819: STRATEGIC COST OF INCREMENTAL MILITARY MODERNISATION

 

Article published in the June 26 edition of the “Life of Soldier” Journal.

 

 

 

India stands at a strategic crossroads. The security environment around the country is becoming more volatile and technologically complex. China has transformed itself into a technologically advanced military power with integrated command structures, space capabilities, cyber warfare assets, and a rapidly expanding naval presence in the Indian Ocean. Pakistan continues to rely on asymmetric warfare while modernising selective military capabilities with external assistance. Beyond conventional threats, the future battlefield is increasingly shaped by artificial intelligence, autonomous systems, electronic warfare, drones, cyber-attacks, and information operations.

India’s approach to defence modernisation has been phased. Each of the previous wars (1962, 1965, 1971, and the Kargil war) has triggered reactive reforms and acquisitions. In future wars, India may not have time to correct deficiencies once the conflict begins. The prevailing environment necessitates military modernisation. Delay can result in strategic vulnerability. The real question is whether India can continue with incrementalism. The danger is the widening gap between the speed of emerging threats and the pace of Indian military adaptation.

 

Threats and Challenges

Warfare is shifting towards integrated domains. India will face a multidimensional threat landscape in future.  China’s military is undergoing a most consequential transformation over the last few decades. It is not simply acquiring more equipment, but fundamentally restructuring its doctrine, organisation, and technological base to fight and win multi-domain, network-centric conflicts at speed. Over the past few decades, Beijing has invested systematically in long-term capability building. It has reorganised command structures, accelerated indigenous defence production, invested heavily in modern technology, and created military civil fusion mechanisms.  The People’s Liberation Army is no longer merely a manpower heavy force. It is evolving into a networked military capable of coordinated operations across all domains. Besides the China challenge, India faces persistent tensions with Pakistan and growing maritime competition in the Indian Ocean Region.

For India, the challenge is further compounded by its geography and terrain. The country must prepare for high-altitude warfare in the Himalayas and maritime security in the Indian Ocean.  It also has to deal with the urban counterterrorism within its borders. Future conflict scenarios may involve simultaneous pressure along land borders, cyberattacks on critical infrastructure, disinformation campaigns, and economic coercion.

 

Slow Procurement Cycles

Incremental Military Modernisation. Incremental modernisation generally focuses on replacing legacy systems rather than redesigning military capability for future warfare. Buying a few squadrons of aircraft or upgrading selected artillery units cannot substitute for integrated transformation.  Incrementalism is not inherently wrong when resources are constrained, and industrial maturity is modest. However, it ceases to be prudent when it becomes a permanent default setting that systematically defers the harder choices. India must therefore recognise that procurement reform is not merely an administrative issue. It is a strategic imperative.

Indian Procurement System. One of the most persistent problems in India’s defence preparedness has been the prolonged procurement cycle. India’s procurement system has emerged from legitimate concerns over transparency, accountability, and financial scrutiny. Defence acquisition in India moves through the tedious process of approvals, technical evaluations, trials, negotiations, financial clearances, and bureaucratic reviews. It takes years or sometimes even decades. Fear of allegations, audit pressures, and political controversy has often discouraged timely decision-making. Bureaucratic caution has become embedded within the acquisition culture.

Strategic Consequences. Slow procurement cycles have strategic consequences: –

    •  Deterrence Weakening. Adversaries assess not only a nation’s current capabilities but also the speed at which it can adapt and replenish its military power. A country perceived as institutionally slow may invite coercive pressure.
    •  Cost Escalation. Deferred decisions result in increased costs due to Inflation and the need for technological upgrades. The evolving operational requirements further raise the acquisition costs over time. Resorting to emergency purchases is expensive.
    • Doctrinal Gaps. As long as procurement and force‑structure decisions move slowly, doctrinal thinking tends to lag behind technology. New concepts such as multi‑domain operations, joint convergence, and effects‑based targeting remain aspirational rather than institutionalised.
    • Loss of Confidence. Acquisition delays undermine confidence in indigenous systems. Services become reluctant to rely on them due to repeated delays. This creates a situation in which imports remain attractive and appear more capable and reliable.

 

Non-negotiable Imperatives.

