The government recently conducted a comprehensive review of the functioning and performance of all sixteen defence public sector undertakings (DPSUs). This assessment focused on key parameters such as turnover, profit margins, efforts towards indigenisation, and plans for research and development.

The objective was to gauge progress in achieving self-reliance in defence manufacturing and to identify areas requiring attention.

The Minister of State for Defence, Sanjay Seth, informed the Lok Sabha that this review took place on 10 November 2025 as part of the government’s routine monitoring process.

The meeting aimed to evaluate the DPSUs’ advancement in enhancing indigenous capabilities and boosting export potential, thereby strengthening India’s defence sector in alignment with national strategic goals.

Sanjay Seth reiterated the government's "strong and explicit" commitment to developing indigenous military hardware. This is being pursued through extensive research and development efforts aligned with the broader "Aatmanirbhar Bharat" initiative. The focus remains on fostering self-reliance by promoting domestic innovation, design, and production of defence systems and equipment.

Despite the absence of a dedicated budgetary allocation exclusively for research and development within DPSUs, these organisations allocate funds from their own earnings to support R&D activities. This approach allows them to address immediate needs and seize market opportunities, ensuring continuous technological advancement without relying solely on external funding.

The review also underscored the importance of ongoing efforts to indigenise defence production. This includes reducing dependency on foreign suppliers and creating a sustainable ecosystem for defence manufacturing within the country. The government recognises that bolstering indigenous capabilities is crucial for strategic autonomy and national security.

To strengthen the overall performance of DPSUs, the government is considering proposals and action plans derived from the review findings.

While specific interventions have not been detailed publicly, the aim is to enhance efficiency, boost innovation, and improve financial outcomes. This will help ensure that DPSUs remain competitive and aligned with evolving defence requirements.

The government remains firmly committed to advancing the capabilities of DPSUs through rigorous evaluation, increased self-reliance, and focused development efforts. These steps are vital to securing India’s defence interests and achieving long-term sustainability in military hardware production.

Based On PTI Report