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Counterpoint

India’s defence is strong — but not yet deep enough

The next war will not wait for India to complete a tender. It may begin with algorithms scanning satellite images, hackers probing electricity networks and inexpensive drones searching for radars, ammunition depots and command posts.

Precision missiles will follow. Electronic warfare will attempt to blind sensors and corrupt navigation signals, while fabricated videos and automated propaganda seek to confuse the public.

Mass drone warfare has already moved from military theory to battlefield routine. Ukraine and West Asia have shown how relatively cheap unmanned systems can locate artillery, strike armour, harass ships and force an opponent to expend costly missiles. Artificial intelligence increasingly helps identify targets, fuse intelligence, plan logistics and coordinate swarms.

India faces an especially unforgiving strategic landscape: a volatile, nuclear-armed Pakistan to the west; a much larger and technologically formidable China along the northern and eastern frontier; and an Indian Ocean increasingly frequented by extra-regional navies.

The true test of readiness, therefore, extends beyond winning a sharp exchange. India must be capable of sustaining a multi-domain conflict while keeping its ports, power grids, communications, transport networks and economy functioning.

Operation Sindoor offered India its clearest recent preview of technology-intensive warfare.

On the night of 7-8 May 2025, Pakistan attempted to attack military targets across northern and western India with drones and missiles. According to the government’s official account of the operation, India’s Integrated Counter-Unmanned Aerial Systems Grid and layered air defences neutralised the attacks.

Legacy Pechora and OSA-AK systems operated alongside low-level air-defence guns, indigenous Akash missiles, electronic-warfare equipment and newer counter-drone weapons. The Indian Air Force’s Integrated Air Command and Control System connected sensors and shooters across a wide area.

India also used loitering munitions and precision weapons offensively. Its electronic-warfare capabilities helped penetrate or suppress Pakistani defences. Later, the Defence Ministry said the Air Force’s IACCS had worked with the Army’s Akashteer and the Navy’s Trigun to create a unified operational picture.

That performance should inspire confidence but not complacency. A short, controlled confrontation cannot fully simulate a prolonged war involving sustained missile attacks, satellite disruption, cyber sabotage, mounting equipment losses and interrupted foreign supplies.

India has built a formidable first punch and a credible shield. It must now build greater depth behind both.

One of the urgent revisions India needs is to accept that drones are ammunition, not equipment. India’s armed forces have clearly recognised the unmanned revolution. The Air Force’s Mehar Baba competition produced a ₹300-crore order for an Indian swarm-drone system, while the Army had manufactured 819 drones internally by early 2026. The Army has also committed to giving every soldier drone-related training by 2027.

Yet scale changes everything.

India recorded 791 drone intrusions along its international border in 2025, mainly in Punjab and Rajasthan; 237 were neutralised, according to PRS Legislative Research’s defence analysis. Wartime swarms would present a far more demanding challenge.

India needs reconnaissance drones, one-way attack drones, electronic-warfare drones, high-altitude logistics drones, naval unmanned aircraft, unmanned surface vessels and underwater systems in very large numbers. Procurement must treat many of these platforms as rapidly evolving, expendable munitions — not as aircraft expected to remain unchanged for 20 years.

Counter-drone economics matter just as much. Firing a sophisticated surface-to-air missile at every inexpensive quadcopter would soon become unaffordable. India requires layers of jammers, spoofers, automatic cannon, interceptor drones, micro-missiles and directed-energy weapons, reserving costly missiles for the threats that justify them.

Domestic assembly alone will not provide genuine security. Motors, batteries, thermal cameras, secure communication modules, navigation systems, chips and electronic components must remain available when foreign suppliers restrict exports or global supply chains seize up.

Artificial Intelligence must move from demonstrations to doctrine. Indeed, AI should become the nervous system of the armed forces, not another procurement category.

India possesses abundant software talent and has begun developing AI-enabled surveillance, autonomous systems, predictive maintenance and decision-support tools. The Armed Forces’ 2025 technology roadmap explicitly identifies AI, autonomy, hypersonic weapons, space, cyber capabilities and networked warfare as priorities.

