Defence PSUs Performance Review Meeting

Defence Public Sector Undertakings (PSUs) Review Highlights

1. Ministerial Review:

   • On September 1, 2026, Union Defence Minister Rajnath Singh conducted a performance review of all 16 defence PSUs.
   • Calls made for reducing import dependence, enhancing R&D capabilities, and ensuring the timely delivery of major projects.

2. Performance Metrics:

   • Defence PSUs collectively contributed ₹1.29 lakh crore to India's total defence production of ₹1.8 lakh crore during 2025-26.
   • Dividend payout to the government: ₹3,951 crore presented by seven PSUs.

3. Strategic Objectives:

   • Emphasis on developing a robust indigenous defence industrial base to support the vision of "Aatmanirbhar Bharat" (Self-Reliant India).
   • Urgency for timely delivery, reduction of import reliance, enhanced defence exports, and increased productivity through capital expenditure.

4. Economic and Innovation Imperative:

   • Defence PSUs urged to convert R&D investments into technological leadership and improve product quality to meet international standards.
   • The importance of assured supply chains and surge production highlighted as national security necessities.

5. Global Competitiveness:

   • Aiming for a transition where PSUs transform into globally competitive entities under the "Make in India, Make for the World" initiative.
   • Identification of niche technology areas to enhance self-reliance and global leadership potential in defence.

6. Publications Released:

   • Four publications on themes such as self-reliance, indigenisation, innovation, and future defence capabilities have been launched.

7. Policies and Governance:

   • Focus on supporting start-ups and micro, small, and medium enterprises (MSMEs) within the defence sector to foster innovation and growth.
   • Encouragement for establishing operational benchmarks that reflect tangible outcomes from R&D activities, such as new technology and intellectual property developments.

8. Judicial & Constitutional Reference:

   • Not specifically mentioned, but implicitly ties to the constitutional responsibility to ensure national defense (Article 51).

These notes encapsulate the significant outcomes and strategic direction set by the Defence Minister for PSUs, reflecting India's commitment toward enhanced self-reliance and quality improvements in its defence manufacturing sector.