NDTV Defence Summit 2025: Building India’s Defence Backbone

Summary

The discussion highlights crucial reforms needed to strengthen India's defense sector. Experts emphasize the need for increased R&D funding, especially for MSMEs and startups, and a shift from a cautious 'fail-safe' procurement process to a more flexible, 'fail-fast' approach. The importance of owning core defense technologies like propulsion systems and warheads was also stressed. Experts urged the government to focus on immediate reforms to enhance the global competitiveness of India's private defense sector, streamline procurement processes, and foster innovation. Clear success metrics for these reforms were recommended to ensure measurable progress.

Takeaways

• 😀 India needs to invest more in R&D for the defense sector, with current funding being minimal (0.45% of total spending).
• 😀 MSMEs and startups in the defense sector face challenges with working capital, and a fully government-funded approach could help boost innovation.
• 😀 The current defense procurement system is outdated and needs a shift from 'fail-safe' to 'fail-fast' to stay agile and adopt new technologies quickly.
• 😀 Quality control processes should be digitized and integrated into manufacturing to reduce the time spent on inspections and improve efficiency.
• 😀 Ownership of core technologies such as propulsion, warheads, and propellants is essential for self-sufficiency in defense production.
• 😀 Collaboration between industry, academia, and the defense sector is crucial for the development of indigenous defense technologies.
• 😀 Reforms should have clear success metrics, such as reducing the time to contract, license, and produce domestically-made subsystems to international standards.
• 😀 Immediate and short-term reforms should be prioritized in the defense sector, as there’s no time to wait for medium-term changes.
• 😀 The government must focus on creating a globally competitive private defense sector in India that can also supply to international markets.
• 😀 Effective reforms should be specific, actionable, and measurable, with clear timelines for implementation and tracking success.

Q & A

What is the key challenge in the Indian defense sector that needs immediate attention?

The key challenge is the slow procurement process, which significantly delays defense capabilities. The current system takes too long to award contracts, and there is a need for reforms to speed up the process and make it more efficient.

What are the main recommendations for reforming India's defense procurement system?

The primary recommendation is to shift from a 'fail-safe' approach to a 'fail-fast' model. This would allow for faster iterations and adaptability in response to technological advancements. Additionally, reducing bureaucratic delays and setting clear deadlines for procurement processes is crucial.

How can the Indian defense sector foster more innovation in the private sector?

Innovation in the private sector can be encouraged by increasing funding for R&D, providing better financial support to startups and MSMEs, and ensuring that private players are not at a disadvantage compared to PSUs in terms of access to contracts and resources.

What role do MSMEs and startups play in the future of India's defense industry?

MSMEs and startups play a critical role in driving innovation and providing fresh solutions to defense challenges. However, they face financial hurdles, as the government typically requires them to co-invest significant amounts, which they often cannot afford. More government funding, such as fully financing the development of defense technologies, could help address this issue.

What is the significance of R&D in achieving self-sufficiency in defense technology?

R&D is fundamental to achieving self-sufficiency as it allows India to develop core technologies such as propulsion systems, warheads, and seekers. Without owning these critical technologies, India will be dependent on foreign players, which undermines the goal of Atmanirbhar Bharat.

What suggestions were made to improve India's defense R&D spending?

The suggestion is to significantly increase India's defense R&D spending, currently at just 0.45% of the defense budget. This would ensure that India can develop indigenous technologies, reduce dependence on foreign imports, and encourage private-sector innovation.

Why is it necessary for defense manufacturing to incorporate technology into quality control?

Incorporating technology into quality control processes is necessary to speed up production and improve the overall quality of defense equipment. Digital inspections and real-time quality checks can help reduce delays and ensure that the equipment meets the highest standards of reliability and performance.

What is the proposed approach to defense exports, and why is it important?

The proposed approach to defense exports is to streamline the process by pre-approving certain countries for exports, which would facilitate faster and more efficient sales of defense products. This is important because it would help India tap into the global defense market, generate revenue, and strengthen geopolitical relationships.

What is the role of academia in supporting India's defense innovation?

Academia plays a crucial role in supporting defense innovation by collaborating with industry to conduct research and development on core defense technologies. This partnership ensures that the necessary intellectual resources and cutting-edge research are available to address India’s defense needs.

What metrics should be used to evaluate the success of defense reforms?

Success metrics for defense reforms should include the reduction in time-to-contract for private players, the percentage of R&D spending as a share of turnover, the number of domestically produced subsystems achieving international standards, and improvements in procurement timelines.