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The Wire
3 days ago
- Business
- The Wire
India's Military Jugaad: From Battlefield Fix to Export Opportunity
As India pushes to expand defence exports, it should also market a less publicised strength: the military's unmatched jugaad – its ability to improvise cost-effective, adaptable fixes to upgrade and sustain a wide array of equipment. For militaries that can't afford cutting-edge Western systems, India's -driven approach offers a distinct niche: reasonably priced, battle-tested, resource-efficient alternatives to meet operational needs. Veterans and defence analysts argue that India's knack for stretching limited budgets to deliver battlefield capability is highly exportable – especially to developing nations with similar constraints. There is growing interest in refurbished air defence systems, upgraded Soviet-era platforms, and low-cost ISR (intelligence, surveillance, reconnaissance) solutions that blend components from diverse sources. India's experience with retrofitting legacy platforms offers a viable model Many militaries across Africa, Latin America, Central Asia, and Southeast Asia face the same problems that shaped India's jugaad ethos: tight budgets, aging inventories, unreliable supply chains, and politically fraught procurement. These countries are not necessarily looking for next-gen weapons – but for maintainable, effective systems that won't strain their defence budgets. India's experience with retrofitting legacy platforms like the 1960s-era MiG-21 'Bis', modularising battlefield electronics, developing simulators, and integrating Israeli, French, Russian, and indigenous systems offers a viable model. Military technicians from the armed forces, Defence Public Sector Undertakings (DPSUs), and DRDO have extended the life of Cold War-era Soviet air defence systems, which performed effectively during last month's Operation Sindoor alongside modern platforms. Indigenous systems like the Pinaka multi-barrel rocket launcher, the Dhanush 155mm/45-calibre howitzer, and the ALH Rudra helicopter embody the mindset – melding domestic engineering with imported subsystems to produce efficient, cost-effective weapon platforms. Rudra combines a locally built airframe with Indian Helina anti-tank missiles and French Mistral air-to-air missiles. Pinaka integrates indigenous engineering with imported subsystems to deliver a powerful, modular system adaptable to many battlefield needs. Dhanush represents a smart upgrade of the 1980s-era Bofors FH-77B howitzer, retrofitted with modern electronics and locally sourced components. By enhancing a proven system, Indian engineers created an affordable artillery piece with renewed battlefield relevance. 'India should showcase and export its jugaad capabilities, which remain unparalleled,' said Brigadier Rahul Bhonsle (Retd) of New Delhi-based Security Risks consultancy. He called jugaad the indigenous defence industry's core strength, arguing it offers economical alternatives to nations struggling with expensive system replacements. Still, Bhonsle warned that in its current form lacks the standardisation and documentation needed for global exports. To become a serious exporter of adaptive military technology, India must transform from ad hoc innovation into a certifiable, modular, and globally compliant framework. Industry experts agree. Manuals, upgrade protocols, and implementation documentation are needed to make jugaad export-ready. Collaborations between start-ups, MSMEs, DRDO, armed forces technicians, and the corporatised Ordnance Factory Board could help formalise the process. Western militaries operate under strict rules on certification and IP compliance—standards that improvised fixes often breach. Even India's celebrated upgrades to the Su-30MKI, integrating French and Indian missiles with Israeli EW systems and helmet-mounted sights, would violate OEM contracts in most Western countries. Nevertheless, India's ability to keep over 290 ageing Chetak and Cheetah helicopters flying in Siachen at 14,000 feet – far beyond the original design envelope – is a striking example of battlefield ingenuity. How jugaad helped India during past conflicts During the 1999 Kargil War, the IAF rapidly armed Mirage 2000H fighters with Indian-made 1,000 lb precision-guided bombs, achieving devastating accuracy. Earlier, Indian defence technicians had quietly helped the Northern Alliance in Afghanistan maintain and overhaul its Mi-17 and Mi-35 helicopters – critical assets in the fight against the Taliban. On land, Soviet-era BMP-1 and BMP-2 infantry combat vehicles were upgraded with thermal sights and night-fighting capabilities. DRDO engineers repurposed the BMP-2 chassis to build the MUNTRA series of unmanned ground vehicles for surveillance, mine detection, and NBC operations – keeping troops out of high-risk zones. Likewise, the T-72 'Ajeya' tanks were retrofitted with Israeli and Indian