Systemic institutional dysfunction delaying roll-out of key defence equipment

The defence sector in India is growing. The nation has produced ₹1.54 trillion worth of defence equipment, seen a 25-fold increase in exports, and won 92% of domestic defence contracts, reports the Rubix Industry Insights: Defence May 2026 edition. However, a combat-proven indigenous tank has been delayed for five years, not for a lack of capability but because of institutional shortcomings that have made government reforms difficult to implement.

The Arjun Mk 1A is not an ordinary procurement. Since 2004, the Indian Army has deployed 124 Arjun Mk 1 tanks, which have consistently outperformed imported options, according to media reports. An unsettling finding from a 2014 Comptroller and Auditor-General report was that though the Arjun’s benchmarks were deliberately set higher than those of the Russian T-90, the domestic tank performed better on crucial factors such as firepower, mobility, and survivability.