Raksha Mantri Reviews DPSUs’ Performance, Urges R&D Push Amid Global Tensions

In a significant move to bolster India’s defence preparedness and indigenous defence manufacturing, Raksha Mantri Shri Rajnath Singh chaired a high-level review meeting with the Chairpersons and Managing Directors (CMDs) of eight Defence Public Sector Undertakings (DPSUs) on May 26, 2025. The meeting, held at South Block in New Delhi, comes at a crucial juncture following the successful execution of Operation Sindoor, which demonstrated the growing capability and efficiency of India’s defence ecosystem.

Operation Sindoor and the Rising Role of Indian DPSUs

Shri Rajnath Singh began the meeting by commending the entire Indian defence industry, including DPSUs, for their pivotal role in the success of Operation Sindoor. The operation, aimed at neutralizing cross-border terror threats with precision, showcased the readiness and technological prowess of the Indian Armed Forces—capabilities made possible through the indigenous platforms and solutions provided by DPSUs.

He emphasized that the Government under the leadership of Prime Minister Shri Narendra Modi remains unwavering in its commitment to strengthening India's self-reliant defence manufacturing ecosystem, also known as Aatmanirbhar Bharat in Defence. Singh credited DPSUs for laying the foundation of this effort, while urging them to gear up for future challenges.

Call for Enhanced R&D and Focus on Modern Warfare

In light of the rapidly evolving geopolitical landscape and security challenges, Raksha Mantri issued a clarion call for innovation. He directed the DPSUs to significantly enhance their investment in research and development (R&D), particularly in emerging and disruptive technologies that are redefining modern warfare. These include artificial intelligence (AI), unmanned systems, cyber warfare capabilities, quantum technologies, electronic warfare systems, and autonomous platforms.

“India must not only match but also lead the global innovation curve in defence technologies,” he asserted, while encouraging DPSUs to form strategic collaborations with startups, academia, and private enterprises under the iDEX (Innovations for Defence Excellence) framework.

Record Production Value and Financial Performance

The Secretary of Defence Production, Shri Sanjeev Kumar, provided a detailed presentation outlining the growth trajectory and operational performance of the DPSUs. As per the projections, the value of production for Financial Year 2024–25 is expected to cross ₹1,40,000 crore—a historic milestone. Of this, approximately 78% is expected to be contributed by the DPSUs, reflecting their growing scale, efficiency, and alignment with national defence objectives.

The production surge has been attributed to both improved capacity utilization and successful execution of ongoing orders from the Indian Armed Forces, as well as increased exports to friendly nations.

Exhortation for Timely Deliveries and Enhanced Exports

While appreciating the production growth, Shri Rajnath Singh laid strong emphasis on the timely delivery of systems and products. He highlighted that efficiency in delivery timelines is crucial to ensure operational readiness and strategic advantage.

Furthermore, he directed DPSUs to adopt more aggressive marketing strategies and enhance their global footprint through exports. “DPSUs must develop as global brands and become credible suppliers in the global defence market,” he urged, while highlighting the potential of Indian systems in aerospace, shipbuilding, electronic warfare, and missile technologies.

Recognition for Excellence: HAL and MDL Honoured

In a moment of pride for India's defence sector, Hindustan Aeronautics Limited (HAL) was congratulated on attaining Maharatna status—an elite recognition granted to public sector enterprises with exceptional financial and operational performance. HAL now joins the highest tier of Indian PSUs, giving it greater autonomy in investment and expansion decisions.

Similarly, Mazagon Dock Shipbuilders Limited (MDL), known for building India’s cutting-edge submarines and warships, was awarded Navratna status. This elevation enables MDL to pursue higher-value projects and joint ventures with greater flexibility.

These recognitions underscore the government’s push toward empowering top-performing defence firms to scale globally and act as flagbearers of India’s technological strength.

Interim Dividends to Government: Rs 2,138 Crore Contribution

Highlighting their robust financial health and profitability, the CMDs of the eight DPSUs—HAL, MDL, Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), Mishra Dhatu Nigam Limited (MIDHANI), Garden Reach Shipbuilders and Engineers Limited (GRSE), Goa Shipyard Limited (GSL), and BEML Limited—handed over interim dividend cheques amounting to ₹2,138 crore to the Government of India for FY 2024–25.

These dividends reinforce the commercial viability of defence manufacturing under the public sector, even as these firms contribute strategically to national security.

India’s Strategic Defence Push: Future Outlook

The review meeting marked a reaffirmation of India’s vision to become a top global defence exporter and self-reliant manufacturer. Raksha Mantri reiterated that in today’s volatile international climate, a strong domestic defence industrial base is essential not just for national security, but also for India's economic resilience and global stature.

He urged the DPSUs to be agile, adaptive, and forward-looking—citing the need to transition from license-based manufacturing to full-scale indigenous design and system integration.

The Ministry of Defence is expected to soon roll out additional reforms to enable faster procurement, ease of doing business in defence manufacturing, and a dedicated export facilitation framework for DPSUs and private players alike.