Blueprint for Growth

Maj. Gen. (Dr) Rambir Mann (retd)

Global research shows that sustained investment in a nation’s defence sector—driven by shifting security landscapes and geopolitical imperatives—can transform the country into a global defence hub, driving long-term economic prosperity. From Germany’s interwar rearmament to the United States’ World War II mobilisation and modern examples like Israel, history demonstrates that defence industrial investment not only strengthens national security but also accelerates Gross Domestic Product (GDP) growth through job creation, innovation and reduced import dependency. In the aftermath of Operation Sindoor and amid evolving regional and global security challenges, India faces a similar imperative: to deepen indigenous defence production and R&D, thereby catalysing economic expansion and strategic resilience.

Geopolitical Catalysts for Defence Industrialisation: Throughout history, existential threats and shifting power balances have compelled nations to fortify their defence industrial bases. In post-World War I Germany, rearmament between 1933 and 1939 slashed unemployment from two million to near zero, fuelling industrial growth and expanding GDP. Similarly, the US—emerging from the Great Depression—channelled unprecedented resources into defence between 1939 and 1945, creating 17 million jobs and boosting GNP from USD88.6 billion to USD135 billion. Modern Israel, born amid regional hostility, devotes roughly 3.5 per cent of its GDP to defence industries, supporting over 200,000 jobs and nurturing cutting-edge dual-use technologies.

Just as these nations turned crisis into opportunity, India now stands at a strategic crossroads. The successful execution of Operation Sindoor underscored fresh threats along our borders, while a rapidly shifting Indo-Pacific security architecture demands greater self-reliance. This contemporary security environment mirrors historical moments when defence industrial expansion was not merely a strategic choice, but an economic imperative.

Linking Security Imperatives to Economic Outcomes: By weaving together lessons from history with India’s current security challenges, a powerful narrative is uncovered. Defence industrial investments do more than equip armed forces—they unlock economic multipliers across manufacturing, electronics, services and R&D. As India navigates post–Operation Sindoor realities and dynamic regional alliances, every rup