In 2024, India’s defence sector witnessed substantial developments in vehicle modernisation, infrastructure enhancement, and strategic partnerships, writes Ashish Bhatia.
With increasing regional security challenges and an emphasis on self-reliance, the Ministry of Defence (MoD) has taken significant steps to bolster the nation’s military capabilities. The budget allocation of Rs.6.22 lakh crore for FY 2024-25 marked a 4.79 per cent increase over the previous year, reinforcing the government’s commitment to strengthening India’s defence ecosystem.
Defence vehicles modernisation
Modernisation of India’s defence vehicles remains a top priority, with a focus on indigenous manufacturing and technological advancements. DRDO played a pivotal role in this transformation, successfully testing hypersonic missile technology capable of exceeding Mach 5 speeds. This breakthrough places India among an elite group of nations with such strategic deterrence capabilities.
The induction of the K9 Vajra-T self-propelled howitzers further bolstered the Indian Army’s artillery. The MoD allocated Rs.1.72 lakh crore for capital acquisitions, facilitating the procurement of Unmanned Aerial Vehicles (UAVs), Armoured Personnel Carriers (APCs), and next-generation combat vehicles. Additionally, the Arjun Mark-1A main battle tank, developed by DRDO, underwent successful field trials, solidifying its role in India’s armoured formations. Meanwhile, efforts to upgrade the indigenous Light Combat Vehicle (LCV) and Infantry Combat Vehicles (ICVs) advanced significantly, aligning with the Atmanirbhar Bharat initiative.
Infrastructure development and strategic connectivity
Investment in defence infrastructure saw a notable increase in 2024, with Rs.6,500 crore allocated to the Border Roads Organisation (BRO), a 30 per cent increase from the previous year. This funding supported projects aimed at enhancing connectivity in border areas, including the construction of the Nyoma Airfield in Ladakh, located at an altitude of 13,700 feet. This airfield will significantly improve rapid troop deployment capabilities in high-altitude regions.
The development of key tunnels, such as the Shinku La Tunnel in Himachal Pradesh and the Sela Tunnel in Arunachal Pradesh, further improved strategic mobility for the armed forces. Additionally, the Indian Air Force (IAF) expanded its operational reach by upgrading forward air bases along the northern and eastern frontiers. The government also pushed for indigenisation in defence logistics, with new supply chain networks ensuring efficient deployment of military assets in remote locations.
Strategic collaborations with neighbouring countries
India’s defence diplomacy in 2024 focused on strengthening ties with neighbouring nations while countering regional threats. Collaborative efforts with Bhutan, Nepal, and Bangladesh emphasised intelligence sharing, joint training exercises, and arms cooperation.
India’s defence exports reached new heights, intending to achieve USD five billion by 2025. Agreements with Vietnam, the Philippines, and Indonesia further enhanced India’s position as a regional defence supplier. Notably, India supplied BrahMos supersonic cruise missiles to the Philippines, reinforcing its influence in the Indo-Pacific region.
Strategic collaborations with the United States, Russia, and France played a crucial role in the procurement and co-development of advanced defence technologies. The Indo-US partnership under the Defence Trade and Technology Initiative (DTTI) facilitated the joint development of UAVs and advanced artillery systems. Meanwhile, India continued its defence cooperation with Russia, securing additional S-400 missile defence systems and expanding discussions on co-developing next-generation fighter jets.
The role of the private sector in Defence manufacturing
The Private sector participation in India’s defence industry expanded significantly in 2024, complementing public-sector efforts to achieve self-reliance. Companies such as Larsen & Toubro (L&T), Tata Advanced Systems, and Bharat Forge played key roles in manufacturing armoured vehicles, naval warships, and aerospace components.
L&T, a major private defence contractor, advocated for increased reliance on domestic suppliers over state-owned enterprises and imports. With about five per cent of its USD 27 billion annual revenue derived from the defence sector, L&T contributed to major naval and air force projects, including the construction of warships and radar equipment production. Additionally, the Defence Public Sector Undertakings (DPSUs) partnered with private firms to codevelop next-generation military platforms, fostering innovation and efficiency.
The Innovations for Defence Excellence (iDEX) initiative witnessed a fivefold increase in funding, from Rs.115 crore to Rs.518 crore. This initiative encouraged startups and Micro, Small, and Medium Enterprises (MSMEs) to develop indigenous defence solutions, resulting in breakthroughs in AI-powered surveillance systems and next-generation communication networks.
DRDO’s advancements
DRDO’s budget allocation increased to Rs.23,855 crore in FY 2024-25, with a strong focus on capital expenditure. This funding supported projects in missile technology, electronic warfare systems, and indigenous fighter jet development. One of DRDO’s key successes was the completion of trials for the Astra Mk-II air-to-air missile, designed to enhance the IAF’s beyond-visual-range combat capabilities. Additionally, the development of the Advanced Medium Combat Aircraft (AMCA) progressed steadily, with the prototype expected to undergo initial trials by 2025.
India also made significant strides in space-based defence systems, with DRDO collaborating with ISRO on satellite-based surveillance and early warning systems. The integration of AI-driven defence technologies in unmanned systems, including autonomous tanks and robotic reconnaissance units, further showcased India’s growing expertise in next-generation warfare.
Challenges and opportunities
Looking ahead, India’s defence sector is poised for continued growth, driven by an emphasis on indigenisation, strategic alliances, and emerging technologies. The MoD’s policy framework aims to reduce reliance on imports by increasing domestic production through public-private collaborations. Challenges persist, particularly in streamlining procurement processes, ensuring timely project execution, and addressing cybersecurity threats. However, initiatives such as the Defence Production and Export Promotion Policy (DPEPP) and the Make in India programme provide a robust roadmap for overcoming these hurdles. The development of hypersonic weapons, quantum computing applications in defence, and AI-powered battlefield management systems will be key focus areas in the coming years.
With a well-structured approach to modernisation, infrastructure development, and strategic partnerships, India is on course to solidify its position as a global defence powerhouse. Bharat Electronics Ltd. (BEL) was conferred with the SIDM Champion Award for 2024 by Raksha Mantri under the category Import Substitution for the development of Thermal Imager Technology modules for T90 Tanks. BEL is the only DPSU to receive the SIDM Championship Award 2024. A historical milestone was achieved as BEL was granted its 150th patent, fostering Aatmanirbharta efforts and enhancing the culture of innovation in BEL. A Tripartite MoU was signed between BEML, BEL and MIDHANI for the Development of Advanced Fuelling and Control System for Engines.
A significant step towards self-reliance. Indigenisation of the Bearing of T-90 Tank Article has been completed by AWEIL. This is an important milestone towards the successful completion of indigenisation and a step towards Aatmanirbhar Bharat. DRDO has carried out more than 1,800 Transfer of Technologies (ToTs) to Indian Industry including both Private and public. ToT is being carried out as per the policy and procedure approved by Raksha Mantri. Development Cum Production Partner (DcPP)/ Development Partners (DP)/ Production Agency (PA) of DRDO are given Technology free of cost i.e. at “Nil ToT Fee”. DRDO has a Policy for Free Access to DRDO Patents by Indian industries. This is likely to increase the technological capabilities of industries and enhance their competitiveness in the global supply chain.