The harder task involves deployment at scale. A useful military AI system must work at the edge, with weak connectivity, under electronic attack and amid deliberate deception. It must distinguish a tank from a decoy, recognise manipulated intelligence and continue operating when cloud access disappears.

India should concentrate on five immediate applications: multi-sensor intelligence fusion; drone and counter-drone coordination; cyber-threat detection; predictive maintenance; and logistics forecasting. A common defence-data architecture would allow the three services to train and operate compatible systems without dissolving necessary security boundaries.

Command responsibility must remain unambiguous. AI may recommend, prioritise and warn, but a human chain of accountability should govern lethal decisions. Speed cannot become an excuse for opacity.

Further, India’s air power needs numbers as well as sophistication. The Indian Air Force retired its final MiG-21s in September 2025, leaving it with about 29 fighter squadrons against an authorised strength of 42. Tejas represents a major indigenous achievement, but production delays have widened the gap between retirement and replacement.

India cannot indefinitely compensate for insufficient mass with the quality of its Rafales, upgraded Sukhoi-30MKIs and advanced missiles. Even an exceptional aircraft can fly only one mission at a time. Attrition, maintenance and the demands of two geographically separated fronts quickly consume available strength.

Fighter induction must accelerate, but fighters alone will not solve the problem. India also requires more airborne early-warning aircraft, aerial refuellers, long-range weapons, hardened shelters, rapid runway-repair units, realistic decoys and large stocks of precision munitions. Manned-unmanned teaming should allow fighters to send cheaper autonomous aircraft ahead as sensors, jammers or weapons carriers.

Off India’s long coastline, the undersea contest may decide who rules the waters of the Indian Ocean, the Arabian Sea and the Bay of Bengal. India’s Navy remains the region’s strongest indigenous naval force. Its shipyards now build aircraft carriers, destroyers, frigates, submarines and anti-submarine vessels. Yet the maritime balance is moving quickly.

India operated 137 ships and submarines in 2025, but 53 per cent of its vessels were more than 15 years old. Fifty-eight ships were under construction and another 62 had received approval. China, meanwhile, has been commissioning more than 15 naval vessels annually and regularly sending submarines into the Indian Ocean, according to a parliamentary assessment summarised by PRS.

India needs faster submarine construction, including conventional boats with air-independent propulsion and nuclear-powered attack submarines. It also needs stronger seabed surveillance, maritime patrol aircraft, anti-submarine helicopters, underwater drones, mine-countermeasure vessels and replenishment ships.

The debate over another aircraft carrier should not crowd out these less glamorous capabilities. An adversary’s submarines, long-range missiles and unmanned systems may pose a greater daily threat to sea lanes than its carrier fleet.

Diego Garcia deserves perspective. The atoll hosts a British-American facility that provides logistical support to US forces in the Indian Ocean and Persian Gulf. It is not a Chinese or Pakistani base, and India’s expanding strategic partnership with the United States makes it inaccurate to describe the installation as inherently hostile.

Its existence nevertheless demonstrates the decisive value of distant logistics hubs. Governments and alignments can change. Friends can turn enemies overnight. India must strengthen the Andaman and Nicobar Islands, Lakshadweep, coastal airfields, protected fuel storage and overseas access arrangements so that no external power can dominate its maritime lifelines.

China poses the more direct long-term basing concern. It already operates a military support base in Djibouti, and the US Department of Defense assesses that Beijing has considered additional military access in countries including Pakistan, Bangladesh, Myanmar and Sri Lanka.

Beside the women, men and conventional war machines, a new crop of combatants is fighting today’s battles — satellites, cyber networks and defence manufacturing units.

Modern forces cannot shoot accurately if they cannot see or communicate. India has dedicated military satellites, strong launch capabilities and proven anti-satellite technology. During Operation Sindoor, the ISRO chairman said at least 10 satellites were working continuously for national security.

A small number of valuable satellites, however, can become attractive targets. India needs proliferated constellations, protected communications, rapid replacement launches, alternatives to satellite navigation and the ability to combine military, commercial and allied imagery.

Cyber defence must extend beyond military networks. A successful attack on ports, railways, banks, telecommunications or the electricity grid could slow mobilisation without striking a single military formation. Regular national exercises should test how civilian and military systems operate under simultaneous cyberattack, misinformation and communications failure.

