Domestic firms eye defence sector with focus on import substitution

The ministry of defence has set a goal of $26 billion, including export of $7 billion for the industry by 2025-26 through its Defence Production Policy 2018

Despite a marginal 6 per cent rise in defence allocation for FY21, domestic companies — Jindal Defence and L&T Defence — are actively looking at participating in the defence growth story, currently dominated by imports.

Recently, Larsen & Toubro (L&T) and Europe-based MBDA, a world leader in missile systems, formed a joint venture (JV) to set up a missile integration facility in Tamil Nadu. Delhi-based Jindal Defence, part of O P Jindal Group, also announced its foray into small arms manufacturing in India via a JV with Taurus Armas S A, of Brazil.

“At present, foreign players supply almost 50