Enhancing National Security Through M&A: Legal Pathways For Defence Sector Reforms In India
- IJLLR Journal
- Jun 7
- 2 min read
Ayush Tiwari, Advocate, High Court of Chhattisgarh
ABSTRACT
The geopolitical landscape of South Asia has long been influenced by the strained and often hostile relationship between India and Pakistan. The history of the region is marked by several conflicts—including the wars of 1947, 1965, 1971, and the Kargil clash of 1999—that underscore the region’s volatile peace. The latest flare-up, culminating in Operation Sindoor, has reignited national security concerns. This decisive military campaign, involving targeted strikes on terrorist bases and cross-border military infrastructure, indicates a notable evolution in India’s defence strategy— from a traditionally reactive approach to a more assertive and pre-emptive one.
In light of this strategic pivot, the imperative to bolster India’s defence capabilities becomes increasingly clear. A powerful mechanism to achieve this objective lies in the strategic deployment of Mergers and Acquisitions (hereinafter referred to as “M&A”). Within the defence sector, M&A can yield significant advantages: it can unify scattered competencies, accelerate access to cutting-edge technologies, generate operational efficiencies through scale, and invigorate domestic manufacturing capacities. The drive toward self-reliance in defence production, as articulated in the Atmanirbhar Bharat initiative, calls for a comprehensive legal and policy framework that facilitates seamless and compliant M&A activity.
This article seeks to examine the growing importance of M&A in the Indian defence landscape through both legal and strategic perspectives. It delves into the applicable regulatory structures, historical developments, and industry dynamics that shape the sector. Special attention is paid to the complexities of Foreign Direct Investment (hereinafter referred to as “FDI”) regulations, the Defence Acquisition Procedure 2020 (hereinafter referred to as “DAP 2020”), and the role of regulatory bodies such as the Competition Commission of India (hereinafter referred to as “CCI”). Furthermore, the discussion highlights how M&A can act as a critical strategic tool, especially in the context of rising regional tensions and the need for greater technological sophistication and military preparedness.
In an era marked by evolving security threats and dynamic geopolitical shifts, India must harness the transformative potential of M&A to establish a resilient, agile, and future-ready defence infrastructure. The article concludes with policy suggestions aimed at strengthening the M&A ecosystem within the defence sector, underscoring its significance for safeguarding national sovereignty in the long run.
Keywords: Defence M&A, India-Pakistan, National Security, Strategic Partnership, FDI, DAP, Competition Law, Disinvestment, Indigenization, Technology-Transfer.
