Archive · 2 Sep 2026
India Plans to Turn Defence PSUs Into Global Giants
India wants its government-owned defence companies to become strong competitors around the world.
These companies currently make equipment mainly for India’s armed forces.
Defence Minister Rajnath Singh said they should also export more products.
He said this is important for national security, not only for earning money.
The companies should make more parts in India and depend less on imports.
They are also expected to develop new technologies and deliver equipment on time.
The plan includes working with smaller companies and start-ups.
India’s defence production reached about Rs 1.8 lakh crore in 2025–26.
Seven defence companies also paid Rs 3,951 crore in dividends to the government.
Defence Minister Rajnath Singh directed 16 DPSUs to prepare a five-year plan for global competitiveness, exports and technology leadership.
India’s defence production reached about Rs 1.8 lakh crore in 2025–26, with DPSUs contributing approximately Rs 1.29 lakh crore.
Seven DPSUs paid the government Rs 3,951 crore in dividends from 2025–26 operations.
The plan prioritises timely deliveries, lower import dependence, stronger research outcomes, exports, modernisation, and support for start-ups and MSMEs.
The government released roadmaps covering DPSU self-reliance, student-industry training, and Hindustan Aeronautics Limited’s modernisation and indigenisation.
- Who
- Union Defence Minister Rajnath Singh, 16 defence Public Sector Undertakings, and senior defence officials.
- What
- The government reviewed DPSU performance and launched a five-year strategy to make them globally competitive defence manufacturers.
- When
- The annual performance review took place on September 1, 2026, covering 2025–26 performance.
- Where
- DPSU Bhawan in New Delhi, India.
- Why
- The stated goals are to strengthen national security, reduce import dependence, build reliable wartime supply chains, increase exports, and improve technology and manufacturing capabilities.
- DPSUs covered
- 16 defence Public Sector Undertakings
- India’s defence production
- About Rs 1.8 lakh crore in 2025–26
- DPSU contribution
- Approximately Rs 1.29 lakh crore, or about 72% of total production
- Dividends paid
- Rs 3,951 crore from seven DPSUs to the government
- Planning horizon
- Five years
- Core objective
- Transform DPSUs from domestic suppliers into globally competitive manufacturers
- Documents released
- Four publications covering self-reliance, student-industry engagement, and Hindustan Aeronautics Limited roadmaps