Amend legal & policy framework to safeguard defence supply chain: Niti Aayog

A new working paper by Niti Aayog, titled “India’s Path to Global Leadership: Strategic Imperatives for Vikshit Bharat @2047”, outlines crucial reforms in supply chain management to strengthen national security and operational readiness. The paper recommends overhauling legal and policy frameworks to secure India's defense supply and chain, a key step in shaping the country’s journey towards becoming a developed nation by 2047.

The report focuses on four pillars: Economic Competitiveness, National Security, Global Influence, and Legal Reforms. Emphasizing the future of supply chain management, it calls for streamlined procurement processes, simplified regulations, and enhanced public-private partnerships in line with the Ministry of Defence’s 2025 reform agenda.

To address rising cyber threats, the paper recommends blockchain-based electronic supply chain management, end-to-end encryption, and digital supply chain security. It also proposes national standards for future supply chain tracking, smart contracts for automation, and strict compliance with global data privacy laws.

Updates to the Defense of India Act and revisions to Defense Acquisition Procedures are urged to promote domestic sourcing, SCM innovations in India, and improved supply chain financing. These reforms align with the goals of the Supply Chain Management Development Program and reflect themes seen in the Best Supply Chain Events in India, like the Supply Chain Leadership Summit.

With its focus on cybersecurity, chain supply management, and strategic partnerships, the paper answers key questions like what is supply chain management and how to build it for the future.