Defence PSUs Drive India’s Defence Production to ₹1.51 Lakh Crore: Rajnath Singh.

India’s defence production reached a record ₹1.51 lakh crore in FY25, with Defence Public Sector Undertakings (DPSUs) accounting for 71.6% of the output, Defence Minister Rajnath Singh announced on Monday. The announcement followed a review of the performance of 16 state-owned defence manufacturing units.

The review coincides with the implementation of the revised Defence Procurement Manual (DPM) 2025, which came into effect on November 1, creating a more competitive procurement environment by leveling the playing field for both government and private industry.

Under the new framework, the requirement for a No Objection Certificate (NOC) from state-owned entities before procurement from other sources has been removed. The move is expected to intensify competition for the nine major DPSUs, including Hindustan Aeronautics Ltd (HAL) and Bharat Electronics Ltd (BEL), as well as the seven new companies formed from the Ordnance Factory Board (OFB) in 2021.

The policy aims to boost efficiency, foster private sector participation, and accelerate India’s push toward self-reliance in defence manufacturing.