India's Defence Industry: The State of Play

Episode Notes

Lt Gen P. R. Shankar outlines the evolution of India’s defense industry and how it is nurturing a growing ecosystem of indigenous production. He highlights that India’s armed forces have always been adequately equipped for national defense, the key question being whether it can develop a defence industry that would enable it to act as a regional power.

The discussion explores the historical structure of India’s defence sector, traditionally dominated by public sector organizations such as the Defence Research and Development Organisation (DRDO). It traces the gradual but significant entry of private players into the defence industry, marking a shift towards a more diversified and dynamic ecosystem. Gen. Shankar emphasizes that meaningful reform in procurement processes does not necessarily require more rules; rather clarity of intent, domain expertise, and better coordination among the armed forces, bureaucracy, political leadership, and industry. A key highlight of the episode is the artillery modernization program, which serves as a successful case study of long-term strategic planning and sustained execution, offering valuable lessons for other sectors and weapon systems. The conversation also delves into the relevance of international defense partnerships for deeper co-development and interoperability. Finally, broader reforms such as the introduction of positive indigenization lists, a more robust export policy, and the inclusion of startups and academic institutions like the Indian Institutes of Technology, are seen as critical to strengthening India’s defense industry.

Episode Contributors

Lt Gen P.R. Shankar (Retd.) is the former Director General of Artillery in the Indian Army and currently a professor in the Aerospace Department at IIT Madras. He has played a key role in India’s artillery modernization and frequently writes on strategic and defense issues. He also runs a YouTube channel, Gunner’s Shot, focusing on defense and geopolitical affairs.

Saheb Singh Chadha is a senior research analyst in the Security Studies Program at Carnegie India. His research focuses on China’s foreign and security policies, India-China relations, and India’s military modernization. He is broadly interested in the geopolitics of South Asia and the Indo-Pacific. He is also a researcher on a project examining the nature and dynamics of cross-border violence and its impact on civilian communities.

Further reading:

1. The Indigenisation of India’s Defence Industry by Dhruva Jaishankar.
2. Framework to restrict Chinese components in military drones submitted to defence ministry by Smruti Deshpande
3. CCS clears mega deal for big indigenous artillery guns by Rajat Pandit
4. Indian defence firms need to invest more in innovations and R&D to keep pace with global standards: Report
5. Defence Procurement Overhaul: MoD Aims To Cut Delays, Faster Acquisitions
6. https://pib.gov.in/PressReleseDetailm.aspx?PRID=2114546®=3&lang=1
7. https://www.business-standard.com/external-affairs-defence-security/news/indian-defence-exports-from-brahmos-to-akash-who-are-the-major-buyers-124102800396_1.html

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