A Decade of Transformative Defence Reforms in India

A Decade of Transformative Defence Reforms in India

#GS-3 #Science & Technology #Defence #Economy #Growth #Infrastructure #Current Events #National #Atmanirbhar Bharat #Defence Sector Reforms

Why in News

  • Over the last ten years, India has strengthened its military power through higher funding, strategic policy changes, modern technology, and international partnerships.
  • The nation is shifting away from relying heavily on foreign weapons to creating a self-sufficient domestic defence manufacturing system under **Atmanirbhar Bharat** and **Viksit Bharat 2047**.

Rising Defence Budgets

  • The government increased total defence expenditure from **₹2.53 lakh crore in FY 2013-14** to **₹7.85 lakh crore in FY 2026-27** to strengthen national security.
  • Capital outlay for buying new military hardware and building infrastructure grew from **₹94,587.95 crore in 2014-15** to **₹2.19 lakh crore in 2026-27**.

Strengthening Defence Capability through R&D

  • Spending on defence research and development grew by over **112%**, rising from **₹13,716.14 crore in 2014-15** to **₹29,100.25 crore in 2026-27**.
  • During **2022-23**, the government earmarked **25%** of the defence R&D budget specifically for private companies, startups, and educational institutions.
  • The Department of Defence invested **₹1,757 crore** in **2024** to support joint research projects with private industry partners.
  • **DRDO** opened advanced testing facilities across **24 labs** to private firms using simple guidelines and the **Defence Testing Portal**.

Innovations for Defence Excellence

  • The **iDEX** program drives domestic innovation in defence and aerospace by connecting startups, **MSMEs**, researchers, and academic institutions.
  • Through the **Defence Innovation Organisation (DIO)**, funding was approved for **iDEX** at **₹498.78 crore** for **2021-22 to 2025-26** and **ADITI** scheme at **₹750 crore** for **2023-24 to 2025-26**.
  • By **March 2026**, **iDEX** had partnered with **676 startups and innovators**, signing **551 contracts** for new technology designs.

Development cum Production Partner Model

  • **DRDO** created the **DcPP model** to partner with local manufacturers during both the design and production stages of defence technology.
  • A network of more than **2,200 companies** now supplies essential military components and equipment across India.
  • By **March 2026**, **134 companies** joined as production partners, signing **2,180 technology transfer agreements** and opening over **2,780 patents** for industry adoption.

Technology Development Fund

  • Executed by **DRDO**, the **Technology Development Fund (TDF)** helps startups and **MSMEs** build original military technology inside the country.
  • The fund offers grants up to **₹50 crore** per project, supported by an extra corpus of **₹500 crore** focused on high-tech advanced solutions.
  • By **June 2026**, **80 projects** valued at **₹334 crore** were under execution, including two technology payloads successfully launched aboard **PSLV** rockets.

DRDO Industry Academia Centres of Excellence

  • **DRDO** launched **15 DIA-CoE research centres** across top universities to combine academic knowledge with industrial manufacturing.
  • These research hubs target **82 specialized research areas** to build next-generation equipment for defence forces.
  • **Industry Interaction Groups (IIGs)** were formed inside laboratories to speed up technology transfers to private manufacturers.

Defence Acquisition Reforms for Self-Reliance

  • The **Defence Acquisition Council (DAC)** reformed buying procedures to favor items made inside India under **DAP 2020**.
  • Rules now mandate high levels of local content whenever military services order new hardware.
  • The **DAC** approved **Acceptance of Necessity (AoN)** for domestic defence systems worth over **₹6 lakh crore**.
  • Major deals include **97 Tejas Mk-1A** jets for **₹62,000 crore**, **156 LCH Prachand** helicopters for **₹62,700 crore**, and **26 Rafale Marine** aircraft.

Building Human Capability for Technological Self-Reliance

  • **DRDO** set up **five Young Scientists Laboratories (DYSLs)** in **2020** and planned a **sixth laboratory** for **2026** to empower young researchers.
  • The structure of **DRDO** was consolidated into **36 focused laboratories** to maximize work efficiency and technical specialization.
  • High-budget projects now assign technical experts on a flexible, project-specific basis to access special skills.
  • A dedicated training centre at **Pilkhuwa, Uttar Pradesh** delivers specialized courses in fire safety and firefighting technology.

Agnipath Scheme

  • Launched on **15th June 2022**, the **Agnipath Scheme** recruits young people as **Agniveers** for a **four-year term** to keep forces young and tech-ready.
  • Recruits get rigorous training, skill certificates, and educational options through **IGNOU** and **NIOS** to support their career after service.