Speedy Decision-Making as a Strategic Capability. Modern warfare rewards nations that can make decisions quickly under uncertainty. Strategic agility has become as important as military strength itself. Decision-making speed has a major impact on national security. It has a direct bearing on how quickly and efficiently threats are identified, forces mobilised, technologies integrated, and crises managed. India’s democratic process involves consultation, institutional checks, and political consensus-building. The challenge lies in ensuring that these processes do not become obstacles to strategic responsiveness. The issue is not merely about making faster purchases. It is about cultivating a strategic culture that is proactive, anticipates future challenges, and accepts calculated risk.

Indigenous Capability and Strategic Autonomy. The key to strategic autonomy is the building of indigenous capability. A country that depends on imports for critical defence systems is vulnerable in conflict. Relying on imports of parts, ammunition, sensors, or systems limits flexibility in a crisis. Recent global events have demonstrated that supply chains can be easily disrupted by geopolitical tensions, sanctions, or competing national priorities.

Self-reliance Challenge. The self-reliance challenge is very much both institutional and technological.  Institutionally, indigenous capability requires continuity of investment, realistic timelines, collaborative development, and stable operational requirements. The armed forces prioritise capability enhancement as they cannot compromise on operational readiness.  On the other hand, the industry requires sustained orders and predictable policy frameworks to build a long-term production plan. The challenge is to balance these imperatives.

Phased Capability Development. Abandoning indigenous development in favour of imports perpetuates dependence. At the same time, the minimum deterrence value cannot be compromised. The solution lies in phased capability development. Imports may be necessary in selected areas to fill in the urgent gaps. However, every foreign acquisition should strengthen domestic ecosystems through technology partnerships, local manufacturing, research collaboration, and supply chain development.

 

Recommendations.

Several priorities stand out: –

    • Speed needs to be embedded into the DNA of decision‑making. The approach of “risk‑avoidance‑through‑inaction” should be replaced by the culture of “action‑with‑risk”. National security decision-making requires deeper integration of technological expertise, geopolitical analysis, and long-term planning.
    • Procurement process must be re‑engineered for continuous capability enhancement flow rather than episodic projects. Instead of treating each acquisition as a discrete event, India should move toward a “production‑readiness” model, in which the industrial ecosystem is treated as a continuous provider of enhancements and variants.
    • Procurement systems must become faster, more transparent, and technologically adaptive. Acquisition processes should support iterative upgrades and modular capability development.
    • A more coherent indigenous‑capability strategy must be crafted. Accepting that not every system can be built domestically, prioritising critical technologies that underpin strategic autonomy, and investing heavily in test, evaluation, and certification infrastructure so that indigenous systems mature faster. It also means accepting that some indigenous platforms will initially under‑perform and planning for iterative upgrades rather than expecting a single “game‑changer” project to solve the problem.
    • Defence industrial policy must prioritise the creation of an effective ecosystem. Private industry, start-ups, academic institutions, and public-sector organisations must operate within integrated innovation frameworks.
    • Modernisation should be aligned with the actual threat environment. Military planning should focus on jointness and cross-domain integration.
    • India must invest consistently in emerging technologies. The countries that innovate faster, adapt quicker, and integrate technology more effectively will dominate future warfare.
    • Strategic ambitions require support from the budgetary allocations. Fiscal constraints will always exist. They need to be offset by smart spending, through prioritisation, indigenisation dividends, and public-private partnership models. Roll-over of multi-year funding commitments reduces uncertainty and enables production planning.

 

Concluding Thoughts

The cost of the military modernisation delay can’t be calculated solely from the percentage of ‘legacy’ equipment. It is characterised by a reduction in deterrence value, strategic options, operational readiness, and technological opportunities. Incremental modernisation may be viable in more sedate and favourable strategic conditions. It is unfeasible in the rapidly changing geopolitical environment and the speedy development of military technologies.

India cannot afford strategic complacency. The challenge before India is to modernise faster while building indigenous capabilities. India has the intellectual talent, industrial potential, and operational experience to achieve it. The question is not whether India can afford incremental modernisation, but whether it can afford the consequences of allowing strategic delays.

 

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References and credits

To all the online sites and channels.

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Disclaimer:

Information and data included in the blog are for educational & non-commercial purposes only and have been carefully adapted, excerpted, or edited from reliable and accurate sources. All copyrighted material belongs to the respective owners and is provided only for wider dissemination.

 

 

References

Bajwa, P. S., “India’s defence procurement: Challenges and the way forward”. United Service Institution of India. 2023.

Bitzinger, R. A. (2021). “Modernising China’s military: Problems, progress, and prospects”. RAND Corporation.

Cohen, S. P., & Dasgupta, S. (2010). “Arming without aiming: India’s military modernisation”. Brookings Institution Press.

