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India’s Defence Industrial Mindset needs a Rethink

Sub Title : Indian military industry needs to innovate and not just replicate the West

Issues Details : Vol 19 Issue 5 Nov – Dec 2025

Author : Ashwani Sharma, Editor-in-Chief

Page No. : 36

Category : Military Technology

: December 5, 2025

A few days ago, the Chief of Defence Staff made an unusually direct and important appeal to India’s defence industry. He urged Indian companies to be more patriotic, more innovative, and more conscious that they are performing a national duty, not merely chasing quarterly profits. His words carry significance not just because of who he is, but because of the moment India finds itself in, which is a moment where the country is attempting more seriously than ever before to build an indigenous defence industrial base.

For over a decade now, the Government has maintained a consistent policy push towards indigenising military technologies and platforms. From strategic systems to armoured vehicles, from small arms to C4ISR architecture, the aim is to strengthen national military capability, reduce external dependencies and build a resilient industrial–military ecosystem. But indigenisation cannot just remain a slogan. It is a complex transformation that requires alignment between political leadership, the armed forces, industry, academia and the R&D establishment. And this is precisely where the CDS’s message hits home.

Why Indian Industry Follows instead of Leading. One of the more uncomfortable truths about India’s defence ecosystem is that our industry tends to produce “more of the same.” Instead of pioneering original concepts or breakthrough technologies, the dominant pattern has been to chase technologies already developed by more advanced militaries which implies systems designed abroad, refined abroad, and often outdated by the time they are replicated here. If the trend continues, this will ensure one thing – that India will always be catching up, never leading.

When the technology curve moves rapidly, AI-enabled warfare, directed energy systems, autonomous swarms, space-based ISR etc will imply that any lag of even five years becomes a full generational handicap. If Indian industry confines itself to incremental improvements or derivative designs, the armed forces will remain permanently behind the curve, forced to borrow concepts rather than define them.

Yet the irony is that today’s technological revolution offers India a chance to skip an entire generation- to leapfrog rather than follow. Autonomous systems, drones, robotics, advanced materials, AI-driven command systems… these fields are new enough that no country has fully mastered them. It is, therefore, an opportunity that India has to shape the battlefield of the future rather than adapt to it after others do.

The Army Chief’s Vision for Modernisation

Incidentally, last week, while delivering the Cavalry Memorial Address during the Mechanised Forces Symposium, General Upendra Dwivedi, the Chief of the Army Staff, laid out an ambitious and futuristic modernisation plan. His vision emphasised next-generation armoured platforms, seamless manned–unmanned teaming, stronger battlefield networks, and indigenous solutions tailored to the Indian operational environment.

For such a plan to fructify, the R&D ecosystem and the domestic defence industry will have to measure up to the scale and ambition of the Army’s expectations. The Chief’s address reinforced the same message as the CDS- India cannot depend on incrementalism any longer. The Services are ready to move forward; the real question is whether industry is ready to move with them.

The Misunderstood ‘User’. A popular narrative in industry circles is that the armed forces “do not know what they want,” or that their requirements are too detailed, too shifting, or too ambitious. But this criticism oversimplifies reality. The truth is this – the military tailors its requirements to what industry can actually deliver.

If the industry’s technological ceiling is low, the Services naturally adjust expectations downward. This gets accentuated by the need to have at least more than one vendor/OEM in the race. When requirements become aspirational, the military is quickly accused of “asking for the moon.”

In contrast, advanced militaries benefit enormously from industries that push them forward.

In the United States, companies such as Palantir, Lockheed Martin, Anduril and SpaceX etc present the military with technologies that redefine what is possible. The military does not always invent the future, it often responds to what industry has created.

This is the missing piece in India’s ecosystem.

The armed forces cannot demand technologies that industry has no intention of developing. Meanwhile, industry waits for the Services to specify every technical detail, creating a loop that produces replication instead of innovation. The result thus is predictable- an acquisition system stuck in the cycle of catching up rather than leading.

An Opportunity India Must Not Miss. India’s geopolitical environment demands that the country moves faster and more boldly. A two (and half) front threat, contested borders, rapid Chinese military modernisation, and the global shift toward multi-domain warfare all require a defence industrial base that is nimble, ambitious, and future-oriented. The ongoing revolution in warfare which includes drones, AI, precision fires, robotics, sensor fusion, loitering munitions is disruptive, not incremental.

But seizing that advantage requires a change in mindset. Industry must stop waiting for the Services to define the future, and start helping create it. This is what the CDS meant when he spoke of patriotism—not sentimentality, but a deeper responsibility to the nation’s security and technological sovereignty.

Civil–Military–Industry Partnership. If India wants to break out of its perpetual chase for last-generation technology, the following are essential:-

          Industry must invest in R&D, not merely assembly, licensed production, or cosmetic upgrades.

          The armed forces must articulate long-term capability roadmaps, giving industry a horizon to innovate towards.

          The armed forces should also assume leadership for all major projects, embed qualified officers and guide them to conclusion.

          Government policy must incentivise risk-taking in taxation, procurement, and regulatory frameworks. The government must also invest adequately to help create the military industrial complex in the country.

The goal should be an ecosystem wherein (i) the military is not just a buyer, (ii) industry is not just a supplier, and (iii) R&D is not just an academic exercise. All the three must become co-creators of India’s military technological future.

Conclusion. India stands at a rare inflection point. The global technological landscape is shifting so rapidly that even established military powers are struggling to keep pace. This disruption gives India a chance to innovate rather than imitate, lead rather than follow. For that to happen, the Indian defence industry must embrace the spirit behind the CDS’s words, not as criticism, but as a challenge. A challenge to think boldly, take risks, and recognise that national security is not merely a market – it’s a mission.

If India chooses to get ahead of the curve rather than chase it, this could indeed be the decade in which our defence industry finally comes into its own.