The Indian Army is increasingly turning to private industry, particularly MSMEs and Start-Ups, to develop and manufacture combat-critical spares and sub-assemblies for key armoured platforms, including T-72 and T-90 tanks, as well as other armoured vehicles. Hindu Business Line reported.

The move comes amid persistent supply chain constraints and the inability of traditional defence public sector undertakings (DPSUs) to fully meet operational requirements.

The initiative forms part of a broader effort to strengthen indigenous manufacturing, reduce dependence on imports and enhance operational readiness through localised production. Army officials view supply chain sovereignty as a critical element of modern warfare, with reliable access to spare parts becoming as important as frontline weapon systems themselves.

Sources said the Army's Master General Sustenance (MGS) branch, responsible for revenue procurement, logistics and equipment maintenance, is preparing to release a new compendium containing around 300 categories of critical spares along with their required quantities for domestic industry participation.

This follows an earlier engagement with the Society of Indian Defence Manufacturers (SIDM), the apex body representing India's private defence sector, when a separate compendium covering 200 spares and components was shared on 18 August. Through these interactions, the Army has sought to signal that industry is no longer viewed merely as a supplier but as an integral component of the nation's combat capability.

Officials said the emphasis is on overcoming supply chain bottlenecks while simultaneously improving ease of doing business for domestic defence manufacturers.

The drive emerged from a sustenance policy introduced several years ago after DPSUs, despite manufacturing tanks and armoured vehicles for decades, faced difficulties in developing many critical spare parts in-house. This prompted the MGS branch to provide greater long-term business visibility to private industry and encourage investment in indigenous solutions.

As part of the effort, the Army's Indigenisation Directorate released a list of 375 specific components in 2025 for industry development. These items span multiple technical domains, including engine systems, electronics, metallurgy and other specialised equipment required for maintenance and upgrades.

Out of roughly 4,50,000 spare parts identified across Army platforms for replacement or enhancement, approximately 50,000 critical items have been prioritised for indigenisation because of their importance in sustaining operational availability.

The Army has already generated more than ₹97 crore worth of business for domestic industry through 2,340 supply orders issued over recent years. These contracts covered 1,073 items selected specifically for indigenisation, with costs reportedly falling by nearly one-third following research and development undertaken by participating firms.

According to officials, procurement contracts now incorporate strict warranty provisions, lifetime sustenance commitments and integrated engineering support packages.

These requirements are built directly into production planning, pricing structures and order volumes to ensure long-term reliability.

Before the drive towards Atmanirbharta gathered momentum in the defence sector after 2014, India relied heavily on Russia and neighbouring countries for many of these critical spares.

However, the Russia-Ukraine conflict exposed vulnerabilities in global defence supply chains and accelerated efforts to diversify procurement sources while strengthening domestic manufacturing capabilities.

The initiative also aligns with the wider national objective of building a self-reliant defence industrial base, improving equipment availability rates and creating long-term opportunities for India's growing network of MSMEs and Start-Ups involved in advanced defence technologies.

Agencies