By Nantoo Banerjee
There is little to be excited about the defence ministry’s latest clearance for the acquisition of 114 Rafale fighter jets from France at a huge cost of Rs.3.25 lakh crore (nearly $40 billion), branded as ‘mother of all defence deals’. It is a matter of major concern that even 78 years after the country’s independence, India, like Ukraine, has to rely on imported arms to defend its sovereignty – Rafale from France, Poseidon jets from the US, and S-400 Triumf from Russia among several others. Even in areas where India is manufacturing defence equipment with foreign collaborations, the country remains highly dependent on overseas subsystems.
While the platform such as aircraft and ships might be assembled in India, critical high-end components are still imported making the supply chain vulnerable. Over the years, India has made multiple Rafale deals. They include 36 jets worth around €7.87 billion (Rs.58,891 Crore) and a more recent one for 26 naval variants for the Indian Navy costing Rs.64,000 crore. India cancelled a deal to buy 126 Rafale fighters from France in 2015 after years of negotiations over quality assurance issues with Indian-manufactured jets.
In 1950, neighbouring China’s economy and defence were much weaker than India’s. Today, China boasts itself as one of the world’s most self-propelled lethal military powers, after the US and Russia. Thanks to India’s import happy political rulers, the country continues to face major gaps in developing advanced military technology, specifically jet engines, active electronically scanned array (AESA) radars, missile seekers, and stealth technology. India’s defence R&D spending is abysmally low compared to peers, with the DRDO receiving only 3.94 percent of the total defence budget in 2025-26.
Lengthy procurement cycles and inordinate delays in R&D projects have been hampering modernization. The LCA Tejas program took over two decades from approval to prototype. The programme was initiated as early as in 1984 to develop indigenous, lightweight, multirole fighter jets to replace MiG-21 fleet. India also lacks sufficient, world-class testing infrastructure for advanced technology like UAVs, electronic warfare, and electro-optics slowing down the development and certification of indigenous products.
With about 80 percent of India’s defence equipment being of Russian origin, Russia remains a cornerstone of the country’s defence capabilities. Russia came into the picture when western military powers practically refused to supply high-end arms to India. The Indo-Russian defence partnership spans, evolving from a pure buyer-seller relationship to joint development and production. Major lethal Russian platforms in India include Sukhoi Su-30MKI (made in India with Russian help), T-905 “Bhishma” and T-22 main battle tanks, BrahMos cruise missile, Russian origin submarines, including leased nuclear-powered vessels (Akula-II), and aircraft carriers like INS Vikramaditya and widely used Mi-17 transport helicopters.
For a long time, India did not allow its private sector in defence production although it was always happy to deal with foreign private enterprises for import of arms and ammunition. Incidentally, Dassault Aviation is primarily owned by a French family holding company, the Groupe Industriel Marcel Dassault (GIMD). The company is tightly controlled by the family, holding nearly 67 percent of the equity shares. Airbus holds around 10 percent. The private sector participation in defence manufacturing in India accounted for only 23 percent of total output in 2024-25, mostly low-end products. Lack of sufficient, world-class testing infrastructure for advanced technology like UAVs, electronic warfare, and electro-optics slows down the development and certification of indigenous products.
Initially, China too was dependent on Russian defence supplies. But, the communist regime provided a high priority to self-sufficiency in defence production and, over the years, became a major worldwide contender for high-end manufacturing of defence products. China’s transition from a low-tech arms importer to a high-end, indigenous defence manufacturer and exporter has been driven by a long-term, state-led strategy combining massive investments in research and development, intense military-civil fusion (MCF), and targeted acquisition of foreign technology. Over the last decade, China has emerged as the world’s third-largest arms exporter, with capabilities in stealth fighters (J-20, J-35), aircraft carriers (Fujian), and hypersonic missiles that challenge Western technological superiority.
A cornerstone of the reform, the Chinese strategy eliminated barriers between civilian and military sectors, allowing the People’s Liberation Army (PLA) to tap into the fast-paced innovation of the country’s massive commercial tech sector, particularly in artificial intelligence (AI), unmanned systems, and quantum technology. China invests billions in R&D, accounting for roughly 20 percent of global R&D spending, which has fuelled the development of homegrown, advanced weapons. Although China originally relied on Russia for advanced systems, it had systematically used reverse-engineering on imported gear (like Su-27 fighters) and engaged in cyber-espionage to acquire blueprints for advanced technologies, such as the F-35 and C-17. Beijing had successfully lured many talented engineers and scientists back from the US and Europe to strengthen its domestic defence industry.
Based on Stockholm International Peace Research Institute (SIPRI) data regarding global arms transfers, export volumes, and the development of advanced military technology, the top 10 countries producing high-end defence equipment (2020–2024) are dominated by major powers investing heavily in aerospace, naval, and missile technologies. The countries are: the United States, France, Russia, China, Germany, Italy, the United Kingdom, Israel, Spain and South Korea. Of them, the emergence of China, tiny Israel and South Korea as major high-end military manufacturers in the last few decades shows that with strong will any country can become a defence production major. Israel is a leader in high-tech military machines, focusing on air defence systems (Iron Dome), Unmanned Aerial Vehicles (UAVs), and advanced electronics/cyber warfare. South Korea has become a rapidly emerging exporter of high-end equipment, including K2 tanks, FA-50 aircraft, and K9 self-propelled howitzers.
However, India continues to remain heavily foreign nirbhar (dependent) to protect its borders against highly belligerent neighbours such as China and Pakistan. Despite the so-called push for indigenization, India remains substantially dependent on foreign suppliers for advanced weaponry for critical tech, jets, and electronics to counter twin threats from China and Pakistan. This dependency persists alongside border disputes, cross-border terrorism, and a volatile neighbourhood. While tension on the 3,488 km India-China border (LAC) has been persisting for years, the cross-border terrorism from Pakistan requires constant readiness. It is time that India invests big in high-end domestic defence manufacturing to protect its borders. Bridging the gap in high-end military tech poses a real challenge for the country now. (IPA Service)
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