Emphasising the need for deeper industry integration, the Indian Army called for viewing defence manufacturers as long-term strategic partners rather than mere vendors. “We are not looking for vendors, but for partners who stand by us in peace and war,” said Lt. Gen. Amardeep Singh Aujla, Master General Sustenance (MGS), Indian Army, at an industry interaction on “Revenue Requirements of Indian Army: Opportunities for Indian Defence Industry” held at PHD House.
Highlighting the importance of a resilient and tech-enabled logistics ecosystem, Lt. Gen. Aujla said the Army is working to streamline design, R&D, manufacturing, distribution, and transportation under a unified structure. With Rs 25,000–30,000 crore spent annually on revenue procurement, the Army is seeking smart, sustainable solutions that enhance operational readiness.
“Revenue procurement drives the Army’s pulse,” he noted, stressing that future warfare demands next-gen technology, agile supply chains, and robust manufacturing capacities. “Ammunition has revolutionised warfare, but investments in next-gen munitions remain minimal. We need rapid, customised solutions through proactive R&D.”
He underscored the need for convergence across four pillars: user requirements, R&D, manufacturing, and policy. “Policies, including the Defence Procurement Manual (DPM), must align with industry realities to support indigenisation.”
From the industry side, Rudra Shriram, Chair, PHDCCI Defence President, DCM Shriram Industries, said the focus on revenue procurement marks a strategic shift. “It’s the backbone of operational sustenance. Indian MSMEs, Tier 1 and Tier 2 suppliers have a crucial role in maintaining and supporting our forces.”
Vaibhav Gupta, Co-Chair of PHDCCI Defence and Director, MKU Ltd., pointed out the hurdles private players face. Despite a 2021 draft revision, the DPM still favours DPSUs through nomination-based sourcing and an inflexible L1 regime. “Unless private industry is treated on par with DPSUs, the vision of Make in India and Strategic Partnerships will remain incomplete.”
Gupta proposed a multi-pronged reform strategy, including simplified paperwork, faster approvals for emerging tech, vendor support cells, and dedicated MSME procurement channels. He also called for early consultations before tenders and a fund to pilot innovative solutions like AI-based maintenance systems.
The session reinforced the mutual recognition that India’s defence preparedness hinges not just on capital acquisitions but on sustained, responsive, and inclusive revenue procurement that empowers domestic industry.
Team BharatShakti
