Yeah, except that IRL we already knew that the armed forces weren't ready more or less since the army very barely won in Ethiopia (a conflict that saw the fascists use chemical weapons out of desperation).Not really.
Basically, ITTL, Mussolini invaded Yugoslavia on his own rather than with the help of Germany. Once the Italian military had a hard time beating Yugoslavia, Mussolini realized that he needed to improve the quality of the Italian military.
It still didn't change much because, well, Mussolini valued political affiliation more than actual competence and because he honestly believed you could beat a well armed enemy with the power of will.
Also our industry was seriously underdeveloped . From wikipedia:
"In the late 1930s, the economy was still too underdeveloped to sustain the demands of a modern militaristic regime. Production of raw materials too small, and finished military equipment was limited in quantity and too often in quality. Although at least 10% of GDP, almost a third of government expenditure, began to be directed towards the armed services in the 1930s, the country was "spectacularly weak". Notably, the investment in the early 1930s left the services, especially the army, obsolete by 1940. Expenditures on conflicts from 1935 (such as commitments to the Spanish Civil War in 1936 to 1939 as well as the Italy-Albania War in 1939) caused little stockpiling to occur for the much greater World War II in 1940–1945."