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Rajnath Singh Asks DPSUs to Cut Imports, Boost R&D and Exports Amid Record Defence Output

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Rajnath Singh
Defence Minister Rajnath Singh reviewed annual performance of all 16 Defence Public Sector Undertakings (DPSUs) in Delhi

Defence Minister Rajnath Singh on Tuesday reviewed the annual performance of all 16 Defence Public Sector Undertakings (DPSUs), calling for faster delivery, lower import dependence, greater technology development and a sharper push into global defence markets as India seeks to build a resilient defence industrial base.

The review comes after India recorded its highest-ever annual defence production of around Rs 1.8 lakh crore in 2025-26, with the DPSUs accounting for Rs 1.29 lakh crore, according to the Defence Ministry.

Singh, who chaired the review meeting in New Delhi in the presence of senior officers, said the performance of DPSUs was directly linked to national security, particularly as recent conflicts have highlighted the importance of assured supply chains, surge production capacity, availability of critical spares and rapid repair capabilities.

“The progress of DPSUs is not merely an economic or industrial necessity, it is a national security imperative,” Singh said, urging the companies to prepare for the demands of prolonged conflicts.

He asked the DPSUs to improve delivery timelines, reduce dependence on imported components, convert research and development into operational technologies, expand exports, raise productivity through capital expenditure and deepen engagement with startups and MSMEs.

The Minister also stressed that increased R&D spending should be judged by outcomes rather than expenditure alone. New technologies, intellectual property, prototypes and operational products should be the key measures of success, he said.

“We must identify niche technology areas where India can become not just self-reliant, but a global leader,” Singh said.

The Minister also called for a concerted effort to raise DPSU products to global quality standards and transform them into internationally competitive defence companies under the “Make in India, Make for the World” approach.

The annual review covered the performance, major projects, manufacturing capabilities, technology development, exports and future expansion plans of the 16 DPSUs. Singh said their growing contribution reflected progress in building an indigenous defence manufacturing ecosystem.

At the meeting, seven DPSUs – Hindustan Aeronautics Ltd (HAL), Mazagon Dock Shipbuilders Ltd (MDL), Bharat Electronics Ltd (BEL), Bharat Dynamics Ltd (BDL), Garden Reach Shipbuilders & Engineers (GRSE), BEML and MIDHANI – presented dividend cheques totalling Rs 3,951 crore to Singh towards the government’s equity share for 2025-26.

The Minister also released four publications outlining the DPSUs’ and HAL’s plans for indigenisation and modernisation. These include a five-year roadmap for indigenising products and processes across DPSUs, the DISHA initiative to expose students to defence technologies and modern manufacturing, and separate HAL roadmaps for modernising the aerospace major and increasing indigenous content in the aerospace and defence sectors.

Team BharatShakti

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