Rajnath Singh Highlights Challenges and Achievements of Private Defence Sector at SIDM 2024

Defence Minister Rajnath Singh addressed the annual session of the Society of Indian Defence Manufacturers (SIDM) on Friday, shedding light on the challenges and achievements within India’s defense manufacturing sector. Singh emphasized the government’s ongoing efforts to strengthen domestic defense production and highlighted key initiatives that aim to promote self-reliance in the sector.

Indigenisation Lists: A Key Step Towards Self-Reliance

During his address, the minister underscored the significance of the five “indigenisation lists” introduced in October 2023. These lists, developed after extensive consultations with stakeholders in India’s defense ecosystem, identify 509 items to be produced domestically. Additionally, a separate list for Defence Public Sector Undertakings (DPSUs) outlines over 1,000 items slated for local manufacturing.

“This initiative sets a strong foundation for India’s journey toward self-reliance in defense manufacturing,” Singh remarked, highlighting the critical role of domestic industries in meeting these indigenisation goals.

Challenges for the Private Sector Post-Independence

Singh also touched upon the historical challenges faced by India’s private defence sector, citing the “licence raj” and bureaucratic red tape that hindered its growth after independence. He noted that while the mixed economy model adopted by India aimed to balance capitalism and communism, it resulted in fewer opportunities for the private sector.

“The private sector could not participate in the economy as much as expected due to several reasons like shortage of capital and manpower, licence raj, and red-tapism,” he said.

The defence minister also lauded the efforts of DPSUs, which have contributed significantly to domestic defence production. He revealed that India’s total domestic defence production in 2023-24 exceeded ₹1,27,000 crore, with DPSUs generating nearly ₹1,00,000 crore of that figure.

Singh concluded by discussing the global lessons learned from the ongoing Russia-Ukraine war. He stressed that the conflict has underscored the importance of a robust defence industrial base, calling for further expansion in India’s capabilities. “The importance of the defence industrial base remains as crucial as ever, and your role in the new phase of defence industrial development will be extremely important,” he told the SIDM audience.

The event was also attended by key officials, including Sanjeev Kumar, Secretary of the Department of Defence Manufacturing, and General Anil Chauhan, Chief of Defence Staff.