Indian Army Turns to MSMEs and Start-Ups to Develop 300 Critical Tank Spares, Reduce Import Dependence

New initiative aims to address supply chain bottlenecks, strengthen domestic defence manufacturing and improve operational readiness of armoured forces

New Delhi: The Indian Army is stepping up its engagement with micro, small and medium enterprises (MSMEs) and start-ups to develop and manufacture 300 critical spare parts for tanks and other armoured fighting vehicles, including the T-72 and T-90 main battle tanks.

The initiative is aimed at addressing persistent supply chain bottlenecks, reducing dependence on imports and strengthening India’s domestic defence manufacturing capabilities. It also seeks to overcome delays in the supply of components traditionally handled by Defence Public Sector Undertakings (DPSUs).

The Army’s Master General Sustenance (MGS) branch, which oversees logistics and equipment maintenance, is preparing a detailed compendium identifying 300 critical spare parts required by the armed forces. The document will specify the components and their required quantities, providing domestic manufacturers with a clearer picture of the Army’s procurement needs.

The move follows an earlier catalogue of 200 components shared with the Society of Indian Defence Manufacturers (SIDM) on August 18, 2026. It also builds on the Army’s broader policy of involving private industry in the maintenance and sustenance of military equipment.

In January 2026, the Army signed a Memorandum of Understanding with the Ministry of MSME to facilitate greater collaboration between Army Base Workshops and civilian technology centres. The partnership is expected to help private enterprises access technical expertise and develop components that meet military requirements.

The Army’s indigenisation programme has expanded significantly in recent years. In 2025, its Indigenisation Directorate identified 375 components, including engine parts, advanced electronic systems and specialised metallurgical products, for domestic development.

Of the approximately 4.5 lakh spare parts identified for vehicle upgrades and replacements, the Army is prioritising 50,000 critical items for immediate indigenisation.

The military is also exploring advanced manufacturing technologies to address shortages of components for ageing platforms. In 2026, 3D printing technology was introduced for producing selected replacement parts for T-72 tanks and BMP infantry combat vehicles.

Infrastructure development is another part of the effort. A ₹472-crore facility project was launched in Jabalpur in August 2026 to strengthen overhaul capabilities, with the capacity to service up to 80 T-series tanks annually.

The Army’s engagement with private manufacturers has already produced measurable results. Over the past few years, it has placed 2,340 supply orders covering 1,073 items with domestic private-sector companies, generating business worth more than ₹97 crore.

Private-sector research and development has also helped reduce the production cost of certain components by nearly one-third, resulting in savings for the government.

To ensure that locally manufactured spares meet operational requirements, the Army is incorporating stringent warranty provisions, lifetime maintenance arrangements and integrated engineering support into procurement contracts. These conditions are intended to ensure reliability and sustained availability of components under demanding field conditions.

The shift towards domestic sourcing has also been influenced by disruptions in India’s traditional defence supply chains. The country historically depended heavily on Russia and other foreign suppliers for several armoured vehicle components. The Russia-Ukraine conflict exposed vulnerabilities in these supply arrangements, reinforcing the need to develop reliable domestic alternatives.

With the proposed list of 300 critical spares, the Army is seeking to give Indian MSMEs and start-ups a more direct role in maintaining its combat equipment. The initiative marks a wider shift in defence procurement, with domestic manufacturers increasingly being treated as long-term partners in sustaining military capabilities rather than merely suppliers of individual components.

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