Category Articles

The 2025 tariff wars have destabilized the global defense industry by disrupting intricate supply chains, raising costs, and straining geopolitical alliances. Defense production, heavily reliant on rare earth elements and semiconductors, faces delays and cost inflation due to tariffs and export bans. Major arms producers like the U.S., EU, China, and emerging exporters like India are significantly impacted. India, facing U.S. tariffs and supply disruptions, must diversify suppliers, invest in domestic capabilities, and forge new alliances to mitigate risks. Strategic partnerships, R&D investments, and defense trade agreements are essential to sustaining India's defense industry amid global instability.

India’s quest for self-reliance in military hardware has been underway for more than three decades now. While numerous committees have been formed over the years to examine the issue and recommend the way forward and incremental measures have been introduced from time to time, it is only recently that the MOD is in mission mode to achieve a transformation in the Indian military Industrial complex. The adverse effects of the Russia - Ukraine war on the delivery of equipment and spares from Russia as well on global supply chains, has highlighted the urgency of this transformation, especially in light of the tensions on our northern borders. Towards this end various measures have been implemented, primarily by way of procurement policies focused on indigenous products, discouragement of imports, rationalization of tax structures to provide a level playing field to all players private or public, encouragement of exports, incentives for SMEs/MSMEs, funding for defence innovations, streamlining of acquisition procedures including defence offsets, to name a few. The key agent for these changes has been the Defence Acquisition Procedure 2020 (DAP 2020). It is however appropriate at this stage to assess the adequacy of these measures and identify what more can be done.

India's defence industrial base (DIB) remains weak despite decades of foreign equipment purchases. Countries like Turkey, South Korea, and Israel leveraged smaller procurements to develop robust defence ecosystems. India's lack of clear policy, accountability, and strategic coordination has resulted in over 65% dependence on imports. A Defence Industrial Ecosystem (DIE) is essential for self-reliance, integrating government, industry, R&D, and academia. Establishing an independent Defence Technology Commission (DTC) under the PMO, supported by an Inter-Ministerial Committee, can drive policy, innovation, and accountability. Transparent, well-structured policies, strategic global partnerships, and a competent workforce are critical for atmanirbharta in defence.

Engine overhauling is a comprehensive rebuild process conducted after a designated operational period to restore engine performance at a fraction of replacement costs. Unlike routine maintenance, overhauling involves complete disassembly, inspection, and refurbishment of components using new or reclaimed parts. Condition-based overhauling enhances cost-effectiveness by evaluating component wear before stripping. The overhaul process requires specialized technology, training, and documentation, differing from manufacturing methods. Quality control through rigorous testing ensures reliability. Post-overhaul feedback aids continuous improvement. This structured approach enhances engine longevity, reduces inventory complexity, and optimizes resource utilization, making it a vital practice in cost-efficient asset management.

Maintenance is not just an expense—it’s an investment that prevents financial losses, enhances safety, and extends asset lifespan. The Qantas A380 crisis highlighted how poor inspections led to a $100 million loss. Toyota’s predictive maintenance cut downtime by 30% and repair costs by 40%. London Underground’s proactive approach extended asset life and saved millions. Shell & BP’s corrosion monitoring prevented disasters and ensured compliance. Across industries, predictive and preventive maintenance reduces downtime, lowers costs, extends asset life, and enhances safety, proving that maintenance is essential for long-term success and efficiency.

India has declared 2025 as the Year of Defence Reforms, focusing on integrated theatre commands, self-reliance (SR), and acquisition reforms. Decades of reliance on foreign defence equipment have led to operational challenges, highlighting the need for a robust Defence Industrial Base (DIB). Challenges to SR include technological complexity, economic constraints, and bureaucratic hurdles. A reset in military-industry-DRDO collaboration is crucial for indigenization. Reforms should focus on indigenous capability building, defence industrial strategy, and long-term investments. A shift from assembly-based manufacturing to true self-reliance is necessary for sustained military effectiveness, operational independence, and strategic resilience against emerging threats.