Podcast

India's Defense Industry: The State of Play

by Saheb Singh Chadha and P.R. Shankar
Published on March 27, 2025

Episode Summary

In this episode of Interpreting India, P. R. Shankar joins host Saheb Singh Chadha to unpack the state of India’s defense industry. While India has made gains in modernizing its military and expanding domestic defense production, challenges persist, for example, in research and development, and procurement. Gen. Shankar also provided recommendations that would allow India to reduce its imports, diversify dependence, and export indigenous systems.

Episode Notes

P. R. Shankar outlines the evolution of India’s defense industry and how it is nurturing a growing ecosystem of indigenous production. He highlights that India’s armed forces have always been adequately equipped for national defense, the key question being whether it can develop a defence industry that would enable it to act as a regional power.

The discussion explores the historical structure of India’s defence sector, traditionally dominated by public sector organizations such as the Defence Research and Development Organisation (DRDO). It traces the gradual but significant entry of private players into the defence industry, marking a shift towards a more diversified and dynamic ecosystem. Gen. Shankar emphasizes that meaningful reform in procurement processes does not necessarily require more rules; rather clarity of intent, domain expertise, and better coordination among the armed forces, bureaucracy, political leadership, and industry. A key highlight of the episode is the artillery modernization program, which serves as a successful case study of long-term strategic planning and sustained execution, offering valuable lessons for other sectors and weapon systems. The conversation also delves into the relevance of international defense partnerships for deeper co-development and interoperability. Finally, broader reforms such as the introduction of positive indigenization lists, a more robust export policy, and the inclusion of startups and academic institutions like the Indian Institutes of Technology, are seen as critical to strengthening India’s defense industry. 

Episode Contributors

P.R. Shankar is the former Director General of Artillery in the Indian Army and currently a professor in the Aerospace Department at IIT Madras. He has played a key role in India’s artillery modernization and frequently writes on strategic and defense issues. He also runs a YouTube channel, Gunner’s Shot, focusing on defense and geopolitical affairs.

Saheb Singh Chadha is a senior research analyst in the Security Studies Program at Carnegie India. His research focuses on China’s foreign and security policies, India-China relations, and India’s military modernization. He is broadly interested in the geopolitics of South Asia and the Indo-Pacific. He is also a researcher on a project examining the nature and dynamics of cross-border violence and its impact on civilian communities.

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.