Defence PSUs told to reduce dependence on imports
Rajnath Singh reviews 16 defence PSUs, urging reduced import reliance and enhanced R&D for India's self-reliant defence manufacturing.
Recent global conflicts have shown the importance of assured supply chains, surge production capacity, availability of critical spares, rapid repair, and sustaining manufacturing over prolonged conflicts, says Defence Minister
Updated - September 02, 2026 01:46 am IST - New Delhi
Union Defence Minister Rajnath Singh during the annual performance review meeting of 16 Defence Public Sector Undertakings at DSPU Bhawan, on September 1, 2026. Photo: X/@rajnathsingh
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
politics / defence / armed Forces / national security
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