Dahiya, R., & Behuria, A. K. (Eds.). (2012). “India’s neighbourhood: Challenges in the next two decades”. Institute for Defence Studies and Analyses.

Government of India, Ministry of Defence. (2023). “Defence acquisition procedure 2020 (amended)”. Department of Military Affairs.

Gupta, A. (2019). “Building an arsenal: The evolution of regional power force structures”. Praeger.

Kapila, S. (2021). India’s defence modernisation: Structural constraints and strategic imperatives. Journal of Defence Studies.

Khosla, A. (2024, November). “India’s aerospace modernisation: Challenges and imperatives”. Air Marshal’s Perspective. https://55nda.com/blogs/anil-khosla

Ladwig, W. C. (2020). “Indian military modernisation and conventional deterrence in South Asia”. Journal of Strategic Studies.

Sawhney, P., & Wahab, G. (2014). “Dragon on our doorstep: Managing China through military power”. Aleph Book Company.

Tatsumi, Y., & Weston, J. (2019). “Conventional deterrence in the second nuclear age”. Stimson Center.

785: HIGHLIGHTS & ANALYSIS: DEFENCE BUDGET 2026–27

 

Finance Minister Nirmala Sitharaman presented the Indian Defence Budget for the Financial Year 2026 on 27  February 1, 2026.

 

 

Overall Defence Allocation: A Record Increase

India’s defence spending for FY 2026–27 has been set at approximately ₹7.85 lakh crore, marking a roughly 15% increase over the previous year’s allocation (FY 2025–26: ₹6.81 lakh crore).

Defence remains one of the top-funded ministries in the budget, reflecting strategic priority. This is one of the largest-ever defence outlays in absolute terms.

Defence spending is now close to 1.99%–2.0% of India’s projected GDP, reversing the recent downtrend in the defence-to-GDP ratio.

Maintaining near-2% of GDP aligns India with many major powers and signals sustained political backing for defence preparedness.

 

 

Strategic Drivers Behind the Budget

The Budget is the first after Operation Sindoor.

Rising tensions with China and Pakistan, and an evolving security environment, have pressured India to enhance deterrence and capability.

 

Capital vs Revenue Expenditure: Modernisation Takes Priority

Capital allotment is ₹2.19 lakh crore, up around 22%.

Supports next-gen fighter jets, drones, submarines, and emergency arms post-Operation Sindoor.

Central allocations within this include ₹63,733 crore for aircraft & aero engines and ₹25,023 crore for strengthening the naval fleet.

Also, ₹0.29 lakh crore for DRDO (up from ₹0.27 lakh crore) and ₹0.07 lakh crore for Border Roads Organisation (BRO).

Emergency Procurements: Significant funds are earmarked to replenish stockpiles (ammunition, spares, and fuel) depleted during Operation Sindoor.

This shows a strong push to modernise armed forces, including fighter jets, aeroengines, naval platforms, and unmanned systems, all of which are vital to addressing future capability gaps.

 

 

Revenue Expenditure (Operations & Pensions)

Revenue expenditure (payroll, maintenance, operations) remains the bulk of the budget, including ₹1.71 lakh crore for pensions and other recurring costs.

Revenue Expenditure: 3.6546, 57% (20.17% for sustenance/ops + 26.40% for pay/allowances) ₹1.58 lakh crore for operations, maintenance, stores, and spares. Up 17.24% from FY 2025-26 BE, emphasising operational readiness.

Pensions: 1.712, 84% for over 34 lakh pensioners via SPARSH system. Up 6.56% from FY 2025-26 BE. Other (Civil Organisations, ECHS, etc.) 0.29 (approx.)3.64%Includes ₹0.12 lakh crore for Ex-Servicemen Contributory Health Scheme (ECHS), up 45.49% from FY 2025-26 BE and over 300% from FY 2021-22.

Agnipath Scheme: Allocation for the scheme surged by 51% (to ₹15,173 crore), signalling the maturing of the new HR model for the armed forces.

 

 

Boost to Self-Reliance (Atmanirbhar Bharat)

This budget reflects a strategic shift towards self-reliance (Aatmanirbhar Bharat), with 75% of capital acquisitions earmarked for domestic industries, including private sector involvement.

It also includes provisions for emergency procurements post-Operation Sindoor, enhanced R&D, and the development of border infrastructure.