thermal imagers and night sights, despite lacking the original design provisions. The P-18 early warning radar from the 1970s was modernised with Indian-built digital processors and Identification Friend or Foe (IFF) systems. Naval aviation saw similar upgrades. The licence-built Dornier Do-228, a German design from the 1980s, was retrofitted with EO pods for coastal surveillance, creating real-time ISTAR capability. These low-cost aircraft now supplement the Indian Navy's expensive P-8I Poseidons. In conflict zones like Kashmir, the Northeast, and Punjab, the Army turned civilian vehicles – tractors, Maruti Gypsies, Nissan Jongas – into light armoured vehicles, fitting them with machine guns and communications gear. These improvised platforms, often built in local workshops, were ideal for rugged terrain and counterinsurgency missions. Also Read: The Wonders of Jugaad in the Indian and Pakistani Militaries Army engineers also regularly adapted commercial cranes and trucks into mobile bridging systems for flood relief and operations in high-altitude zones – quick, local solutions that proved invaluable during emergencies. Looking forward, there is significant export potential in jugaad -style life-extension kits, low-cost battlefield management systems, drone jammers, and retrofit packages – particularly for countries still operating Soviet-origin tanks, APCs, and aircraft. Indian start-ups and state research labs are also blending off-the-shelf components with limited imports to build drones, simulators, and training systems – many of which proved effective during Operation Sindoor. What this shows is that when jugaad is embedded in a formal engineering framework, it can drive a new model of affordable hybrid innovation. But to scale globally, it must be codified – its ingenuity preserved, but refined into standardised, export-ready packages. Veterans argue the Ministry of Defence must evolve from a gatekeeper into a facilitator – empowering the private sector, particularly MSMEs and start-ups, to lead in adapting India's jugaad model for international markets. That shift requires simplifying procurement rules, speeding up export clearances, and investing in documentation and quality control. Only by cutting red tape and backing Indian innovation can the country transform its battlefield experience into a global defence asset. But unlocking potential ultimately rests with the MoD – still hampered by bureaucracy and risk aversion. Whether it can rise to the moment remains uncertain.
Mint
03-06-2025
- Business
- Mint
Will the bull run in defence stocks continue? Long-term growth seen, but valuations flash warning signs
Defence stocks have been on a blistering rally, with the NSE Defence Index soaring 20 percent in the last one month, vastly outperforming the Nifty 50, which rose by only about 1 percent during the same period. With India sharpening its strategic focus on indigenous defence manufacturing amid global geopolitical tensions, many investors are wondering: Will the bull run in defence stocks continue? While the long-term fundamentals remain strong, market experts warn that valuations have already priced in much of the near-term earnings growth. The bull case for defence stocks is rooted in a larger geopolitical and policy shift. According to Omniscience Capital, which manages a defence-focused smallcase, the Indian government is likely to ramp up defence spending from the current ~2 percent of GDP to 3–4 percent over the next decade. With India expected to become a $10 trillion economy by 2035, this would imply an annual defence budget exceeding USD 300 billion, or ₹ 30 lakh crore—translating to a 16–17 percent CAGR in defence expenditure over the next ten years. Omniscience Capital's report, 'Operation Sindoor: An Inflection Point for Bharat's Omni Defence Strategy', argues that the recent military and security operations have highlighted the need for a robust, future-ready defence infrastructure—not just to protect borders, but also to secure India's digital ecosystems, trade routes, and overseas strategic assets. India's domestic defence production crossed ₹ 1.4 lakh crore in FY25, with DPSUs (Defence Public Sector Undertakings) contributing around ₹ 1.1 lakh crore, or 78 percent. Of this, ₹ 90,000 crore came from 8 listed DPSUs, forming 66 percent of the total DPSU output. The government now aims to double the total defence production to ₹ 3 lakh crore by 2029. Even assuming DPSUs maintain a 60 percent share, their combined output would need to grow at 18 percent CAGR, hitting ₹ 1.8 lakh crore by 2029. Analysts project that the turnover of listed DPSUs will grow by 18 percent in FY26 and 22 percent in FY27, while 9 unlisted DPSUs are estimated to generate over ₹ 20,000 crore in FY26 alone. Private players are also expected to play a larger role, diversifying the sector's investment potential. However, while the sector's structural growth story remains intact, concerns