Defense PSUs have been told to reduce dependence on imports

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

In the meeting, the minister urged the defense PSUs to reduce dependence on imports, strengthen research and development, ensure timely delivery of major projects and transform themselves into globally competitive defense companies, the Union Ministry of Defense said in a statement.

Mr. Singh, along with Defense Minister Sanjay Seth, was briefed by Minister (Defence Production) Sanjeev Kumar and chairmen and MDs of defense PSUs about their performance, achievements and plans, the ministry said.

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

During the meeting, heads of seven defense PSUs – Hindustan Aeronautics Limited, Mazagon Dock Shipbuilders Limited, Bharat Electronics Limited, Bharat Dynamics Limited, Garden Reach Shipbuilders and Engineers Limited, BEML and MIDHANI – presented checks totaling ₹3,951 crore to ₹2225-25 crore for the government’s dividend Mr.6.

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

India has achieved around ₹1.8 crore worth of defense production in 2025–26, with 16 defense PSUs contributing ₹1.29 lakh crore, describing the achievement as a major milestone in the country’s journey towards the aatmanirbhar (standalone) defense industrial base.

Mr. Singh urged defense PSUs to focus on timely delivery of equipment, reduce import dependency, convert R&D investment into technological leadership, increase defense exports, improve productivity through capital expenditure and extend support to start-ups and micro, small and medium enterprises (MSMEs).

“Advancement in defense PSUs is not just an economic or industrial imperative, it is a national security imperative,” the minister said, noting that recent global conflicts have demonstrated the importance of secure supply chains, increased manufacturing capacity, availability of critical spare parts, quick repair capabilities and the ability to sustain production during prolonged conflicts.

R&D success should not be judged only by the amount of money spent, but by tangible results, including the development of new technologies, intellectual property, prototypes and operational products, Mr Singh said.

While welcoming increasing R&D investment by defense PSUs, Mr. Singh said India needs to identify areas of specialized technology where it can become not only self-sufficient but also a global leader.

He also emphasized the need for defense PSUs to upgrade product quality to international standards as India seeks to expand its presence in global defense markets.

“As part of the ‘Make in India, Make for the World’ objective, we have to decide to transform all defense PSUs into global giants,” he said.

Mr. Singh has also published four publications on self-reliance, indigenization, innovation and future defense capabilities.

Published – 01 Sep 2026 21:30 IST