India's Defence drive powers economic growth

The recent hostilities between India and Pakistan have once again highlighted a stark truth: warfare, regardless of its scale or region, exacts a significant economic cost.

- SANTOSH SHARMA

This has been the case historically, and it continues to hold true today. Waging war is no longer solely about manpower and traditional weaponry; it requires vast financial resources, technological infrastructure, and logistical agility. Modern warfare, as evidenced in the recent India-Pakistan tensions and the ongoing Ukraine-Russia conflict, is increasingly reliant on cutting-edge systems, cyber capabilities, unmanned vehicles, and precision weapons. The nature of war is evolving-and fast. It is now abundantly clear that a nation heavily dependent on foreign imports for its defence needs stands on precarious ground. The election of Donald Trump in the United States, and the policy shifts it brought, has underscored the geopolitical risks of import reliance in defence sectors, making it clear that self-reliance is no longer a choice, but a necessity.

Amidst this shifting global backdrop, India is waking up to the urgency of building a robust domestic defence manufacturing ecosystem. While the share of manufacturing in India's overall GDP has been declining, a significant exception has emerged in the form of defence manufacturing-a sector that is now showing a gradual, determined upward trajectory. This shift is not merely reactive, but strategic. The dynamics of global alliances have also shifted: China's proactive support to Pakistan in supplying arms and military technology has created an additional layer of urgency for India to bolster its own indigenous defence capabilities.