Public administration, defence and security: Value chain, from upstream to the customer
Governments raising taxes to fund law, defence, regulation and public services
Value chain, from upstream to the customer
Criticality to the chain: 5 · Chokepoint 4 · Critical 3 · Important 2 · Supporting 1 · Commodity service Stage 1 Revenue, borrowing and accountabilityAssess and collect income tax, GST and customs duties that fund every other part of government.
Why chokepoint: Each state has a single tax administration and nothing replaces it; without collection, spending must be cut or borrowed. Technologies E-filing and faceless assessment GST invoice matching networks Risk-based customs clearance Data analytics on third-party information Depends on Energy DC Data centres Industries Software and IT servicesData centres and cloudExamples: Central Board of Direct Taxes, Central Board of Indirect Taxes and Customs, HM Revenue & Customs, Internal Revenue ServiceIssue and hold government bonds and treasury bills, run government bank accounts and manage the cost of borrowing.4
Why critical: Most governments borrow every year and global public debt was just under 94% of GDP in 2025, with domestic banks and insurers holding much of it, so a loss of market confidence raises costs quickly. Technologies Bond auctions Electronic government securities trading Government payment and treasury systems Depends on Industries Finance: banking, insurance, marketsExamples: Reserve Bank of India, State Bank of India, Life Insurance Corporation of India, US TreasuryApprove budgets, pass laws and audit how public money is spent, reporting failures to parliament and the public.
Why important: Each country has one supreme audit body, but weak audit slows accountability rather than stopping services. Technologies Budget and appropriation processes Performance and compliance audits Open budget data Depends on Industries Software and IT servicesExamples: Comptroller and Auditor General of India, US Government Accountability Office, UK National Audit OfficeDesign, build and maintain aircraft, ships, missiles, radars and munitions for armed forces under long, government-negotiated contracts.
Why critical: Most major platforms have only one or two qualified suppliers, and replacements take years; India still imports many key systems. Technologies Combat aircraft and helicopters Naval shipbuilding Missiles and precision munitions Radars and electronic warfare Drones and counter-drone systems Depends on Commodities Ti TitaniumREE Rare earthsSt SteelAl AluminiumW TungstenGa Gallium Chemicals HNO3 Nitric acidAN Ammonium nitrate Energy Exp Explosives and propellantsJet Aviation propulsion Industries Aerospace and defenceSemiconductorsExamples: Hindustan Aeronautics, Bharat Electronics, Lockheed Martin, BAE Systems, Mazagon Dock ShipbuildersBuild and maintain roads, railways, government buildings, ports and cantonments under tenders, EPC and public-private partnership contracts.3
Why important: Many contractors bid, but large projects go to a small group with balance sheets and track records, and re-tendering costs months. Technologies EPC and hybrid-annuity contracts Tunnel boring and bridge launching BIM and project controls Precast and modular construction Depends on Commodities Cem CementSt SteelAgg Sand & gravelStn Crushed stoneOil Crude oil Chemicals Con Construction chemicals Energy ICE Internal combustion engines and gensetsICV Combustion road vehicles Industries Construction and infrastructureMachinery and equipmentExamples: Larsen & Toubro, IRB Infrastructure Developers, Afcons Infrastructure, VinciBuild and run identity, payments, tax, land and benefits systems, and the networks and data centres that connect government offices.
Why critical: Core digital public infrastructure such as Aadhaar runs as a single national system, so outages or breaches affect hundreds of millions of people at once. Technologies Digital identity (Aadhaar) Real-time payments (UPI) and direct benefit transfer Government cloud Secure government networks Open APIs (India Stack) Depends on Energy DC Data centres Industries Software and IT servicesTelecommunicationsData centres and cloudExamples: National Informatics Centre, UIDAI, NPCI, Tata Consultancy Services, InfosysRun call centres, records processing, staffing, security guarding and facility services for departments under contract.
Why supporting: Many contractors compete and contracts can be re-awarded within weeks to months. Technologies Contact centre platforms Document digitisation Workforce management Depends on Energy Bld Energy in buildings Industries Software and IT servicesReal estateExamples: Quess Corp, Serco, Capita, SIS GroupSupply drinking water, treat sewage, collect solid waste and run public rail and bus services, often as municipal or state-owned bodies.
Why critical: Utilities are local natural monopolies with no substitute supplier, so a failure hits whole cities within hours. Technologies Water treatment and distribution Sewage treatment plants Waste collection and landfills Railway and metro operations Smart meters and SCADA Depends on Commodities H₂O Water Chemicals WT Water treatment chemicalsCl2 Chlorine Energy Dist Distribution grids, mini-grids and interconnectorsRail Rail tractionWtE Waste-to-energy Industries Water and sanitationWaste and recyclingTransport and logisticsExamples: Delhi Jal Board, Brihanmumbai Municipal Corporation, Indian Railways, Delhi Metro Rail CorporationProvide free or subsidised healthcare and education, and fund insurance schemes that buy care from private hospitals.
Why important: For poorer households public hospitals and schools are often the only affordable option and take years to expand, but private hospitals, clinics and schools supply much of the same service in India. Technologies Public hospital networks Government insurance schemes Digital classrooms Health and education management systems Depends on Chemicals API Small-molecule APIs Energy Bld Energy in buildings Industries Healthcare servicesEducation and researchConstruction and infrastructureExamples: AIIMS network, Kendriya Vidyalaya Sangathan, National Health Service (UK), National Health AuthorityDefend borders and sea lanes, deter attack and respond to disasters, buying and operating equipment from defence industry.1,2
Why chokepoint: The state is the only legitimate supplier of national defence, with no substitute. Technologies Integrated command and control Satellite surveillance and communications Air and missile defence Logistics and fuel reserves Depends on Commodities Oil Crude oil Energy SPR Fuel stocks and strategic reservesJet Aviation propulsionShp Ship propulsionExp Explosives and propellants Industries Aerospace and defenceTelecommunicationsTransport and logisticsExamples: Indian Armed Forces, Ministry of Defence (India), US Department of Defense · Defence is 14.67% of India's 2026-27 central government spending2Keep public order, investigate crime, run courts and prisons, and respond to fires and emergencies.
Why critical: Each jurisdiction has one police force and court system, and private substitutes cover only small parts of the work. Technologies Crime and criminal tracking networks (CCTNS) Emergency response systems (112) E-courts and video hearings CCTV and forensic labs Depends on Commodities Oil Crude oil Chemicals Rgt Reagents and high-purity lab chemicals Energy ICV Combustion road vehicles Industries Software and IT servicesTelecommunicationsVehicles, ships, rail, aircraftExamples: State police forces, Supreme Court of India and e-Courts project, Central Armed Police ForcesMake policy, regulate sectors, pay benefits and deliver licences, certificates and services to citizens and businesses.
Why critical: Each level of government is the sole provider of its permits and benefits, though digital portals reduce the cost of delays. Technologies Direct benefit transfer Online citizen service portals Land records digitisation e-procurement (GeM) Depends on Energy Bld Energy in buildings Industries Software and IT servicesTelecommunicationsFinance: banking, insurance, marketsReal estateExamples: Government of India ministries, State governments, Municipal corporations, Government e-Marketplace (GeM)