Defence

India Defence Sector Hits USD 17 Billion Milestone; Rajnath Singh Pushes for Export-Led Growth and Green Manufacturing

By A Correspondent

New Delhi: In a significant boost to India’s defence manufacturing ambitions, India’s defence production surged to INR 151,000 crore (USD 17 billion) in 2024โ€“25, marking a historic high. Notably, the state-run defence industries contributed 71.6% of this output, underlining their central role in building Indiaโ€™s self-reliant defence ecosystem.

Defence exports too climbed to INR 6,695 crore (USD 755 million), reflecting growing international trust in Indian systems. “This clearly shows that Indian defence products are gaining global respect,” Defence Minister Rajnath Singh said, calling on DPSUs to “turn India into a global defence manufacturing hub.”

Rajnath Singh was chairing a high-level review of Defence Public Sector Undertakings (DPSUs) at the newly inaugurated DPSU Bhawan in New Delhi on Nov. 10, 2025. The meeting celebrated not just new milestones in defence production and exports but also the rising global stature of ‘Made in India’ platforms.

Defence Minister Rajnath Singh speaking at a meeting with flags of India and ASEAN in the background.
File Photo: India’s Defence Minister Rajnath Singh addressing a meeting in this undated image. Credit: PIB

New Mini Jewels of Indian State-Run Defence Producers

The event also saw four DPSUs — Hindustan Shipyard Limited (HSL), Munitions India Limited (MIL), Armoured Vehicles Nigam Limited (AVNL), and India Optel Limited (IOL) — being conferred Miniratna (Category-I) status. Ratna in the Indian languages means ‘Gem’ or ‘Jewel’.

The recognition, Singh noted, symbolises their increasing efficiency, autonomy, and innovation. It also empowers them to pursue capacity expansion, modernisation, joint ventures, and global collaborations with both public and private sector partners.

Rajnath Singh lauded the transformation of the Ordnance Factory Board into seven DPSUs in 2021, calling it a “turning point that brought agility, competitiveness, and innovation” into India’s defence industry.

He urged all DPSUs to focus on rapid indigenisation of critical technologies, research and development, product quality, and timely deliveries, while setting measurable milestones for indigenisation and R&D for the next review cycle.

MoUs, Collaboration Among DPSUs

Three major Memorandums of Understanding (MoUs) were signed during the event, reinforcing the spirit of collaboration and self-reliance.

Hindustan Aeronautics Limited (HAL) and Bharat Dynamics Limited (BDL) inked agreements with Yantra India Limited (YIL) to set up a 10,000-ton Forging Press facility, reducing import dependency for aluminium alloys vital to aerospace and defence.

HAL committed an interest-free advance of INR 435 crore (USD 50 million), while BDL assured a 10-year workload of up to 3,000 metric tonnes.

Another MoU was signed to establish a Metal Bank at MIDHANI to ensure uninterrupted access to critical raw materials for key national defence projects.

HAL’s New R&D Manual Released

In another major development, Singh launched the HAL Research and Development (R&D) Manual and the R&D Roadmap of DPSUs, signalling a strategic shift from licensed production to indigenous design and development.

These initiatives aim to strengthen India’s R&D ecosystem through digitisation, intellectual property creation, and academia-industry collaboration, marking a decisive step toward technological self-sufficiency.

Indian Defence Industries’ Green Push

Sustainability also emerged as a key focus area, with the defence minister unveiling SWAYAM (Sustainable and Green Defence Manufacturing), a comprehensive compendium capturing the defence sector’s green transition.

Anchored in the Comprehensive Energy Efficiency Action Plan (CEEAP) 2023, it promotes renewable energy adoption, emission reduction, and digital monitoring tools such as the SWARNA Dashboard and DPSU Energy Efficiency Index.

He also felicitated India Optel Limited (IOL) and Bharat Electronics Limited (BEL) for achieving 100% renewable energy usage.

IOL’s transition in Sep. 2025 cut 8,669 tonnes of COโ‚‚ emissions and saved INR 26.36 lakh (USD 30,000) in just one quarter, while BEL became the first ‘Navratna’ (Nine Jewels) DPSU to achieve RE100 certification, reducing its Scope-2 emissions from 15,000 tonnes to zero.

New DPSU Centre in New Delhi

The newly inaugurated DPSU Bhawan, located at the World Trade Centre, Naoroji Nagar, is a state-of-the-art complex envisioned as a collaborative hub for all 16 DPSUs.

Equipped with modern conference rooms, simulation facilities, and an exhibition area, it will serve as a platform to showcase India’s defence capabilities to global stakeholders.

Concluding the event, Rajnath Singh called on the defence industry to move beyond self-reliance to global leadership. “Let us resolve not only to make India self-reliant in defence production but also to establish it as a global manufacturing hub,” he said.

With record-breaking production, expanding exports, and a strong push for sustainability and R&D, India’s DPSUs are fast emerging as the cornerstones of a new era in defence manufacturing, positioning the country firmly on the path toward โ€˜Aatmanirbhar Bharatโ€™ (Self-Reliant India) and global defence competitiveness.

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