Industrial resilience presents an equally important challenge. India’s defence exports reached a record ₹38,424 crore in 2025-26, rising almost 63 per cent in one year. Indigenous missiles, radars, artillery, naval vessels and electronic systems represent genuine advances.

At the same time, SIPRI ranked India as the world’s second-largest arms importer during 2021-25, accounting for 8.2 per cent of global imports. Russia still supplied 40 per cent of those imports, although India has diversified towards France, Israel and the United States.

An Indian label on a platform means little if its engine, seeker, transmission, semiconductor or critical material becomes unavailable during a crisis. Self-reliance must be measured by the ability to repair, replenish and modify equipment without foreign permission.

Military factories and defence manufacturing lines must also possess surge capacity. A country prepared for 10 days of combat may not remain prepared after 100. India should maintain rotating war reserves, multiple qualified suppliers for critical components and production lines that can expand quickly. Long-term orders would give private companies a commercial reason to invest in capacity before an emergency.

The 2026-27 defence allocation reached a record ₹7.85 lakh crore, including ₹2.19 lakh crore under the capital head. Yet the total amounts to about 2 per cent of GDP, below the 3 per cent recommended by a parliamentary committee.

Only 29 per cent of defence expenditure goes towards capital outlay, against a previously recommended 40 per cent. Defence research accounts for an estimated 3.7 per cent of expenditure, down from 4.7 per cent in 2014-15. India’s own Defence Ministry has sought a gradual increase in R&D spending towards 10 per cent over the next decade.

More money will not automatically create readiness. Stable priorities, competitive development, realistic testing and faster decisions matter just as much. India’s procurement system must accept iterative improvement instead of waiting endlessly for a perfect indigenous system—or importing one after domestic delays become intolerable.

Jointness completes the equation. Operation Sindoor showed what integrated sensors and command networks can achieve. The next step must connect planning, logistics, airspace management, cyber operations, intelligence and long-range targeting across all three services. Organisational boundaries cannot be allowed to slow a kill chain that operates in seconds.

So, is India ready?

India can defend vital targets, impose serious costs and respond with precision. Few adversaries could treat its military power lightly. But prolonged, simultaneous conflict across two land fronts and the Indian Ocean—conducted under cyberattack, satellite disruption and supply-chain pressure—would expose important shortages.

Five priorities demand urgency: expendable drones and economical counter-drone systems; greater combat-air mass and its supporting enablers; undersea and anti-submarine power; resilient space and cyber networks; and an indigenous industrial base capable of replenishing losses at wartime speed.

India has fashioned an increasingly sharp spear. It now needs a much larger quiver, a more resilient shield and the industrial workshop capable of replacing both while the battle continues.

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Corporate

Reliance Rolls-Royce join hands for AMCA fighter engine

Reliance Industries and British aerospace major Rolls-Royce have announced a strategic partnership to jointly develop and manufacture a combat aircraft engine for India’s Advanced Medium Combat Aircraft (AMCA) programme, potentially giving a major boost to the country’s efforts to build critical defence technology at home.

The proposed collaboration will combine Rolls-Royce’s expertise in aircraft propulsion with Reliance’s manufacturing capabilities. The companies also plan to explore setting up an Aerospace Gas Turbine Complex in India, which could create an industrial base for developing and manufacturing advanced aero engines.

The announcement comes as India accelerates its flagship fifth-generation fighter aircraft programme. The AMCA is being developed by the Aeronautical Development Agency (ADA) under the Defence Research and Development Organisation (DRDO), with the Indian Air Force expected to be its primary user.

India’s Fighter Engine Challenge

For India, the engine remains one of the most difficult parts of the AMCA programme.

The country has developed sophisticated fighter airframes, missiles, radars and avionics, but has remained dependent on foreign suppliers for high-performance military engines. The proposed Reliance-Rolls-Royce partnership therefore focuses on one of the biggest gaps in India’s defence self-reliance strategy.

The companies intend to work towards designing, developing, manufacturing and delivering a combat engine in India. However, they have not disclosed the proposed investment, precise engine specifications or a detailed development schedule.