around high valuations are surfacing. The median trailing P/E of listed DPSUs stands at 57, with forward P/E for FY26 and FY27 at 45 and 36, respectively. Valuations are even steeper for private defence companies, making investors vulnerable to corrections if expectations aren't met. Dr. Vikas Gupta, CEO of Omniscience Capital, said, 'The future of India's defence sector is undoubtedly bright. However, we urge investors to remain valuation-conscious. Much of the high growth has already been factored into stock prices, particularly in the short term.' Despite these cautionary signals, experts argue that the rally has legs over the long run. India's strategic ambitions—to become the world's third-largest economy by 2027–28 and a 7–8 percent contributor to global GDP—will require significant defence investment. The Indian Armed Forces are under pressure to modernize, especially with neighboring countries likely to boost their own defence spending in response to India's growing capabilities. Moreover, a strong fiscal position and global interest in India as a defence exporter could help sustain capex in the sector, while also creating tailwinds for listed players. Overall, the bull run in defence stocks has been driven by compelling macro themes: rising geopolitical risk, India's focus on self-reliance, and ambitious spending targets. However, with valuations running ahead of fundamentals in many cases, the question for investors is no longer whether defence is a growth story—it is how much of that growth is already in the price. Experts suggest a balanced approach: remain invested for the long-term transformation underway, but be selective and valuation-conscious in the short run. The next leg of the rally may belong not to the sector as a whole, but to the well-positioned companies with sustained earnings visibility. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Malaysia Sun
21-05-2025
- Business
- Malaysia Sun
Indian delegation takes part in opening ceremony of 17th LIMA 2025 exhibition in Malaysia
Langkawi [Malaysia], May 20 (ANI): An Indian delegation led by Raksha Rajya Mantri Sanjay Seth took part in the opening ceremony of the 17th edition of the Langkawi International Maritime and Aerospace Exhibition (LIMA 2025) in Langkawi, Malaysia, on Tuesday, the Ministry of Defence said in a release. The five-day event was inaugurated by the Prime Minister of Malaysia, Dato' Seri Anwar bin Ibrahim, and is being attended by global leaders and industry representatives from across the maritime and aerospace sectors. At the event, Sanjay Seth inaugurated the India Pavilion, which highlights the growing capabilities of India's indigenous defence industry. The pavilion features participation from key Defence Public Sector Undertakings (DPSUs) and private companies. Demonstrating India's increasing self-reliance in the defence sector, the pavilion showcases advanced technologies such as the BrahMos supersonic cruise missile and the Dornier aircraft manufactured by Hindustan Aeronautics Limited. India's well-curated presence among global defence leaders reflects its rising prominence in the field of indigenous defence production and innovation. During his visit, Raksha Rajya Mantri toured various exhibition stalls at the LIMA 2025 venue. He interacted with dignitaries and senior officials from several participating countries, exchanging views and reaffirming India's commitment to international collaboration in defence and aerospace. His meetings focused on strengthening existing ties and exploring new avenues for strategic cooperation in line with India's defence outreach goals. India and Malaysia share a strong and evolving bilateral relationship, with deepening engagements in defence and security. The relationship has been further strengthened under the Comprehensive Strategic Partnership, which was formally established during the Malaysian Prime Minister's visit to India in 2024. The partnership continues to expand across multiple strategic domains, including maritime cooperation, aerospace, and defence manufacturing. Adding further weight to India's participation at LIMA 2025, an Indian Naval Ship is also scheduled to take part in the event. Established in 1991 and held biennially, LIMA has grown into one of the largest and most significant maritime and aerospace exhibitions in the Asia-Pacific, bringing together leading global stakeholders in defence, technology, and innovation. (ANI)
India Gazette
20-05-2025
- Business
- India Gazette
Indian delegation takes part in opening ceremony of 17th LIMA 2025 exhibition in Malaysia
