The Indian Ministry of Defence (MoD) is set to implement Defence Reform 2.0 in 2025. This initiative aims to streamline complex acquisition processes. The goal is to enhance self-reliance in defence, known as Aatmanirbharta. The current Defence Acquisition Procedure 2020 will undergo changes to meet service requirements more effectively. This reform comes in response to the armed forces’ and industry’s calls for quicker and more efficient acquisition methods.
Current Defence Acquisition Landscape
The MoD has identified over 500 schemes for enhancing military capabilities over the next 15 years. These schemes encompass various categories, including force application, battlefield awareness, command and control, sustenance, and protection. The Defence Procurement Board (DPB) has approved the Annual Acquisition Plan (AAP) for 2024-26, with 25 schemes prioritised and estimated to cost ₹40,695 crore.
Special Provisions for Capability Development
To address critical capability gaps, the MoD has introduced a special provision called EP-IV. This was established by the Defence Acquisition Council (DAC) in August 2023. A total of 73 Capability Development schemes have been contracted, focusing on areas such as drone technology, weapon systems, and mobility enhancements.
Indigenous Procurement Trends
From 2021 to 2024, the MoD concluded 158 capital acquisition contracts worth ₹70,028 crore. Notably, 97.3% of these contracts, amounting to ₹68,121 crore, were awarded to Indian vendors. In the current year, 16 contracts have been finalised, with 14 involving Indian industry. This trend puts stress on a commitment to boost domestic capabilities in areas like small arms and remotely piloted aerial systems.
Major Contracts and Collaborations
In September 2024, the DAC approved 10 capital acquisitions valued at ₹1,44,716 crore. This includes Future Ready Combat Vehicles and Air Defence Fire Control Radars. A contract was signed with the US government for the procurement of 31 MQ-9B Sky/Sea Guardian drones. Additionally, General Atomics Global India Pvt Ltd will provide Performance Based Logistics for these drones, ensuring maintenance and support within India.
Future Directions and Challenges
The upcoming reforms aim to reduce the lengthy acquisition timeline, which currently spans a minimum of seven years. The rapid pace of technological advancements necessitates quicker induction of new systems. The MoD’s focus on indigenous procurement is expected to enhance operational readiness while reducing dependency on foreign suppliers.
Questions for UPSC:
- Critically examine the impact of Aatmanirbharta on India’s defence procurement strategy.
- Discuss in the light of current global trends, the significance of indigenous defence manufacturing in India.
- Explain the role of technology in modern warfare and its implications for defence strategies.
- What are the challenges faced by the Indian defence sector in achieving self-reliance? Provide suitable examples.
Answer Hints:
1. Critically examine the impact of Aatmanirbharta on India’s defence procurement strategy.
- Aatmanirbharta emphasizes self-reliance, reducing dependency on foreign suppliers.
- Over 97% of recent contracts were awarded to Indian vendors, boosting local industries.
- Streamlined acquisition processes aim to expedite procurement timelines.
- Encourages innovation and development of indigenous technology and capabilities.
- Strengthens national security by enhancing operational readiness and indigenous capacity.
2. Discuss in the light of current global trends, the significance of indigenous defence manufacturing in India.
- Global supply chain disruptions highlight the need for self-sufficiency in defence.
- Indigenous manufacturing reduces reliance on foreign technology and procurement.
- Promotes job creation and economic growth within the domestic sector.
- Aligns with global trends towards national security and defense autonomy.
- Facilitates quicker response to emerging threats through local production capabilities.
3. Explain the role of technology in modern warfare and its implications for defence strategies.
- Technology enhances battlefield capabilities through advanced weaponry and surveillance.
- Cyber warfare and electronic warfare are critical components of modern conflicts.
- Rapid technological advancements necessitate agile and adaptive defence strategies.
- AI and drones are reshaping combat tactics and operational planning.
- Integration of technology into defence systems is vital for maintaining competitive advantage.
4. What are the challenges faced by the Indian defence sector in achieving self-reliance? Provide suitable examples.
- Long acquisition timelines hinder timely induction of new technologies.
- Limited R&D investment affects the development of indigenous capabilities.
- Regulatory complexities and bureaucratic hurdles slow down procurement processes.
- Dependence on foreign technology persists in certain advanced sectors, like aerospace.
- Examples include delays in the development of indigenous fighter aircraft and submarines.
