BS Manthan: Can private firms drive India's defence self-reliance?

Can private firms drive India's defence self-reliance? BS Manthan brings top experts to discuss policy reforms, industry innovation, and the future of military technology

India’s defence sector is undergoing a major transformation, with the private industry playing a bigger role than ever in strengthening national security. As global politics shift and modern warfare evolves, innovation and collaboration between India’s armed forces and private companies have become essential.

 

To discuss this crucial partnership, top defence experts will come together for a panel discussion titled “Defence and Private Sector: Collaboration and Coordination” at the second annual BS Manthan summit, hosted by Business Standard.

 

The two-day event from February 27-28 at the Taj Palace, New Delhi, comes at a key moment as India pushes for self-reliance in military technology and equipment. The panel will feature Admiral (Retd) R Hari Kumar, former chief of Naval Staff; Rajinder Singh Bhatia, chairman, Defence Business, Kalyani Group; and Samir V Kamat, secretary, Department of Defence R&D, Ministry of Defence & chairman, DRDO.

 

 

India’s defence sector enters a new era

 

India’s defence sector is changing rapidly, with record exports, large-scale local manufacturing, and strong partnerships between the government and private companies. The Defence Production Policy 2020, Make in India, and the iDEX (Innovations for Defence Excellence) initiative have significantly boosted private participation, leading to increased R&D investments and technological advancements.

 

As the government pushes for 50 per cent self-reliance in defence procurement by 2030, major private players— ranging from established firms like L&T Defence, Tata Advanced Systems, Bharat Forge, and Adani Defence to agile startups specialising in UAVs, cybersecurity, and AI-driven defence systems— are stepping up to meet the demand. 

 

With a defence budget of over Rs 6.81 lakh crore for 2025, the private sector is being entrusted with more high-value defence contracts, including fighter jet components, missile systems, warships, and unmanned aerial vehicles (UAVs).

 

Strengthening R&D, innovation, and exports

 

One of the most promising aspects of public-private collaboration in defence is the emergence of homegrown technologies in critical areas like hypersonic weapons, quantum computing, electronic warfare, and cybersecurity. The Defence Research and Development Organisation (DRDO) is increasingly engaging with private industry to co-develop next-generation platforms, while private firms are setting up independent R&D centres to cater to both domestic and global markets.

 

India’s defence exports have also surged, crossing Rs 20,000 crore ($2.4 billion) in FY 2024, with a growing demand for Indian-built BrahMos missiles, artillery guns, and radar systems in Southeast Asia, the Middle East, and Latin America. As India eyes a $5 billion defence export target by 2025, partnerships between private defence manufacturers and foreign OEMs will be crucial in expanding the nation’s global footprint.

 

Boosting private sector role in defence manufacturing

 

With the government actively encouraging private investment, defence production is no longer the sole domain of public-sector undertakings. Several key policy reforms, including simplified FDI regulations, defence industrial corridors, and liberalised procurement processes, have enabled private players to take on large-scale defence contracts.

 

Initiatives such as the SP (Strategic Partnership) model under the Defence Acquisition Procedure (DAP) 2020 and the Make-II framework have also opened doors for private firms to manufacture critical platforms like submarines, helicopters, and advanced weapon systems in collaboration with global defence majors.

 

All about BS Manthan

 

Launched in 2024, BS Manthan has quickly become a premier platform for thought leaders in business, policy, and industry to engage in high-impact discussions. Now, in its second edition, the summit continues to drive strategic conversations on India’s most pressing challenges and opportunities.

 

With private sector participation in defence at an inflection point, the panel discussion on February 27 is set to offer invaluable insights into how India can leverage its industrial capabilities, harness innovation, and solidify its position as a global defence powerhouse.