With the Karachi Agreement the role of the Indian Army has changed. Instead of mainly a force designed to break the fortifications of the Indo-Pakistani border (1) they now share an unprotected border with an ally plus the Indo-Burmese border, while also fortified, terrain and climate is badly different to what the bulk of the Indian Army is trained to do except for certain units tasked to perform in this region.
As such some changes began to occur in the years inmediate to the Agreement. First was the integration of the former Pakistani soldiers and their units. Some were integrated fully, like the famed Khyber Rifles, while other due to different reasons were either eliminated or amalgamed. The lack of sufficient former Pakistani trained officers also caused that some of the brightest young Pakistani junior rank NCO's received the oppurtunity to go to the Indian Military Academy to increase the number of native officials. Also promises that the soldeirs that performed the oath of service to Bharat received the promise of receiving posting in the former Pakistan, except if they desire to waive that promise by their oiwn choosing. By the end of the decade the units have being fully integrated to Bharat's Army but still the bandit problem that existed in the Afghan border was now a problem of Bharat.
The second major change was the order to reorganize another 20 divisions into the new German Model of 1931, a process that tooked pretty much the rest of the decade. By the reduction in size of the Bharat's Army Division it was possible to reduce the number of troops in active service while maintaining the same strength in the number of divisions. Also the smaller number of troops gave more funds for R&D, utilized mainly in the design of a new service rifle and a new tank main gun.
The third major change was the decision to follow Germany's example and began test to introduce the 7X40mm bullet as the main service round. Test using the same Solothurn rifle tested by Germany, the American Garand and a native design finally produced the ISF-39 and the ISF-40 service rifles.(2)
Finally the decision to create a provisional Mechanized Brigade was made in early 1936, with discussions with German attaches being the main reason of the decision even when the majority of the high ranking officers rejected the idea of consolidating their armor assets. By the end of the decade the Brigade shedded their provisional title and another one was organized from assets already in place.
(1) What the British used to have there? Any ideas Hood? India will be amicable to paying for the British keeping the armamament in place while we take care of the cost of the elimination of those fortifications.
(2) Stats later.