250 MoUs inked for setting up industrial units in defence industrial corridors in UP & TN.

Defence Minister Rajnath Singh announced recently that more than 250 Memorandums of Understanding (MoUs) have been signed for setting up industrial units in the defence industrial corridors of Uttar Pradesh and Tamil Nadu.

Speaking at the CEOs Roundtable at Aero India 2025, held at Yelahanka Air Force Station, Singh highlighted the government’s initiatives to strengthen India's defence sector. He also introduced the Defence Testing Infrastructure Scheme, which will provide financial assistance to establish 6-8 greenfield testing and certification facilities in the two corridors.

Singh invited global Original Equipment Manufacturers (OEMs) to capitalize on India’s expanding defence ecosystem, noting the success of the Defence Exim Portal, which has streamlined the export authorization process. He pointed out that India’s defence exports have grown 31 times in the past decade, compared to FY 2013-14.

Boosting Domestic Defence Industry

The Defence Minister emphasized transformative steps taken to position India's domestic defence industry as a crucial pillar of the national economy. He outlined policies to attract Foreign Direct Investment (FDI), allowing up to 75% FDI under the automatic route for new defence licenses and up to 100% under the government approval route. So far, 46 joint ventures and companies have received foreign investment approvals in the defence sector.

To reduce import dependency, Singh highlighted the Positive Indigenisation Lists, which mandate the phased replacement of imported defence equipment with domestically produced alternatives. He also noted that over 500 start-ups and MSMEs are currently engaged in defence innovation through the Innovations for Defence Excellence (iDEX) initiative.

Global Participation at Aero India 2025

Addressing an audience of over 100 CEOs, both domestic and foreign, Singh encouraged them to leverage India's young, highly skilled workforce and its rapidly growing start-up ecosystem, now the third largest in the world. He projected that this ecosystem will continue to expand at an annual rate of 10-12%.

The CEOs Roundtable, themed "Enabling Defence Cooperation through Global Engagement (EDGE)," saw participation from OEMs across 19 countries, including the US, France, Russia, South Korea, UK, Japan, Israel, and Brazil. Leading Indian companies such as Larsen & Toubro, Bharat Forge, Adani Defence & Aerospace, Mahindra Defence Systems, BrahMos Aerospace, and Ashok Leyland Defence also took part, along with 16 Defence Public Sector Undertakings (DPSUs).

The event underscored India's push for self-reliance in defence and its ambition to emerge as a global hub for defence manufacturing and exports.

HBL