Over the next decade, the Indian Army is setting a course for a major transformation, focusing on enhancing its operational capabilities and embracing new technologies. As part of this vision, the Army is investing heavily in modernising its equipment, ensuring the longevity of its assets, and building critical infrastructure.
These efforts are being driven by a commitment to self-reliance, in line with the national policy of Aatmanirbharta. Through strategic financial reforms, digital innovation, and a push for domestic production, the Army aims to strengthen its operational readiness while minimizing reliance on foreign imports.
Building a Self-Reliant Defence Ecosystem
A significant portion of the Army’s capital budget has been directed toward acquiring cutting-edge technology domestically. As per official sources, the Army has established partnerships with Defence Public Sector Undertakings (DPSUs), private industries, and start-ups to boost innovation in defence production. This shift has dramatically reduced foreign procurements, furthering India’s vision of self-reliance in defence. The efforts have already begun to show results, with India’s defence ecosystem gaining strength year by year.
The Government-e-Marketplace (GeM), introduced under GFR 2017, has emerged as a vital tool for streamlining the procurement process. The Indian Army has rapidly adopted GeM, increasing its procurement from Rs 21 Cr in 2017 to over Rs 15,433 Cr in FY 2023-24. According to sources, this digital procurement shift has enhanced transparency and price discovery, ensuring that military purchases meet both efficiency and budgetary standards.
Sustaining and Enhancing Operational Readiness
In addition to acquiring new technology, the Army remains focused on sustaining its existing equipment. The capital expenditure program has allocated substantial funds for upgrading, maintaining, and refurbishing assets to ensure their long-term effectiveness. Commanders have been empowered with delegated procurement powers through Operation Capital Procurement Powers (OCPP), allowing them to address field needs swiftly. According to military officials, this shift is aimed at improving operational readiness by ensuring timely procurement and resource allocation.
The introduction of the Command Budget Management (CBM) system has also played a crucial role. The CBM system enables field commanders to flexibly allocate resources based on immediate operational demands. This financial empowerment has significantly enhanced the Army’s ability to prioritize funding for crucial areas such as technology absorption and research, ensuring a future-ready force.
Infrastructure Expansion for Operational Efficiency
Sources indicate that a major focus of the Indian Army’s capital expenditure has been the expansion and modernization of infrastructure. By identifying and addressing key bottlenecks, the Army has laid the groundwork for the development of new operational and administrative facilities. These upgrades are expected to improve the efficiency of military operations, ensuring that the Army is well-prepared to meet future challenges.
Advancing Financial Automation and Transparency
The Indian Army has also adopted financial automation to streamline budgeting and enhance transparency. According to reports, the Indian Army Financial Information System (IAFIS) is set to fully integrate financial operations by partnering with platforms like the Public Financial Management System (PFMS) and GeM. This initiative, along with the widespread use of competitive bidding (accounting for 80% of procurement), has led to significant savings for the state exchequer and improved transparency in defence expenditure.