A NITI Aayog’s working paper has proposed amendment and revision in defence laws to develop a resilient and efficient defence supply chain in the face of evolving geopolitical tensions, cybersecurity threats, and global supply chain disruptions.
The Aayog in the working paper said a resilient and efficient defence supply chain is vital for national security and operational readiness, and it is imperative to develop a robust logistics strategy that ensures supply chain resilience, efficiency, and security.
“Legal and policy frameworks play a crucial role in safeguarding national defence supply chains and ensuring operational readiness,” it said.
The paper noted that as defence supply chains are increasingly vulnerable to cyber threats, including espionage, data breaches, and sabotage, integrating robust cybersecurity measures, including blockchain security and end-to-end encryption, is critical to safeguard defence supply chains.
“Update the Defence of India Act (1962) to address cyber resilience, supply chain security, and geopolitical risks, simplify procurement processes and mandate domestic sourcing for critical components, enforce mandatory cybersecurity audits and impose penalties for noncompliance,” the paper suggested.
The paper also pitched for providing legal incentives for domestic manufacturers and simplify export regulations and establishing a review committee for periodic updates to defence procurement and cybersecurity laws.
Noting that reliance on foreign suppliers for critical defence components poses significant risks during geopolitical conflicts, trade embargoes, and supply chain disruptions, it said strategic supplier diversification, regional sourcing, and domestic manufacturing are essential to mitigate these risks and enhance supply chain resilience.
While pointing out that the traditional ‘Just in Case’ inventory model used in military logistics results in high carrying costs and storage inefficiencies. The paper suggested that implementing advanced inventory management systems with real-time tracking and predictive analytics can optimize stocking strategies.
Military supply chains are complex systems that require high levels of adaptability, resilience, and efficiency to ensure national defence readiness.
Unlike civilian supply chains, military logistics are characterized by unpredictable demand, critical supply needs, and stringent security requirements.
In recent years, geopolitical tensions, global supply chain crises, and cybersecurity threats have highlighted the vulnerabilities of defence logistics.
The paper said Public-Private Partnerships (PPPs) have emerged as a strategic approach to enhance military supply chain resilience and efficiency.
“By leveraging private sector innovation, technology, and expertise. PPPs can optimize resource utilization, reduce costs, and improve operational readiness,” it said.
According to the paper, the integration of PPPs in defence logistics fosters collaboration between public entities and private enterprises. Enabling a more agile and responsive supply chain.
