Be truthful about indigenous content in military equipment: CDS to pvt industry

Chief of Defence Staff Gen Anil Chauhan has urged private defence manufacturers to be “truthful” about the level of indigenous content in their military equipment and cautioned them against “over-promising” on delivery timelines, noting that several firms have failed to meet commitments.

Gen Chauhan was speaking at a ‘brainstorming’ session with the Society of Indian Defence Manufacturers (SIDM) at the Manekshaw Centre here on Friday.

“Most people have over-promised and then failed to deliver within the given timeframe. This is unacceptable. Defence is not a one-way street. Industry must be honest about its capabilities,” he said.

“You cannot leave us in the lurch by signing a contract and then not delivering on time. You have to be truthful about your indigenous capabilities. Some of these issues could have security implications,” he added.

The CDS noted that in some cases, equipment claimed to be 70 per cent indigenous was later found to have far lower domestic content.

The session, themed ‘Leveraging the Defence Industry Ecosystem for Future Warfare’, was hosted by the Ministry of Defence to assess which future technologies the Indian private sector can deliver. The ministry is looking to identify growth opportunities for industry and shape clearer development pathways.

Deliberations focused on critical domains for future warfare, including ammunition, explosives, autonomous systems and R&D in next-generation technologies. The event also addressed priority challenges.

The MoD’s increasing shift towards private participation is evident. In recent months, three marquee projects have been opened to private industry: the fifth-generation Advanced Medium Combat Aircraft (AMCA), the Medium Transport Aircraft and the next-generation warships called the landing platform dock. Private firms can partner and bid for all three.

Until now, defence public sector undertakings (DPSUs) have accounted for the bulk of domestic defence production.

India’s annual defence production touched an all-time high of Rs 1,50,590 crore in 2024-25. DPSUs and other PSUs contributed roughly 77 per cent of this output, while the private sector accounted for 23 per cent. Production by DPSUs and private companies rose by 16 per cent and 28 per cent, respectively, in 2024-25.

Efforts to reduce import dependence and build a defence industrial base that meets domestic needs while boosting export potential have begun to show results.

India recorded defence exports worth Rs 23,622 crore in the fiscal year ending March 31, 2025. Of this, the private sector contributed Rs 15,233 crore and the DPSUs Rs 8,389 crore.