Defence
An Interaction with Dr. G. Satheesh Reddy on India’s Defence Transformation
13 November 2025
By:
Sandeep Maheshwari
Senior Fund Manager
360 ONE Asset
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Read time - 5mins

India is undergoing one of its most significant defence transformations in decades.

What are the key reforms reshaping India’s defence architecture today, and why is this an especially pivotal moment given the evolving regional and global security landscape?

I see the ongoing transformations as foundational to our national security. India's defence architecture is undergoing profound reforms and the year 2025 has been declared as the 'Year of Reforms' to drive jointness, integration, and technological edge.

Key initiatives include establishing integrated theatre commands for unified operations, adopting AI, robotics, cyber, and hypersonic technologies, and the Technology Perspective and Capability Roadmap (TPCR-2025) outlining 300+ projects for self-reliance over 15 years. On the policies and procedures aspect, the ongoing revisions for DAP 2020 and the revised DPM 2025 with the intent to make them more industry friendly, coupled with relaxations in licencing regulations and other such approval processes is a reflection of how receptive the policy makers are to the demands of the industry and the changing times. The defence budget has surged to ₹6.81 lakh crore, enabling capability upgrades and indigenous manufacturing. This evolution is pivotal with escalating regional threats demanding agile, multi-domain forces to deter aggression, project power, and secure supply chains.

These reforms enable India to pivot from a buyer to a maker, enhancing deterrence and strategic autonomy in a multipolar world fraught with hybrid threats. Operationally, we're also accelerating joint exercises and investing in dual-use technologies to build resilience against asymmetric warfare. Given the depth of the industry today and capabilities and capacities planned for future, and the plans of the Government towards interventions and investments in infrastructure, now is the right time for India to work towards crystallizing the efforts of the past decade. Given the evolving regional and global security landscape as well as the fast changing technology architecture, it is imperative for all stakeholders in the country to work towards strengthening the ecosystem. The India industry today is primed for making the best out of this opportunity as we journey towards a Viksit Bharat.

Modernisation with self-reliance has become a central strategic priority.

How is India balancing rapid military modernisation with the goal of building an Atmanirbhar and globally competitive defence industrial base?

India's defence strategy masterfully balances rapid modernisation with Atmanirbhar Bharat's ethos. We're procuring advanced platforms like the indigenous BrahMos missiles, Tejas LCA aircraft and also creating ecosystems indigenously to be able to supply for global platforms and equipment.

The Atmanirbhar initiative, backed by a fast-growing capital budget with significant allocations for domestic indigenous procurement, has been driving large scale programs like AMCA, LCA Tejas etc. Parallelly, to build a globally competitive industrial base, Defence Corridors in Uttar Pradesh and Tamil Nadu have been planned and another two in Maharashtra and Assam have also been announced. Over and above that, almost every state in India today has A&D as a focus sector and hubs / clusters / industrial parks are being developed to specifically focus on this industry. Operationally, this involves streamlined testing via DRDO and fast-track acquisitions under DAP 2020. The intent is clear: reduce import dependency to ensure strategic autonomy and supply chain security amid global disruptions. This dual approach not only modernises our forces and continuously increases domestic production but also positions India as an exporter.

This dual approach builds a globally competitive base, cuts vulnerabilities, boosts economy via exports, and positions India as a net security provider—critical for strategic reckoning in asymmetric threats.

Warfare is expanding beyond traditional battlefields.

How is India preparing for new-age domains such as cyber, space, AI, and autonomous systems—and how can these be best integrated across our armed forces?

India is proactively adapting to multi-domain warfare by establishing a unified command structure and integrating emerging technologies for autonomous systems and intelligence. The Defence Cyber Agency counters escalating cyber threats, with hundreds of incidents thwarted annually, while the Defence Space Agency advances satellite reconnaissance and anti-satellite capabilities via Mission Shakti. AI integration is also evident in unmanned systems including swarm drones, where autonomous sytems are being embedded to be integrated across forces with the inclusion of predictive analytics. The strategic intent is to achieve information dominance and deterring adversaries in hybrid conflicts. Operationally, this requires unified command structures, cross-service data sharing via secure networks, and supporting infrastructure to seamlessly connect the dots.

