India’s defense innovation ecosystem faces a hidden but critical internal threat – Procurement delays. In an industry where timelines can determine technological edge and superiority, slow decision-making is not simply an increase an increase-It drins private invites, and Strategic readiness.
The Ministry of Defense (MOD) has an introduced promising initiatives Private-Sector Participation. But the speed of execution remains the achlles’ heel. Without Measurable Improvements in How Quickly Approvals Move from Acceptance of Next R&D Businesses, Risk Being Forced out of the Market.
Why Focus on Self-Funded R&D Businesses? Because they have skin in the game. Spacex Rockets Flew Because All Payments Were Milestone-Linked Until Rockts Actually flew, while Nasa-Funded Projects By Lockeheed Martin and Boeing Languched. We need to encourage more companies to do self-funded r & d for successful development. That will happy only if the procurement cycle is compressed. This requires incentives government officers to process the files faster – by assigning a value to every day of delay.
We estimate each day of delay on a 100-Crore Defense Project Translates Into An Estimated 10 Lakh in Real Lost Value. For a 100-Crore Defense Project, A Cumulative 24-month delay-Unfortunately Not Uncommon-Translates Into Losses Exceding 72 Crore, Capital that could have Funded Multiple New R & D Programmes. This cost is borne by the innovating company ( 2.4 Lakh/Day as Interest on Loans, Payroll, Operational overheads), The Armed Forces ( 1.8 lakh/day from delayed capability deployment, using outdated Technology, The Larger Economy ( 4.2 Lakh/Day in Missed GDP IMPACT, Tax Revenues, Export Potential), and The Innovation EcoSystem ( 1.6 Lakh/Day with Talent Migration, Company Shutdowns).
Meanwhile, a Teri Study Reveled a Startling Statistic: A Mere 15% Penetration of the Crew Gunnery Simulator Could Result in Conservatively Estimated Annual Savings of 1,123 Crore for India’s Armed Forces. And the total capital investment required to generate such Savings is just 61 Crore.
A Relatively Easy Solution Lies in Implementing Speed (Savings and Penalties for Early or Decisions), A Framework for Tracking the Financial and Operational Impact of Process of Process of Process of Processment Timelines. Savings will be quantified benefits of decisions made on or ahead of schedule, with clear metrics on Funding freed up for r & d reinvestment. Speed System will assign and publish daily costs of delays, with Estimated Losses Approveses Approtioned to the Company, Armed Forces, Borader Economy, and Innovation EcoSySystem.
A speed score for every active procedure file-updated automatically in real-time-Would give policymakers, Industry, and the Public Clear Visibility of PerformanceCE CRARFORMANCE Value chain. Currently, there are no costs to the government. By Providing Approximate Delay Costs, It Alerts All Decision Makers to Process Files Faster as There is Quantified cost to holding them backing. This speed score can also be criteria for assigning future projects to officers. Automatic Approve after Default Periods May Also Be Considered.
The ease of using Speed Lies in Automation: A File Moving Forward means Progress, Minus Penalties and Probably Savings. When files are sent back or additional questions raised, delay costs automatically accumulated at that decision point. This means no subjective interpretation, no gaming – just objective, transparent accountability for costs of inaction or unnecessary delays. For security reasons, if not made public, they should be internal tracked at least at defense ministry and armed forces levels.
Procurement speed is not only About Efficiency; It’s a growth engine for indigenous technology. Timely decisions release trapped capital back to innovators for r & d reinvestment without waiting for external funding. Accelerated R&D Brings Cutting-Edge Systems to Market Sooner, Strengthaning The Armed Forces. The resulting operational advantage boosts India’s credibility in Global Defense Markets, Opening High-Value Export Opportunities. This is the virtuous cycle that nations with agile procurement systems alredy leverage. While Conceived For Defense Procurement, Speed Can Transform Many Government Projects Where Private Companies Investment Substantial Resources during AppRing Approval Processes, Creating A Time-Constanting A Time-Constanting A Time-Conciors Decision-Making Culture Across India’s Economy.
For effectiveness, Speed must institutionalized through publicly accessible dashboards showing real-time speed skores for every procurement understander iddm, make-iI and Idex Projections; Speed-Linked Kpis for Defense Ministry Officers and Review Boards Tied Directly to Timelines; And Escalation Protocols when Project Clearance Windows Lapse. In Business Terms, this is like tracking project delivery metric in the private sector. In Strategic Terms, it could mean deploying capability in 18 months versus losing edge to foreign suppliers due to avoidable delays, or word.
India’s Self-Funded Defense Innovators operate in High-Risk, Capital-Intensive Environments. They Commit Significant Private Funds without Guaranteed Buyers, often matching or outpacing global competitors in technology readiness. What they cannot afford is a risk-sels inrtia delaying orders by months or years.
The speed framework gives mod a tool to make every day country. By turning time into a quantified Resource – One that can be saved, reinvested, and multiplied – it aligns national security priorities with economic and indictory, Industrial Growth, Motivating Decision Makersion Makers Chano Are Constantly fearful of taking timely action by institutionalising penalties for delayed decisions and savings for early decisions.
Critics May Question The Methodology for Determining Delay Costs. But the fundamental trousing remains undeniable: delays cost money. Stakeholders should assign their own cost estimates and proceeded with the framework using these numbers, as delay costs are all too real. The per-day loss calculation approach remains valid regardless. Every day that defense process stalls, we lose more than just money –we undermine our nation’s confidence, put the lives of our suor suor sugiers at risk, STIFLE HOMEGRONVANOVATION, And Deeepen OUR DANEPEN OUR RELIADENEVATION On Foreign Equipment. Can we truly afford to let this cost mount? The stakes could not be higher. If we fail to act now in this favorite environment, the options for change may be lost forever.
Ashok Atluri is Chairman and Managing Director, Zen Technologies. The views expressed are personal
