The Centre is intensifying efforts to elevate the private sector's contribution to defence manufacturing to 50 per cent in the coming years, Defence Minister Rajnath Singh announced recently. This ambitious target underscores the government's commitment to fostering a robust, self-reliant defence ecosystem under the Atmanirbhar Bharat initiative.

Speaking at a high-profile industry summit in New Delhi, Singh highlighted the transformative potential of private participation in reducing import dependency and bolstering indigenous capabilities.

India's defence sector has long been dominated by public sector undertakings such as Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL).

However, escalating geopolitical tensions along the borders and the need for rapid technological upgrades have necessitated a paradigm shift. The minister emphasised that private firms bring agility, innovation, and efficiency, which are crucial for competing in the global arms market.

Currently, private sector involvement hovers around 20-25 per cent of total defence production, primarily in components and subsystems.

Achieving the 50 per cent mark will require streamlined procurement processes, eased export norms, and enhanced technology transfers. Singh pointed to recent successes like the indigenous TEJAS MK-1A fighter jet and BrahMos missile exports as proof of concept, urging private players to scale up investments.

Key policy enablers include the Strategic Partnership model under Defence Acquisition Procedure 2020, which reserves specific high-tech categories for private entities. Positive indigenisation lists—now exceeding 5,000 items—bar imports, compelling domestic manufacturing. The minister revealed that over ₹5 lakh crore in procurement contracts have been awarded to Indian vendors since 2020, with private firms securing a growing share.

Private giants like TATA Advanced Systems, Larsen & Toubro, Bharat Forge and Adani Defence are already making strides. Tata's production of the C-295 transport aircraft in Vadodara marks a milestone, while L&T delivers advanced artillery systems. Start-ups such as ideaForge and Tonbo Imaging are pioneering UAVs and night-vision tech, injecting cutting-edge R&D into the sector.

Challenges persist, including high initial capital costs, regulatory hurdles, and skill gaps. The government plans to address these through Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu, offering plug-and-play infrastructure. Incentives like 74 per cent FDI under automatic route and iDEX funding for innovators aim to de-risk private investments.

Geopolitically, this push aligns with India's multi-aligned strategy amid threats from China and Pakistan.

Enhanced private production will support exports, targeting $5 billion annually by 2025—a goal already surpassed in FY2024-25. Singh stressed collaborations with global majors like Boeing and Rafael, blending foreign tech with local manufacturing.

The minister called upon industry to invest ₹1.5 lakh crore over five years, promising single-window clearances and priority funding. This vision extends to emerging domains like hypersonics, AI-driven warfare, and space-based assets, where private innovation holds the key.

Critics argue that quality assurance and integration with PSUs remain concerns, but Singh countered with robust testing protocols and joint ventures. Successful models from Israel and the US, where private shares exceed 70 per cent, serve as benchmarks.

As India eyes a $25 billion defence export market by 2030, the 50 per cent private target signals a democratic defence industrial base. This shift not only fortifies national security but also positions India as a global defence manufacturing hub, creating millions of jobs in high-tech sectors.

Agencies