The Indian Navy's ambition to be a "blue-water navy" with the capability to project power far beyond its coastal waters is currently challenged by a consistent lack of resources.

While India's impressive indigenous shipbuilding program is moving the navy toward its goal, chronic funding shortfalls and slow procurement are hindering its ability to maintain a robust and modern fleet.

The Vision: Building a Blue-Water Navy-

The Indian Navy's strategic vision is clear: to be a dominant force in the Indian Ocean Region (IOR) and beyond. A true blue-water navy must have the capability to operate far from its shores, and India has made significant strides in this direction.

• Indigenous Shipbuilding: India's naval modernization is a success story for the "Atmanirbhar Bharat" initiative. The commissioning of INS Vikrant, India's first indigenously built aircraft carrier, was a monumental achievement. A second indigenous carrier is also in the pipeline. India is also successfully building its own destroyers (Visakhapatnam-class), frigates (Project 17A), and is developing its own nuclear-powered submarines.

• Nuclear Capabilities: The induction of the Arihant-class nuclear submarines provides India with the a credible sea-based leg of its nuclear triad, a key component of a blue-water navy. This capability adds a critical layer of deterrence against rivals.

• Strategic Fleet Expansion: The navy aims to have a fleet of 175 ships by 2035, a goal that requires a fast pace of production. As of mid-2025, over 60 ships and submarines are under construction in Indian shipyards.

The Reality: A Budgetary Squeeze-

Despite these ambitious plans, a fundamental problem persists: the navy's resources are "shallow."

• Uneven Budget Allocation: The Indian Navy consistently receives the smallest share of the defense budget among the three services. Its share is often less than 20%, which has a direct impact on its modernization plans. The majority of India's overall defense budget is allocated to revenue expenditure—for salaries, pensions, and maintenance—rather than capital expenditure for new acquisitions. This leaves inadequate funds for buying new warships, submarines, and aircraft.

• Aging Fleet: The navy's conventional submarine fleet, in particular, is aging and in desperate need of replacement. The Project 75I program to acquire six new submarines has faced repeated delays, creating a critical gap in the navy's underwater warfare capability.

• Slow Procurement: The lengthy and bureaucratic procurement process in India means that even when funds are allocated, it can take years, sometimes decades, for a contract to be finalized and a platform to be delivered. This slow pace makes it difficult for the navy to keep up with the rapid naval expansion of countries like China.

• Technological Gaps: While India is building its own ships, it still relies on foreign suppliers for critical components like naval engines, advanced sensors, and certain weapons. This technological dependence leaves the navy vulnerable to supply chain disruptions and external pressure.

In conclusion, the Indian Navy's strategic vision is that of a powerful, blue-water force, and its indigenous shipbuilding program is a major step towards achieving it. However, the reality is that its ambitions are often outpaced by the slow pace of procurement and limited financial resources, leaving it with critical gaps in its fleet and a persistent "shallow resource" problem.