to 74% Foreign Direct Investment (FDI) in defence manufacturing through the automatic route to encourage greater participation of global defence companies in the Indian market. 
  • The policy aims to attract foreign investment, advanced technology, modern manufacturing practices, and global expertise, thereby strengthening India’s indigenous defence production capabilities and promoting self-reliance in the sector.
• Challenges Faced by the Private Sector: Private defence manufacturers face several constraints, including:
  • Delayed payments
  • Excessive documentation requirements
  • Lack of a level playing field
  • Preference towards Defence Public Sector Undertakings (DPSUs)

Way Forward

• Hybrid Model: India should consider a model similar to the US (Pentagon), where the government sets strategic priorities and provides funding, while private companies handle innovation and manufacturing.
• Strategic Buyer Role: The government should transition from being a manufacturer to a “Strategic Buyer,” ensuring fair competition between PSUs and private players to drive efficiency and quality.
• Increase Defence R&D Spending: India needs to significantly increase long-term investment in Defence Research and Development (R&D) to strengthen indigenous innovation, advanced technology development, and self-reliance in strategic sectors. 
  • Higher R&D spending will help accelerate the development of critical defence technologies and reduce dependence on foreign imports.
• Retain Top Engineering Talent: India must create better salaries, research incentives, and innovation-driven ecosystems to attract and retain highly skilled engineers in strategic sectors such as defence technology and advanced manufacturing. 
  • Strengthening career opportunities in indigenous defence research will help reduce brain drain and enhance national technological capabilities.
• Transform Government’s Role: The government should primarily function as a strategic buyer and policy facilitator rather than acting as a direct manufacturer in the defence sector. 
  • This approach would encourage greater private-sector participation, competition, efficiency, and innovation, while allowing the government to focus on regulation, procurement, and long-term strategic planning.

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Conclusion

• India’s long-term strategic autonomy depends on achieving genuine defence self-reliance. To emerge as a major defence power, India must strengthen indigenous R&D, reduce import dependence, encourage private-sector innovation, and build a globally competitive defence manufacturing ecosystem. 

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