Customs Duty Exemptions: Basic Customs Duty (BCD) is waived on raw materials and components imported for the manufacture and maintenance of aircraft parts, as well as for Maintenance, Repair, and Overhaul (MRO).

Impact: This is designed to lower input costs for Defence PSUs and private players, thereby turning India into a regional hub for aircraft maintenance.

The defence budget-linked allocation supports indigenous manufacturing and R&D.

DRDO & iDEX: The R&D budget increase supports next-gen tech like swarm drones, AI-enabled electronic warfare (EW), and hypersonic missiles.

The budget reinforces India’s technology and production push in semiconductors, deep-tech systems, and defence industrial corridors.

This dovetails with broader reform goals,  reducing import dependence while strengthening domestic defence firms.

 

Border Infrastructure (BRO)

Reflecting the tense multi-front reality (China, Pakistan, and Bangladesh), the Border Roads Organisation (BRO) saw its capital budget hiked to ₹7,394 crore. This will accelerate “last-mile connectivity” projects like the Shinku La tunnel and strategic airfields in Ladakh and Arunachal Pradesh.

 

Intelligence and Internal Security Buildup

The Intelligence Bureau (IB) received a 63% increase in funding, one of the most significant boosts for internal security.

This reflects recognition that modern defence is not just about external threats but also about internal threat management, cyber, intelligence, counter-terrorism, and hybrid warfare.

 

 

Analysis and Implications

The budget effectively balances immediate tactical needs (post-Op Sindoor replenishment) with long-term structural shifts (domestic MRO and 75% indigenous procurement).

This budget signals a proactive stance on national security, with the sharpest hikes in capital (21.84%) and revenue (17.24%) outpacing pensions (6.56%), indicating a pivot from legacy costs to future capabilities.

The emphasis on domestic procurement (75% of capital acquisitions) aligns with the Aatmanirbhar Bharat initiative, potentially boosting local industries, job creation, and ancillary sectors like aerospace and electronics.

Post-Operation Sindoor, allocations for emergency arms, drones, and border infrastructure (via BRO) address immediate threats from Pakistan. At the same time, long-term R&D investments (DRDO hike) aim to counter broader challenges from China.

Economically, the 2% GDP share remains below global peers like the US (3.5%) or Russia (4%), but the absolute increase to ~$86 billion positions India as a top (fourth-highest) global spender.

Overall, this allocation enhances India’s deterrence credibility, fosters innovation, and supports regional stability, though sustained execution will be key to realising these goals.

 

Strategic Takeaways

The most significant increase in defence spending in recent years

Focus on modernisation & capital acquisition.

Alignment with security imperatives post-Operation Sindoor

Growth of the domestic defence ecosystem & R&D push.

 

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780: ACHIEVING CONVERGENCE: AN INTEGRATED RESPONSE TO MULTI-DOMAIN HYBRID THREATS

 

Victory belongs to the side that converges fastest and most effectively.

 

  • Hybrid threats are the new normal: No clear distinction between peace and war—conflict today spans land, sea, air, cyber, space, and the cognitive/information domain.
  • Recent global and regional conflicts show that economic pressure, cyberattacks, disinformation, and proxy actors can be as decisive as kinetic force.
  • For India, the challenge is amplified by:
  • Long borders, contested domains, and grey-zone competition
  • Rapid digitisation and dependence on networks
  • Aatmanirbharta is not just about weapons—it’s about resilience across domains.

 

Multi-Domain Hybrid Threats

These threats exploit gaps between institutions, systems, and policies—not just military weaknesses.

  • Uniqueness of Multi-Domain Hybrid Threats:
  • Simultaneous use of military and non-military tools
  • Ambiguity in attribution and intent
  • Designed to stay below traditional thresholds of war
  • Domains involved:
  • Physical: land, maritime, air & space
  • Virtual: cyber
  • Cognitive: information warfare, perception management, narrative control

 

The Core Challenge: Lack of Convergence

Without convergence, even advanced systems remain reactive instead of proactive.

  • India has capabilities, but more often in silos:
    • Services more often operate in parallel
    • Civil-military-industry-academia linkages remain fragmented
  • Compatibility Issues: Using disparate foreign systems makes it difficult to “talk” to one another (interoperability).
  • Dependency Risks: Dependence on foreign Original Equipment Manufacturers (OEMs) for software updates or critical components creates a “kill switch” risk during a hybrid conflict.
  • Hybrid threats demand:
    • Speed of response
    • Shared situational awareness
    • Joint decision-making

 

Achieving Convergence

Convergence is not only jointness, but also the deliberate orchestration and synchronisation of capabilities across domains to create effects greater than the sum of parts, imposing multiple simultaneous dilemmas on the adversary.