The partnership also does not automatically amount to a government contract for the AMCA engine. The Indian government will ultimately decide which engine proposal best fits the aircraft programme.

Rolls-Royce already has a long association with India’s defence sector. Its engines have powered several Indian military aircraft, while the company has also supported licensed engine manufacturing in the country. The new proposal aims to take that relationship further towards co-development and deeper domestic manufacturing.

Why AMCA’s Engine Matters

The AMCA is designed to become India’s first indigenous fifth-generation fighter jet, featuring stealth characteristics, internal weapons bays, advanced sensors and network-centric capabilities.

The programme is moving into a crucial development phase, with India seeking greater participation from private industry alongside its traditional defence companies. The first prototype is targeted for around 2028, while serial production is expected in the 2030s.

That makes the choice and development of the aircraft’s engine one of the most important decisions facing the programme.

India’s previous experience shows why the challenge is significant. The DRDO’s Kaveri engine programme was originally intended to power the Light Combat Aircraft but struggled to meet the required thrust and performance parameters.

As a result, Indian fighter aircraft have continued to rely heavily on imported engines. The Tejas, for instance, uses engines supplied by GE Aerospace. Delays in imported engine supplies have also affected aircraft production.

The AMCA is intended to break that cycle by developing a more secure and technologically advanced domestic propulsion capability.

Competition And A Bigger Industrial Push

The Reliance-Rolls-Royce proposal is likely to intensify competition among international engine manufacturers seeking a role in India’s next-generation fighter programme.

Safran of France has separately been discussing cooperation with India on a high-thrust fighter engine, while GE Aerospace already has a significant role in India’s military aviation ecosystem.

The objective is ultimately bigger than selecting an engine supplier. India wants to develop the ability to design, manufacture, maintain and eventually export advanced aircraft engines.

The partnership also underlines the growing role of India’s private sector in defence manufacturing. Reliance has a major presence across energy, telecommunications and retail, while its expanding defence interests are taking it into increasingly sophisticated areas of aerospace and military production.

Reliance’s growing presence across sectors is part of a wider trend of major Indian companies expanding into new businesses and strategic partnerships. More such corporate developments are covered in our Corporate News section.

An aero-engine project would require investment in precision manufacturing, specialised materials, testing infrastructure, engineering talent and a domestic supplier network. The proposed Aerospace Gas Turbine Complex could become an important part of that ecosystem if the project moves forward.

The proposed collaboration does not immediately solve India’s fighter-engine problem. Developing, testing and certifying a modern combat engine can take years and involves substantial technical and financial risks.

But it represents an important shift in India’s approach to defence manufacturing and aerospace self-reliance. For decades, the country has built fighter aircraft around imported propulsion systems. The AMCA offers an opportunity to change that model.

If the Reliance-Rolls-Royce effort succeeds, its impact could extend well beyond one aircraft. It could help India build the engineering, manufacturing and technology ecosystem needed for future combat aircraft.

For the AMCA, an advanced stealth airframe is only as capable as the engine that powers it. Developing that capability in India could become one of the defining tests of the country’s ambition to emerge as a major aerospace power.

Categories
Beyond

Defence budget nears 2% of GDP, gets ₹7.85 lakh cr

The Union Budget 2026-27 has delivered a strong push to India’s defence preparedness, with Finance Minister Nirmala Sitharaman announcing an allocation of ₹7.85 lakh crore for the Ministry of Defence. The outlay marks a 15 per cent increase over the previous year and brings defence spending close to 2 per cent of the country’s GDP, a level long recommended by strategic and military experts.

Defence continues to remain the single largest item in the Union Budget, accounting for nearly 15 per cent of total government expenditure. The increase reflects India’s intent to strengthen its armed forces amid evolving regional security challenges and rising geopolitical uncertainties.

A major highlight of the allocation is the sharp rise in capital expenditure, which is aimed at acquiring new platforms, weapons and military infrastructure. Around ₹2.19 lakh crore has been earmarked for modernisation, supporting purchases of fighter aircraft, aero engines, naval vessels and advanced equipment for the Army, Navy and Air Force.

