Tap our defence ecosystem to meet global challenges: Rajnath to CEOs

Defence Minister Rajnath Singh was speaking at the CEOs Roundtable, which he chaired as part of Aero India 2025 in Bengaluru and was attended by over 100 domestic and foreign CEOs

Addressing over 100 domestic and foreign chief executive officers (CEOs) on Monday, Defence Minister Rajnath Singh invited global Original Equipment Manufacturers (OEMs) to seize the opportunities presented by India’s expanding defence ecosystem and develop targeted solutions and countermeasures to tackle challenges arising from the volatile geopolitical landscape. He was speaking at the CEOs Roundtable, which he chaired as part of Aero India 2025 in Bengaluru.

 

The defence minister also outlined the transformative steps taken by the government to position the domestic defence industry as a key pillar of the national economy and support India’s transition from a developing to a developed nation by 2047. These include relaxation in foreign direct investment (FDI) norms and measures to simplify defence and aerospace exports, as well as testing and certification.

 

The theme of the roundtable was 'Enabling Defence Cooperation through Global Engagement (EDGE)'. The event saw participation from OEMs across 19 countries, including the United States (US), France, Russia, South Korea, the United Kingdom (UK), Japan, Israel, and Brazil, along with 35 Indian companies such as Larsen & Toubro, Bharat Forge, Adani Defence & Aerospace, Mahindra Defence Systems, BrahMos Aerospace, and Ashok Leyland Defence, as well as 16 Defence Public Sector Undertakings (DPSUs).

 

Major foreign OEMs, including Airbus (France), Ultra Maritime (US), GNT (South Korea), John Cockerill Defence (UK), Mitsubishi (Japan), Rafael Advanced Defense Systems (Israel), Safran (France), and Liebherr Aerospace (France), outlined their future plans, joint ventures, collaborations, and partnerships with Indian companies. These initiatives focus on spare parts production, aero-engine development, the establishment of maintenance, repair, and overhaul (MRO) facilities, and the creation of research and development (R&D) centres.

 

At the CEOs Roundtable, the defence minister emphasised that the opportunities within the Indian defence ecosystem are driven by policies promoting self-reliance in defence production, supported by a conducive policy framework, according to an official Ministry of Defence (MoD) release. "We have allowed FDI up to 75 per cent through the automatic route for companies seeking a new defence licence, while up to 100 per cent is also allowed under the government approval route. A total of 46 joint ventures and companies have been given foreign investment approval in the defence sector to date," he said.

 

The defence minister noted that India's ease of doing business environment has improved significantly, contributing to the country having the third-largest start-up ecosystem globally, with an expected year-on-year growth of 10-12 per cent. He highlighted India’s highly skilled and adaptable young workforce, which continues to evolve in response to the rapidly changing global landscape. "You must not miss the opportunity to leverage the advantages of this ecosystem," he told the domestic and foreign CEOs participating in the roundtable.

 

Before the roundtable, the defence minister on Monday inaugurated the 15th edition of Aero India, Asia's largest aerospace and defence exhibition, at Yelahanka Air Force Station in Bengaluru, Karnataka. The biennial event, running from February 10 to 14, spans 42,000 square metres and is the largest Aero India to date. More than 900 exhibitors, including 150 foreign companies, are participating.

 

Calling the CEOs Roundtable a platform for advancing India's self-reliance in defence production, fostering global partnerships, and positioning the country as a leading defence manufacturer and service provider, the defence minister highlighted, "As a testimony to the emergence of India as a defence export nucleus, India has seen 31 times growth in the export of products in the last 10 years as compared to financial year 2013-14 (FY14)."

 

On Sunday, he expressed confidence that domestic defence production, having reached a record Rs 1.27 trillion in FY24, will exceed Rs 1.60 trillion by the end of FY26. He also projected that defence exports, which hit a record Rs 21,000 crore, will surpass Rs 30,000 crore.

 

At the roundtable, the defence minister highlighted that over 250 memorandums of understanding (MoUs) have been signed so far for setting up industrial units in the Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu. He spoke about the Defence Testing Infrastructure Scheme, which provides financial assistance to the aerospace and defence sector for establishing six to eight greenfield testing and certification facilities.

 

He also noted that the Defence Exim Portal has streamlined the export authorisation process. Additionally, he stated that over 500 start-ups and micro, small, and medium enterprises (MSMEs) are currently engaged in innovation projects under the Innovations for Defence Excellence (iDEX) initiative.

 

The defence minister also emphasised the need for continuous adaptation and enhancement of solutions in response to the fragile global security landscape, where the rules-based order is under challenge and emerging technologies are creating both opportunities and vulnerabilities. "Our defence manufacturing has to focus on creating counter measures for these emerging challenges," he stressed.

 

Minister of State for Defence Sanjay Seth, Chief of Defence Staff General Anil Chauhan, Chief of the Army Staff General Upendra Dwivedi, Chief of the Naval Staff Admiral Dinesh K. Tripathi, Chief of the Air Staff Air Chief Marshal A.P. Singh, Defence Secretary Rajesh Kumar Singh, Secretary (Defence Production) Sanjeev Kumar, and Secretary (Department of Defence R&D) and DRDO Chairman Samir V. Kamat were among those who attended the CEOs Roundtable.