  • Without convergence, the responses are fragmented, allowing the adversary to exploit seams between domains.
  • Convergence creates windows of advantage, collapses adversary decision cycles, and maintains superiority even against numerically/ technologically superior foes.

It is integration across four layers.

 

 Strategic & Institutional Convergence

  • Whole-of-government and whole-of-nation approach
  • Seamless coordination between:
    • Armed Forces
    • Intelligence agencies
    • Ministries, regulators, and strategic industries.
    • Indigenous ecosystems must align with national security priorities, not just commercial success.

 

Operational Convergence

  • True multi-domain operations:
    • Real-time data sharing across services and agencies
    • Common operational picture integrating sensors, platforms, and cyber inputs
  • Indigenous command-and-control, ISR, and decision-support systems are critical.

 

Technological Convergence

  • Indigenous development must focus on systems-of-systems, not standalone platforms.
  • Priority areas:
    • AI-enabled analytics
    • Cyber-secure networks
    • Space-based surveillance and communications
  • Avoiding vendor lock-in and foreign black boxes is a strategic imperative.

 

Cognitive & Information Convergence

  • Hybrid warfare targets public perception, morale, and trust.
  • Defence preparedness today includes cognitive security.
  • Indigenous capabilities in:
    • Information monitoring
    • Narrative analysis
    • Strategic communication

 

Role of Indigenous Defence Ecosystems

Indigenous ecosystem: It enables trusted integration across domains (critical for convergence).

  • Aatmanirbharta is not a luxury; it is a strategic necessity. It ensures:
  • Sovereign control over design, development, upgradation, and maintenance.
  • Rapid customisation to the Indian threat environment.
  • Uninterrupted supply in contested scenarios.
    • Assured availability during crises
    • Faster upgrades and adaptation
    • Security of data and algorithms
  • Indigenous ecosystems should be:
    • Collaborative, not service-specific
    • Dual-use, leveraging civil innovation (startups, academia, MSMEs)
  • Initiatives like iDEX and Make in India must evolve toward mission-oriented innovation, not isolated products.

 

Building an Integrated Response: The Way Forward

  • Move from platform-centric thinking to capability-centric planning
  • Encourage:
    • Joint problem statements from the Armed Forces
    • Early user involvement in indigenous R&D
  • Invest in:
  • Talent pipelines in cyber, AI, space, and EW
  • Indigenous C4ISR backbone: C4I2SR (Command, Control, Communications, Computers, Intelligence, Information, Surveillance, and Reconnaissance).
  • Data Fusion: Using AI/ML to process massive data from satellites, drones, and social media into actionable insights.
  • Cyber-Physical Security: Protecting critical infrastructure (grids, ports) alongside military hardware.
  • Electronic Warfare (EW): Developing indigenous jammers and decoy systems to blind adversary sensors. Indigenous testbeds and simulation environments
  • Space & counter-space capabilities: Indigenous satellites, ASAT, space domain awareness.
  • Cognitive/information domain mastery: Indigenous tools to counter disinformation, build narrative resilience.
  • Unmanned & autonomous systems: Swarm drones, UUVs, loitering munitions — all indigenously designed for multi-domain synergy.
  • Cultivate the Ecosystem
  • Plug-and-Play Architecture: Encourage the development of “Open Standards” so a startup’s AI algorithm can easily integrate with a major defence platform.
  • Civil-Military Fusion: Leverage India’s private sector IT prowess to build defensive cyber-moats.
  • Testing and Iteration: Create “Sandboxes” where indigenous tech can be tested against simulated hybrid threats in real-time.
  • Prioritise indigenous tech in acquisition.
  • Invest heavily in R&D ecosystems: Deep tech fund, long-term loans, tax incentives for startups.
  • Build resilience & redundancy: Multiple indigenous sources for critical components.
  • Foster international partnerships: Only where they complement (not substitute) indigenous capability.
  • Measure success not by import substitution alone, but by operational effectiveness in contested, multi-domain scenarios.

 

Closing Thought

  • Hybrid threats are designed to exploit disunity and delay.
  • Convergence is the force multiplier, and Aatmanirbharta is the necessary enabler.
  • Building indigenous defence capability is ultimately about: Ensuring India can think, decide, and act independently across all domains—at the speed of modern conflict.

 

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