Published on: May 29, 2025 6:12 am
India’s strategic aspirations to become a global defence manufacturing hub cannot succeed without an efficient and reliable domestic defence industry. While India’s defence sector is dominated by state-run public sector undertakings (PSUs), their performance over the decades has raised serious concerns. In today’s rapidly evolving geopolitical landscape, the time has come for India’s defence PSUs to either deliver measurable results—or step aside and allow private players to take the lead.
🚀 Why the Focus on Defence PSUs?
India’s defence PSUs like Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), and others were established with the goal of building a strong indigenous defence ecosystem. They were meant to reduce dependency on foreign imports, boost self-reliance, and support national security.
However, these PSUs have often been criticised for:
- Delayed deliveries
- Cost overruns
- Outdated technology
- Lack of innovation
- Low export capacity
In contrast, countries like South Korea, Turkey, and Israel have rapidly built advanced defence capabilities through innovation, public-private partnerships, and a culture of accountability.
⏱️ Missed Deadlines and Lost Opportunities
India’s armed forces have frequently faced delays in receiving critical defence equipment. Some key examples include:
- Tejas Light Combat Aircraft (HAL): Took over 30 years from concept to deployment.
- Arjun Main Battle Tank (DRDO): Faced several iterations before meeting army expectations.
- Warships & Submarines (MDL, GRSE): Many naval projects exceeded timelines by years.
These delays not only hurt operational readiness but also increase project costs and undermine trust in indigenous systems.
⚙️ Private Sector: The New Hope
In recent years, private companies such as Tata Advanced Systems, Larsen & Toubro (L&T), Mahindra Defence, and Bharat Forge have shown strong potential in defence manufacturing. These companies have:
- Delivered projects on time
- Brought in global collaborations
- Invested heavily in R&D
- Boosted export potential
The Make in India and Atmanirbhar Bharat initiatives have further encouraged private players to enter the defence domain with cutting-edge technology and innovative solutions.
✅ What Needs to Change in the PSU Ecosystem?
To stay relevant and effective, defence PSUs must undergo a serious transformation:
- Strict Timelines and Accountability
Performance-based evaluations must be enforced. Delays and quality lapses should result in real consequences. - Technology-Driven Culture
PSUs must move beyond license manufacturing and invest in true research and development (R&D). - Encouraging Public-Private Partnerships
Collaboration with the private sector can improve efficiency and bring innovation to traditional defence programmes. - Disinvestment or Strategic Restructuring
Non-performing units should be restructured or opened to private investment.
🌍 India’s Global Ambition Depends on Efficiency
India is among the world’s top defence importers. This is a status we must shed if we are to emerge as a true global power. To meet this goal, India must:
- Strengthen its domestic supply chain
- Boost exports of defence equipment
- Build trust among armed forces in indigenous systems
All of this is possible only if defence manufacturing becomes efficient, transparent, and accountable.
🧭 Final Thoughts
India’s security needs are too urgent and critical to be held hostage by inefficiency. Defence PSUs have played a historic role, but now, the future demands faster innovation, better results, and stronger accountability. If PSUs can deliver, they should be empowered to do so. If not, it’s time to make way for private players who can take India’s defence ecosystem to the next level.