Committee Pursuing Reduced Dependence on International Vendors in Defense Sector
India Pushes for Self-Reliance in Defence Sector
A Parliamentary Standing Committee on Defence has submitted a report to Parliament, highlighting the need for India to reduce its reliance on foreign Original Equipment Manufacturers (OEMs) and strengthen its domestic production capabilities. The committee's report comes in response to delays in delivering crucial equipment and weapon systems to the armed forces, which have been linked to dependencies on foreign OEMs.
The delays in delivering Tejas Mark 1A fighter jets to the Indian Air Force have been reported in the news, with the cause traced back to a US firm's delay in supplying engines. However, the committee did not discuss any specific delays in this regard in its report.
The committee expressed concern over time overruns by some Defence Public Sector Undertakings (DPSUs) caused by dependencies on foreign OEMs. Interestingly, in this paragraph, the committee did not voice any concern over time overruns by some DPSUs.
To address these issues, the committee has recommended that India gradually increase its domestic production capabilities to reduce reliance on foreign suppliers. The objective of the strengthened research and development is to accelerate the development of advanced defence technology and achieve greater self-sufficiency.
The committee urged DPSUs to intensify efforts to ensure timely supplies of modern platforms to India's armed forces. The panel called on the Ministry of Defence to develop domestic production capabilities incrementally, aiming to reduce reliance on foreign OEMs to "strategically acceptable levels."
India aims to achieve this goal through several key steps. The government has allocated over 70% of the defense procurement budget to Indian-made equipment, showing a strong preference for domestic sources. There is a significant increase in capital expenditure dedicated to R&D and infrastructure to support local manufacturing.
Initiatives like iDEX (Innovations for Defence Excellence) support startups and MSMEs by funding research and development focused on defence technologies. This has enabled indigenous production of advanced equipment such as mini drones, loitering munitions, and directed energy weapons.
The Indian Army’s modernization roadmap includes development of hypersonic weapons, cyber and electronic warfare capabilities, precision-guided munitions, and advanced soldier systems incorporating AI and augmented reality to boost battlefield performance.
Private companies contribute significantly to defense exports, which reached USD 2.8 billion in FY 2024-25, and the private sector’s role in exports is growing rapidly. India is reducing dependency on traditional suppliers such as Russia, from 72% of arms imports a decade ago to about 36% today, and increasing collaboration with other countries while boosting self-sufficiency.
The defense budget has grown by about 9.5%, reaching ₹6.81 lakh crore (~$81 billion), underscoring the commitment to boosting domestic production capacity. Large deals such as $7.3 billion for locally made Prachand light combat helicopters exemplify the shift towards homegrown platforms.
The committee's report also recommended strengthening research and development efforts within DPSUs through enhanced funding, upgraded infrastructure, and improved human resource support. This is a response to the delays in delivering Tejas Mark 1A fighter jets to the Indian Air Force, although the committee did not mention any delays caused by a US firm's delay in supplying engines in this paragraph.
In summary, India combines increased budgetary support, supportive policies, fostering innovation, private sector engagement, and targeted modernization programs to progressively build a self-reliant defense manufacturing ecosystem and reduce reliance on foreign suppliers. This mirrors a broader strategic goal to enhance military readiness while developing an export-oriented defense industrial base. The committee's report did not discuss any relations or interactions with the UK in this regard. The committee emphasized that the approach of self-reliance and strategic autonomy, despite contributing to some delays, is necessary for India's long-term defence interests.
Technology plays a crucial role in India's quest for self-reliance in the defense sector. The Indian government is focusing on advanced defense technology to accelerate development and achieve greater self-sufficiency, such as hypersonic weapons, cyber and electronic warfare capabilities, precision-guided munitions, and advanced soldier systems incorporating AI and augmented reality.
The committee's report also recommended strengthening research and development within Defence Public Sector Undertakings (DPSUs) through enhanced funding, upgraded infrastructure, and improved human resource support. The emphasis on technology and R&D is a strategic move to reduce reliance on foreign Original Equipment Manufacturers (OEMs) and develop a self-reliant defense manufacturing ecosystem.
