Defence reforms 2.0 for Modi 3.0
Business Standard|July 19, 2024
Modi 2.0 brought transformative defence reforms, many of which were pending for decades, revitalising the armed forces.
AJAY KUMAR

As this government begins its third term, sustaining and expanding these reforms is essential to further strengthen India's military capabilities.

In January 2020, the Prime Minister bit the bullet and established the Chief of Defence Staff (CDS) position and formed the Department of Military Affairs (DMA), with the CDS as its secretary. This reform initiated the process of jointness among the three services, integrating them with the ministry's decision-making process. Recently, Parliament also passed an Act providing statutory backing to the CDS. Four and half years later, the report card shows progress in areas like training and logistics. However, the crucial goal of creating Theatre Commands is still on the drawing board. Modi 3.0 must complete this challenging unfinished task and initiate transition to a blue-water navy.

Successful reforms in the defence industry ecosystem were a major highlight of Modi 2.0. These reforms included increased participation by private industry and startups, enhanced transparency, opening testing and certification infrastructure to the private sector, and a greater willingness by the military to use indigenous equipment. Two game-changing policy decisions were earmarking 75 per cent of the capital acquisition budget for domestic industry and banning imports of items on the positive indigenisation lists. Innovation in Defence Excellence (iDEX) galvanised thousands of startups, with several creating world-class technologies. Defence exports grew 15-fold from ₹1,400 crore in 2017-18 to 21,000 crore in 2023-24.

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