Self-reliance in the defense sector has led to a dramatic increase in the country’s defense production, and the number of suppliers is also large. All the 16 Defense Public Sector Undertakings (DPSUs) of the country are playing their role as strong pillars towards achieving self-reliance in border security. India’s total defense production reached an all-time high at Rs 1.51 lakh crore in the financial year 2024-25. The share of DPSUs and other public sector undertakings in this has been around 77%.
According to the data, only 16 DPSUs together have contributed more than Rs 1.16 trillion to this production. Due to this, there has also been an increase of 16% in the production of DPSU.
The contribution of DPSUs to India’s defense production is significant and historic. Through initiatives like ‘Atmanirbhar Bharat’ and ‘Make in India’, the country is reducing its dependence on imports for its defense needs, and DPSUs are becoming the pillars of this work. Not only this, DPSUs are also making significant contribution in the increasing defense exports of the country. The share of DPSUs in the total record exports of Rs 23,622 crore in the year 2024-25 has been Rs 8,389 crore. In this way, an increase of 42.85% has been registered in the exports of DPSU as compared to the last year. This figure reflects the global acceptance of Indian defense products.
Presently DPSUs are not only manufacturing complex platforms like fighter aircraft (Tejas), missiles (Akash), and warships but also creating better ecosystem for micro, small and medium enterprises (MSMEs). The government is working towards taking total defense production to Rs 3 lakh crore by 2029, with the role of DPSUs being seen as the cornerstone. This achievement reflects the rapidly growing indigenous capability in the defense sector under Prime Minister Narendra Modi’s Self-reliant India policy, with DPSUs being the main pillars of indigenization and production under the Self-reliant India campaign.
Defense Minister Rajnath Singh had described the outstanding role of DPSUs in Operation Sindoor as a proof of the reliability and capability of indigenous platforms. In view of the prevailing global situation including Russia-Ukraine war, war in Middle East countries and increasing tensions between Pakistan-Afghanistan and growing power of China, DPSUs have increased their focus on rapid indigenization of critical technologies, holistic R&D, product quality improvement, timely delivery and export growth along with meeting the country’s strategic needs. The Government of India is also insisting that DPSUs prepare clear R&D and indigenization roadmaps.
India is currently exporting defense products to more than 100 countries including the US, France and Armenia. Increasing investment, policy reforms, and private sector participation with DPSUs have provided impetus to exports. More than 16,000 MSME units are active in defense manufacturing in the country, producing a range of critical technologies from drones to electronics. Due to this, the share of private sector in defense production has also increased to about 23%. In view of this, the Government of India has set a big target of exports worth Rs 50,000 crore with production worth Rs 3 lakh crore in the next three years. Under this, the year 2025 was declared the ‘Year of Reforms’.
The government aims to transform the country’s armed forces into a technologically advanced battle-ready impenetrable military force. In view of the strong steps towards self-reliance in the defense sector, this task is no longer difficult. The thinking, direction and public awareness of the present government has given new flight to this objective. There is no doubt that by further strengthening collaboration between DPSUs and the private sector, prioritizing critical technologies and making defense exports an effective instrument of diplomacy, India can quickly transform from a major arms importer into a credible global defense manufacturing hub. In this process, indigenization in the defense sector will not only strengthen the national security, but will also promote modernization of the industrial sector and self-reliance in the strategic sector, which will also become the main basis of the economic strength of the country.
– Dr. Vikas Shukla, Kanpur
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