India’s defence transformation is not optional; it is existential: Yezdi Nagporewalla

AS INDIA APPROACHES 100 years of Independence in 2047, we must ask: how sovereign are our defence capabilities? In a world where supply chain disruptions, cyber warfare, and grey-zone threats define modern conflict, India’s defence transformation is not optional; it is existential. Recent progress, strategic dialogues, rising exports, and large-scale procurement are evident. But are we moving fast and boldly enough to lead? Our defence manufacturing aspirations, encapsulated in the vision of Atmanirbhar, Agrani, and Atulya Bharat 2047 (a KPMG–CII report), are rooted in a clear understanding that strategic autonomy begins with domestic capability. India’s focus on building a strong, self-reliant defence base has gained significant momentum. Policies like Defence Acquisition Procedure (DAP) 2020 and reserving 75% of capital procurement for domestic sources have laid the foundation for increased indigenous production. Yet, the journey towards full-spectrum self-reliance is far from complete. Reliance on imports for systems like propulsion and avionics makes it imperative to scale domestic R&D to 10-15% of total defence spend. It is only through R&D that we can ensure that long-term capability development is both resilient and scalable. India has made remarkable strides in defence exports, growing nearly 30-fold over the past decade and we aim to rise from 28th to the Top 5 arms exporters by 2038 and for this India must ensure quality compliance, global certification, and strategic branding. This is not just an economic objective but about positioning India as a trusted and credible contributor to global peace and stability. Equally important is India’s embrace of cutting-edge technologies that are redefining global defence frontiers. Artificial Intelligence (AI) is driving faster and more accurate decision-making in command centres, while advanced materials such as meta-alloys and graphene composites are making weapon systems lighter and more resilient. Electronic warfare systems, including cyber-resilient radars and spectrum-dominant platforms, are becoming indispensable to protecting Indian assets in hostile environments. By investing in these technologies, India can leapfrog legacy constraints and shape a new paradigm of deterrence and defence dominance. The proposed National Defence Technology and Innovation Framework (NDTIF), if established with strong inter-institutional governance, can anchor India’s technological leap. It can drive breakthroughs in emerging domains such as semiconductors, electronic warfare and AI applications in intelligence, surveillance, and reconnaissance, which are increasingly shaping modern battlefield awareness and response cycles. The private sector must now ask itself a different question: not “how can we compete for contracts?” but “how can we co-create a strategic capacity for the nation?” The answer lies in deeper, longer-term investments in capability building. Corporates must shift from transactional roles to becoming strategic enablers — investing in dual-use infrastructure, co-developing IP with research bodies, and funding high-risk innovation. It means building integrated supply chains, mentoring start-ups, investing in R&D and advancing future-ready talent. Resilient and reliable As India sharpens its defence industrial capabilities, we must frame our ambitions not only in domestic terms, but as part of a larger global realignment. The evolving geopolitical architecture in the Indo-Pacific, the resurgence of great-power competition, and the shifting security calculus across the Global South have created a timely opening for India to lead. As alliances like the Quad deepen defence consultations and blocs like I2U2 [India, Israel, the U.A.E, and the U.S.] expand technological co-operation, India’s ability to deliver dependable, multi-domain platforms and resilient supply chains will define its strategic value. By 2047, Indian-built systems should be a global badge of reliability and strength. A vibrant, export-oriented defence sector can be the bridge that links strategic alignment with the West and solidarity with the developing world. The roadmap to 2047 is laid out, but intent alone is insufficient. Defence procurement must now be governed by timelines, accountability, and delivery. Short-term action must build the base; medium-term initiatives should consolidate gains. A self-reliant India needs collective commitment — from the government, military, industry, and academia. To turn ambition into action, India must institutionalise NDTIF, with clearly defined timelines and collaborative leadership. By 2032, defence R&D funding should scale to 10-15% of total expenditure, driven by robust private-sector participation. Procurement processes must adopt Quality-cum-Cost-Based Selection (QCBS) to prioritise long-term value over lowest-cost criteria. According to the KPMG–CII report, India’s defence spending as a share of GDP is projected to increase from 2% to 4-5% by 2047, reflecting the nation’s strategic intent to enhance self-reliance and global competitiveness. Concurrently, it is essential to foster dual-use innovation hubs, promote joint intellectual property development with academia and DRDO, expand export-ready defence corridors, and launch a targeted talent repatriation and upskilling mission — key steps towards building a future-ready defence ecosystem. Now is the time to act with clarity. The world is watching. Let us lead with consistent action, not just ambition. (Views are personal. Yezdi Nagporewalla is the Chief Executive Officer, KPMG in India) Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.

India’s defence transformation is not optional; it is existential: Yezdi Nagporewalla

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