The Indian Ministry of Defence is set to launch a comprehensive review of military procurement to identify and eliminate Chinese-origin components in equipment supplied to the armed forces, as well as to assess vulnerabilities within the defence supply chain.

This initiative is part of broader 2025 reforms aimed at strengthening national security and promoting self-reliance in defence manufacturing.

Despite existing strict guidelines prohibiting the use of Chinese parts in military hardware, recent investigations have revealed that some companies may still be sourcing components from China, occasionally routing them through third countries to obscure their origin.

This is particularly concerning in sensitive areas such as drones and anti-drone systems, where the risk of hidden vulnerabilities is considered high.

To address these concerns, the ministry plans to appoint an external agency with expertise in cost and data analysis.

The agency’s responsibilities will include:

Auditing claims of indigenous content in defence equipment, with a focus on verifying the true origin of all components.

Mapping supply chain dependencies to identify points of vulnerability and reliance on foreign—especially Chinese—sources.

Conducting detailed evaluations of cost structures and technology transfer processes to ensure transparency and prevent inflated pricing at later stages.

Assessing patent ownership and investigating cases where private firms may have underquoted development costs, potentially leading to excessive final costs for the end user.

The review is also a response to growing concerns about vendors overstating indigenous content, with essential components often traced back to China. The Army Design Bureau has reiterated the objective of eliminating Chinese components from suppliers, emphasising the need to reduce foreign dependency for security reasons.

The Army is actively working to identify and support Indian companies capable of manufacturing critical components domestically under the “Make in India” initiative.

Since Operation Sindoor, the ministry has expedited procurement processes, especially for frontline forces, and has increased scrutiny of vendors suspected of using Chinese parts.

In February, the ministry even cancelled drone procurement orders after discovering Chinese components, citing national security risks. With the new review, officials expect more defence hardware to undergo rigorous inspection to ensure compliance with security guidelines.

This comprehensive audit and reform effort reflects a strategic shift towards greater indigenisation, supply chain transparency, and resilience in India’s defence ecosystem, aiming to safeguard against hidden foreign dependencies and potential security threats.

Agencies