Union Defence Minister Rajnath Singh on Tuesday (September 1, 2026) reviewed the annual performance of all 16 defence Public Sector Undertakings (PSUs).

In a meeting, the Minister called upon the defence PSUs to reduce import dependence, strengthen research and development, ensure timely delivery of major projects, and transform themselves into globally competitive defence companies, the Union Ministry of Defence said in a statement.

Mr. Singh, along with the Minister of State for Defence Sanjay Seth, was briefed by Secretary (Defence Production) Sanjeev Kumar, and the Chairmen and MDs of the defence PSUs on their performance, achievements, and roadmaps, the Ministry said.

Mr. Singh reviewed the progress made by state-owned defence companies in improving indigenous manufacturing capabilities, defence technologies, exports, and supply chains, and executing major projects.

During the meeting, the heads of seven defence PSUs — Hindustan Aeronautics Limited, Mazagon Dock Shipbuilders Limited, Bharat Electronics Limited, Bharat Dynamics Limited, Garden Reach Shipbuilders and Engineers Limited, BEML, and MIDHANI — presented dividend cheques totalling ₹3,951 crore to Mr. Singh towards the government’s equity shares for 2025-26.

Commending the defence PSUs for their contribution in strengthening India’s defence manufacturing ecosystem and advancing the vision of ‘Aatmanirbhar Bharat’, Mr. Singh said their performance reflected the country’s growing capabilities in building a robust indigenous defence industrial base.

India achieved defence production worth approximately ₹1.8 lakh crore during 2025-26, with the 16 defence PSUs contributing ₹1.29 lakh crore, he said, describing the achievement as a significant milestone in the country’s journey towards an aatmanirbhar (self-reliant) defence industrial base.

Mr. Singh urged the defence PSUs to focus on timely delivery of equipment, reducing import dependence, converting R&D investments into technological leadership, increasing defence exports, improving productivity through capital expenditure, and expanding support for start-ups and micro, small and medium enterprises (MSMEs).

“The progress of defence PSUs is not merely an economic or industrial necessity; it is a national security imperative,” the Minister said, noting that recent global conflicts had demonstrated the importance of assured supply chains, surge production capacity, availability of critical spares, rapid repair capabilities, and the ability to sustain manufacturing during prolonged conflicts.

The success of research and development should not be judged merely by the amount of money spent but by tangible outcomes, including the development of new technologies, intellectual property, prototypes, and operational products, Mr. Singh said.

While welcoming the increasing investment in R&D by the defence PSUs, Mr. Singh said India must identify niche technology areas where it could emerge not only self-reliant but also as a global leader.

He also stressed the need for defence PSUs to elevate product quality to international standards as India seeks to expand its presence in global defence markets.

“In pursuit of the ‘Make in India, Make for the World’ objective, we must resolve to transform all defence PSUs into global giants,” he said.

Mr. Singh also released four publications on self-reliance, indigenisation, innovation, and future defence capabilities.

Published – September 01, 2026 09:30 pm IST

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| Photo Credit: The Hindu

India has transitioned from being an arms importer and found a place in the list of top 25 arms exporter nations, the Economic Survey revealed on Monday.

Between 2015 and 2019, India held the distinction of being the world’s second-largest arms importer, but the narrative has changed now. Defence production has grown substantially in the country, from ₹74,054 crore in the financial year 2016-17 to ₹108,684 crore in 2022-23, boosting defence exports.

“The defence industry, including the private sector and Defence Public Sector Undertakings (DPSUs), has made tremendous efforts to achieve the highest-ever defence exports,” the survey pointed out.

In charts: Key takeaways from Economic Survey 2023-24

In addition, there has been a rise in the number of export authorisations issued to the defence exporters, it added. “From 1,414 export authorisations in FY23, the number has increased to 1,507 in FY24.”

About 100 domestic companies are exporting a wide range of defence products and equipment such as the Dornier-228 aircraft, artillery guns, BrahMos missiles, Pinaka rockets and launchers, radars, simulators, and armoured vehicles, the survey noted.

Stating that the government has taken several policy initiatives over the past 10 years to boost defence exports, the survey said export procedures have been simplified and made industry-friendly, with end-to-end online export authorisation curtailing delays and facilitating ease of doing business.

“Further, the Aatmanirbhar Bharat initiatives have helped the country by encouraging indigenous design, development and manufacture of defence equipment, thereby reducing dependency on imports in the long run,” it added.

While defence exports have gone up, India continued to remain the world’s top arms importer in the period 2019-23, with imports going up by 4.7% compared with the period 2014-18, according to a report in March from the Swedish think tank Stockholm International Peace Research Institute (SIPRI). India came back to the top slot in arms imports after briefly ceding space to Saudi Arabia in the past.

In the interim Budget presented in February, the total allocation for the Defence Ministry was ₹6.2 lakh crore, of which the capital allocation, for new procurements, was ₹1.72 lakh crore, 5.78% higher than the Budget Estimates of the previous year.

Note of caution

Earlier this week, sounding a note of caution on the push on Aatmanirbharta, or self-reliance, Vice-Chief of the Indian Air Force (IAF) Air Marshal A.P. Singh said that Aatmanirbharta cannot be at the cost of nation’s defence. “Nation’s defence comes first and foremost,” he said, while stating that when it comes to national defence, “there will be compulsions to deviate from their path” in case they do not get the things they need or the kind of systems and weaponry that is required to survive in today’s world.

Talking of the indigenous technological development under way he said the “rate at which we are getting our equipment at the moment is too low”.