The budget also reinforces the government’s commitment to Atmanirbhar Bharat in defence. Nearly three-fourths of the capital procurement budget has been reserved for domestic manufacturers, providing a strong boost to India’s defence industry and reducing reliance on imports. This move is expected to encourage private sector participation and strengthen defence exports.

Support for research and innovation has also been enhanced. Funding for the Defence Research and Development Organisation (DRDO) has been increased by about 9 per cent, underlining the focus on indigenous technology development and next-generation defence systems.

Apart from capital spending, a significant portion of the defence allocation will go towards revenue expenditure, including salaries, pensions, training, operations and maintenance, ensuring operational readiness and troop welfare.

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Beyond

Union Budget has growth, health, defence priorities

Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27 in Parliament on 1 February 2026, laying out a roadmap for economic growth, job creation, healthcare improvement, defence self-reliance, and tax simplification. The Budget seeks to maintain fiscal discipline while supporting investment-led development across key sectors of the economy.

At the macroeconomic level, the government has set the fiscal deficit target at 4.3% of GDP, reflecting its commitment to gradual fiscal consolidation. Total expenditure has been increased, with a strong focus on capital spending, which has been raised to a record ₹12.2 lakh crore, signalling a continued emphasis on infrastructure development and long-term productivity.

Infrastructure remains a central pillar of the Budget. The government announced the creation of seven high-speed rail corridors connecting major urban and industrial hubs to improve connectivity and reduce travel time. A new Dedicated Freight Corridor from Dankuni to Surat is expected to enhance cargo movement, making trade faster and more cost-efficient. The development of 20 National Waterways aims to expand inland shipping and reduce the environmental impact of transport, while urban metro networks, road projects, and multimodal transport hubs will enhance last-mile connectivity. These investments are expected to generate employment and boost the efficiency of supply chains across the country.

The Union Budget also places strong emphasis on manufacturing and strategic industries. The India Semiconductor Mission 2.0 was announced to expand domestic chip manufacturing, research, and design capabilities, supporting India’s push for technological self-reliance. To reduce dependence on imports, Rare Earth Corridors will be developed in mineral-rich states, supporting clean energy, electronics, and defence industries. Additionally, the ₹10,000 crore Biopharma Shakti initiative seeks to position India as a global hub for biopharmaceuticals, with investments in vaccine production, biologics, and essential medicines. Measures to modernize textiles, container manufacturing, industrial parks, and promote startups are expected to generate employment and enhance exports.

Healthcare and social development received significant attention in the Budget. Expansion of cancer care infrastructure and early detection programmes was announced to improve access to treatment. Mental health services will be strengthened through district-level facilities, integration into primary healthcare, and expanded counselling and emergency support. The Budget also proposes the establishment of three new All India Institutes of Ayurveda to promote research, education, and the global outreach of AYUSH. Additional support has been allocated to public hospitals, life-saving medicines, and emergency care facilities, reflecting a comprehensive approach to health and wellness.

Defence and national security continue to be priorities. The Budget allocates higher funding for domestic defence manufacturing, research and exports under the ‘Make in India’ framework. Development of defence corridors and public-private partnerships is expected to reduce import dependence and strengthen India’s strategic autonomy.

The government has also taken measures to support farmers, rural communities, and MSMEs. Initiatives to improve productivity, promote high-value crops, strengthen fisheries, and enhance irrigation have been outlined, along with the use of digital platforms to improve access to markets and credit for farmers. MSMEs and startups are set to benefit from a proposed ₹10,000 crore Growth Fund, simplified compliance processes, and easier access to credit.

On the taxation front, the Budget introduces relief and simplification. A new Income Tax Act, effective from April 2026, will streamline forms and filing processes. Deadlines for revised returns have been extended, and penalties for minor defaults reduced. TCS rates on overseas education, medical treatment, and foreign travel have been lowered to 2%, while the Minimum Alternate Tax for companies has been cut to 14%. Tax incentives have also been provided to foreign cloud service providers operating from Indian data centres to attract investment in the digital economy.

The Union Budget 2026–27 seeks to balance fiscal prudence with growth-oriented reforms, focusing on infrastructure, manufacturing, healthcare, defence, rural development, and tax simplification.

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