Langkawi [Malaysia], May 20 (ANI): An Indian delegation led by Raksha Rajya Mantri Sanjay Seth took part in the opening ceremony of the 17th edition of the Langkawi International Maritime and Aerospace Exhibition (LIMA 2025) in Langkawi, Malaysia, on Tuesday, the Ministry of Defence said in a release. The five-day event was inaugurated by the Prime Minister of Malaysia, Dato' Seri Anwar bin Ibrahim, and is being attended by global leaders and industry representatives from across the maritime and aerospace sectors. At the event, Sanjay Seth inaugurated the India Pavilion, which highlights the growing capabilities of India's indigenous defence industry. The pavilion features participation from key Defence Public Sector Undertakings (DPSUs) and private companies. Demonstrating India's increasing self-reliance in the defence sector, the pavilion showcases advanced technologies such as the BrahMos supersonic cruise missile and the Dornier aircraft manufactured by Hindustan Aeronautics Limited. India's well-curated presence among global defence leaders reflects its rising prominence in the field of indigenous defence production and innovation. During his visit, Raksha Rajya Mantri toured various exhibition stalls at the LIMA 2025 venue. He interacted with dignitaries and senior officials from several participating countries, exchanging views and reaffirming India's commitment to international collaboration in defence and aerospace. His meetings focused on strengthening existing ties and exploring new avenues for strategic cooperation in line with India's defence outreach goals. India and Malaysia share a strong and evolving bilateral relationship, with deepening engagements in defence and security. The relationship has been further strengthened under the Comprehensive Strategic Partnership, which was formally established during the Malaysian Prime Minister's visit to India in 2024. The partnership continues to expand across multiple strategic domains, including maritime cooperation, aerospace, and defence manufacturing. Adding further weight to India's participation at LIMA 2025, an Indian Naval Ship is also scheduled to take part in the event. Established in 1991 and held biennially, LIMA has grown into one of the largest and most significant maritime and aerospace exhibitions in the Asia-Pacific, bringing together leading global stakeholders in defence, technology, and innovation. (ANI)
News18
14-05-2025
- Business
- News18
India's Defence Exports Saw 34-Fold Increase To Rs 23,622 Crore Since Last Decade: Rajnath Singh
Last Updated: India's defence exports have increased from Rs 686 crore in the last decade to Rs 23,622 crore now, supplying a wide range of arms to 80 countries. Defence Minister Rajnath Singh on Wednesday said India's defence exports have increased 34-fold from Rs 686 crore in the last decade to Rs 23,622 crore in 2024-25, crediting Prime Minister Narendra Modi's vision of 'Atmanirbhar Bharat' for this achievement. 'India's defence sector is growing stronger than ever, driven by the spirit of Atmanirbhar Bharat. Defence exports have jumped from ₹686 crore in 2013-14 to ₹23,622 crore in 2024-25 — a 34-fold rise," Singh's office said in a post on X. India's defence sector is growing stronger than ever, driven by the spirit of Atmanirbhar Bharat. Defence exports have jumped from ₹686 crore in 2013-14 to ₹23,622 crore in 2024-25 — a 34-fold rise. — रक्षा मंत्री कार्यालय/ RMO India (@DefenceMinIndia) May 14, 2025 The rise in India's defence exports comes amid heightened tensions with Pakistan. As tensions soared over the Pahalgam terror attack last month, India launched Operation Sindoor on May 7, targeting terror camps in Pakistan and Pakistan-occupied Kashmir. Indian drones and missiles struck deep inside Pakistan, hitting nine terror camps and killing over a hundred terrorists. The Indian armed forces also retaliated to Pakistan's drone attacks by conducting precise strikes on 12 Pakistani air bases. India's successful military operation brought renewed attention to its indigenously developed weapons systems like Akash and BrahMos. In his address to the nation on Monday, PM Modi said Operation Sindoor proved the effectiveness of 'Made in India' defence equipment, and the world was now witnessing the arrival of Made in India arms as a formidable force in 21st-century warfare. The Defence Public Sector Undertakings (DPSUs) have shown a significant increase of 42.85% in their exports in the FY 2024-25, reflecting the growing acceptability of Indian products in the global market and the ability of the Indian defence industry to be a part of the global supply chain, according to an earlier Ministry of Defence (MoD) statement. A total of 1,762 Export Authorisation were issued in FY 2024-25 compared to 1,507 in the preceding year, registering a growth of 16.92%. The total number of exporters also grew by 17.4% in the same period. The Modi government has set an ambitious target of increasing defence exports to Rs 50,000 crore by 2029. The Government has brought in many policy reforms in the past few years to boost the Indian defence industry, such as simplification of industrial licensing procedure, removal of parts and components from the license regime, extending the validity period of the license, etc. First Published: May 14, 2025, 15:51 IST