With dedicated fundings for R&D in legacy and emerging technologies (both at a central level as well as at the level of many states in the country) and an increasing defence budget, the military shifts to AI-enabled forces deploying drones, quantum tech, and cyber defences via data architectures is reflective of the changing times and how the forces are aligning with the future. Advancement of space capabilities through NASA-ISRO collaborations and Artemis Accords for satellite networks also indicate that the domain of space is being leveraged to the fullest extent for integrating systems across all aspects.

Technology and manufacturing are becoming increasingly core to strategic readiness.

How is India fostering indigenous R&D, industry–academia collaboration, and accelerated procurement mechanisms to spur innovation and reduce external dependencies?

India's strategic readiness and strategic autonomy hinges on indigenous R&D and manufacturing to minimize supply chain and geopolitical vulnerabilities. The country is today preparing itself for future disruptions by enhancing R&D capabilities and capacities on mission mode across the country - funding projects like hypersonic missiles and quantum computing.

Industry-academia ties are being strengthened via schemes and initiatives like iDEX and TDF, linking startups with IITs and IISc for co-development, yielding innovations like anti-drone systems. Accelerated procurement timelines are being planned to ensure minimal time between a requirement generation and solution delivery. Operationally as well, fostering indigenous R&D and accelerated procurement mechanisms involves agile contracting, IP protection, and supply chain audits to cut foreign dependencies. The intent is unequivocal transform India into a defence innovation and manufacturing hub.

The private sector and startups are now playing a much larger role.

With initiatives like iDEX, TDF, Defence Corridors, and joint development programmes, how has public–private partnership influenced innovation, exports, and capability building—and what more is needed to scale private participation effectively?

Public-private partnerships have revolutionized India's defence landscape, injecting agility and innovation. Today the industry has a very rich mix of experience, youth, agility and innovation.

Public-private partnerships (PPPs) through iDEX, TDF, Defence Corridors, and joint programmes have profoundly influenced India's defence sector by 2025. iDEX has launched over 500 challenges, engaging 600+ startups and MSMEs, resulting in more than 350 contracts and accelerating innovations in drones, AI, and stealth tech. TDF, on its part, has enabled funding to more than 75 projects till date at a cost of more than INR 300cr. The above together have contributed to the more than 2x times increase in indigenous production in the last decade while exports have increased almost 15x times in the same period, thereby enhancing global competitiveness and capability building via supply chain integration. Strategically, PPPs foster self-reliance amid regional threats; operationally, they expedite procurement and tech transfer.

To scale private participation effectively, it is important for us as a country to address challenges like bureaucratic delays and technology gaps by streamlining regulations, boosting incentives for MSMEs, enhancing risk-sharing funds, and promoting vendor development guidelines.

We are seeing a new generation of defence and space entrepreneurs emerge.

When you interact with founders in this ecosystem, what qualities or approaches stand out in the best teams, and how do you see the Indian defence & space tech startup landscape evolving over the next 3–5 years?

Interacting with founders in India's defence and space ecosystem, the standout qualities are resilience amid regulatory hurdles, deep domain expertise in areas like propulsion or cybersecurity, and a mission-driven mindset focused on national security over quick profits. The top-most teams exhibit agile iteration, strong IP strategies, and collaborative networks and DRDO or ISRO veterans have always been guiding forces for most of them.

Over the next 3-5 years, I believe the landscape will explode and I expect to see many more companies emerging in hypersonics and counter-drone tech. We need more accelerator programs, easier access to test beds, and talent pipelines from STEM universities. The intent is to nurture a vibrant ecosystem rivaling Israel's, driving India's ascent as a defence tech powerhouse.

It is important that more and more founders leverage government support for scaling strategically, thereby positioning India as an innovation hub.

Looking ahead to the next decade.

If you were to define a bold vision for India’s defence and space capability in the next 10 years—what would success look like, and what are the critical steps required to get there?

My vision for India's defence and space capabilities in the next decade includes us becoming a self-reliant global leader, with indigenous platforms comprising 80% of arsenal and space assets rivalling superpowers.

Critical steps towards this target would include continuous R&D investments, a National Security Strategy for seamless collaborations, and forging alliances, a manufacturing ecosystem with no strategic supply chain risks.

With unwavering intent, we have the capabilities and capacities to transform vulnerabilities into strengths, ensuring sovereignty in an era of great power competition.

By 2035, success envisions India amongst the top defence technology enabled countries with fully indigenous capabilities in Viksit Bharat.

Original Article :
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