Expansion of Defence Industrial Ecosystem

  • India signed **193 defence contracts** worth **₹2,09,050 crore in FY 2024-25** and deals worth **₹1.82 lakh crore in FY 2025-26**.
  • Total domestic defence production rose to **₹1,78,000 crore in 2025-26**, registering a **15.6%** annual growth rate and a **110%** jump since **FY 2020-21**.
  • Public sector units (**DPSUs**) accounted for **76%** of output in **2025-26**, while the private sector share grew to **24%**.
  • Driven by **Make in India**, annual defence exports expanded by over **5500%**, growing from **₹686 crore in 2013-14** to **₹38,424 crore in 2025-26**.
  • Indian defence goods are sold to **over 80 countries**, supported by a network of **145 certified exporting companies**.
  • The government set a target to reach **₹50,000 crore** in annual defence exports by **2029**.
  • The overall defence ecosystem now comprises **16 DPSUs**, nearly **500 licensed companies**, and about **17,000 MSMEs**.
  • In **October 2021**, the government replaced the **Ordnance Factory Board (OFB)** by reorganizing its **41 factories** into **seven new DPSUs**.
  • Industrial licences granted for defence production rose from **258 in 2015** to **834 by 2026**.
  • Defence Industrial Corridors in **Uttar Pradesh** and **Tamil Nadu** drew total investments of **₹42,057 crore** and **₹32,699 crore** respectively.

Key Defence Sector Reforms under Atmanirbhar Bharat

  • Industrial licence validity was extended in **2015** from **7 years** to **15 years**, and under the updated **Arms Act**, licences now remain valid for a company's lifetime.
  • The modernized **Defence Exim Portal** provides fast online approvals, real-time tracking, and verified registrations for exporters.
  • The Ministry created the **Srijan Defence Portal** in **2020** alongside **Positive Indigenisation Lists** in **2021** to ban foreign imports of selected military items.
  • The **Srijan DEEP** digital directory lists over **41,000 vendors** and **2.7 lakh products** to build strong domestic supply chains.
  • Direct foreign investment limits were raised in **2020** to **74%** through the automatic route and up to **100%** with government approval.
  • Total **FDI inflow** reached **₹6,670.59 crore** by **March 2026**, facilitating joint manufacturing partnerships with global defence firms.

Major Strategic and Global Defence Achievements

  • With the **United States**, India signed landmark pacts including **LEMOA (2016)**, **COMCASA (2018)**, and **BECA (2020)**, supported by recent initiatives like **iCET (2023)** and **TRUST (2025)**.
  • Defense cooperation with **Russia** remains strong through **S-400** delivery, **Su-30MKI** upgrades, joint **Exercise INDRA**, and localized repair services.
  • India signed a new **Security and Defence Partnership (2026)** with the **European Union** to collaborate on cyber security, space, and naval safety.
  • Partnership with **France** deepened through **26 Rafale-M** aircraft approvals, **Scorpene** submarines, and production deals under the **Horizon 2047** framework.
  • Military ties with **Japan** expanded via the **ACSA (2020)** logistics agreement and joint naval drills like **JIMEX 2025**.
  • Ties with the **UAE** developed into a formal alliance following the **Strategic Defence Partnership agreement (2026)**.
  • Cooperation with **Australia** under the **Comprehensive Strategic Partnership (2020)** enhanced maritime monitoring and joint drills.
  • At the **SCO** forum, India focused on anti-terrorism measures and stopping terror finance while maintaining strategic autonomy.
  • Engagement with **ASEAN** via **ADMM-Plus (2025)** and missile sales like **BrahMos** strengthened ties with **Vietnam**, the **Philippines**, and **Indonesia**.
  • Within the **QUAD**, India active participation in **Malabar exercises** and the **Quad-at-Sea Mission (2025)** reinforced Indo-Pacific security.
  • Under maritime visions **SAGAR (2015)** and **MAHASAGAR (2025)**, India serves as a key security provider across the **Indian Ocean Region**.

Conclusion

  • Over the past decade, India's defence domain moved away from heavy reliance on imports toward complete strategic self-reliance.
  • Strong budget allocations, technological innovation, and expanding global partnerships have created a resilient domestic defence ecosystem.
  • This structural progress brings India closer to its target of becoming a modern, self-reliant military power under **Viksit Bharat 2047**.