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Operation Sindoor Impact: MoD Streamlines Defence Buys, Boosts Make in India

Post-Operation Sindoor, the Defence Ministry is radically overhauling procurement – replacing years-long trials with simulations to accelerate military readiness. This shift prioritizes domestic industry and urgent capability gaps.


Key Reforms & Rationale
The Simulation Revolution
Problem: Traditional field trials take 2+ years (e.g., tank/ammunition testing)
Solution: Digital simulations enable:
Real-time weapon system validation
70% faster evaluation cycles
Cost savings on live ammunition/exercises
Governing Policy: Defence Acquisition Procedure (DAP) 2020


Operational Urgency
Post-Sindoor focus on critical needs:
Anti-drone systems
Smart ammunition
Modular armored vehicles
Fast-tracked vendor negotiations and payments
 

“Make in India” Acceleration
Private Sector Incentives
Priority to domestic manufacturers for:
Loitering munitions
Interoperable systems (army-navy-air force compatibility)
Faster clearance of vendor payments to boost cash flow


Capex & Budget Realities
FY25 Allocation: ₹1.8L crore capital outlay
Spending Challenge: Only 2% (₹4,384cr) utilized by April 2025
MoD-MoF Consensus: No major budget hike despite reforms
 

Why This Matters
Strategic Impact
Addresses China-Pakistan threat dynamics
Closes critical tech gaps (e.g., drone warfare)
Enhances military readiness post-Sindoor
Systemic Challenges
Defence spending at 1.91% of GDP (below 2% strategic target)
Geopolitical hurdles in global procurement
 

Exam-Focused Insights
Defence Acquisition Procedure 2020
Promotes “Make in India” via:
Indigenous design incentives
Offset clause revisions
Priority to Indian-IDDM (Indigenously Designed, Developed, Manufactured) category
 

Sample Q&A for Exams
Q1: What procurement reform did MoD propose post-Operation Sindoor?
A: Replacing field trials with digital simulations under DAP 2020.
Q2: Name two equipment priorities in MoD’s fast-tracked procurement.
A: Anti-drone systems and smart ammunition.
Q3: What is India’s current defence expenditure as % of GDP (FY25)?
A: 1.91% – below the recommended 2% threshold.
Q4: How does DAP 2020 promote “Make in India”?
A: Through Indian-IDDM category incentives and revised offset policies.
Q5: What was MoD’s capital expenditure utilization by April 2025?
A: ₹4,384 crore (2% of annual allocation).

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