India’s Defence Modernization and the Pursuit of Technological Autarky: Policy Reforms, Persistent Gaps, and Strategic Pathways

Abstract

India’s defence sector is undergoing a profound strategic transformation driven by the ambition to achieve self-sufficiency (autarky) in arms development, which is a cornerstone of its pursuit of great power status. This imperative is rooted in the doctrine of techno-nationalism and the need to deter ongoing security threats. Historically characterized by deficiencies and heavy reliance on imports, the strategic policy shift toward Atmanirbhar Bharat (Self-reliant India) has led to demonstrable successes. Indigenous defence production achieved a historic high of ₹1.27 lakh crore in 2023-24, and defence exports surged significantly, reaching ₹23,622 crore in 2024-25. Nonetheless, modernization efforts are hindered by critical technological gaps in core areas, such as propulsion and advanced electronics, as well as an insufficient financial commitment to Research and Development (R&D), which currently accounts for around 4% of the defence budget. The continued dependence on external sources for highly technical subsystems creates an "autarky gap". Achieving genuine autonomy requires escalating R&D spending to a recommended 8-10% of the total defence budget, implementing structural R&D reforms (such as creating a Department of Defence Science, Technology, and Innovation-DSTI), and institutionalizing the proactive, in-house design and integrated acquisition model successfully pioneered by the Indian Navy.