Time to pull the trigger on defence modernisation

Steps India must take to become global leader in military tech innovation, manufacturing, and exports

- BHASWAR KUMAR

India must increase its defence modernisation budget — the outlay for acquiring weapons, systems, and platforms — nearly two and a half times by the start of the next decade to meet its ambitious defence production targets and advance aatmanirbharta, say experts. Simultaneously, the share of research and development (R&D) in total defence expenditure needs to more than double, and the industry must triple the share of such spending in revenue.

With India fully utilising its military modernisation budget in 2024-25 (FY25), the first time in five years, and signing record ₹2 trillion defence contracts — twice the figure in FY24 — experts see the country well positioned to trigger a virtuous cycle in the domestic defence industry.

Speeding up field trials Rajinder Singh Bhatia, chairman of Kalyani Group's defence business and president of the Society of Indian Defence Manufacturers (SIDM), underscores that full utilisation of the modernisation budget and record contract signings come at a critical time. "A key learning from Operation Sindoor is the importance of indigenous equipment in ensuring sovereign control — from integration into command networks to timely capability upgrades. The government has sent a clear message to the industry: Scale up investments in production capacity and R&D. These developments will help realise the goal," he says.