By South China Morning Post | Created at 2026-06-24 03:06:59 | Updated at 2026-06-24 05:03:42
2 hours ago
India’s private defence companies are poised to expand their footprint in the sector, but analysts warn they still lack the technology and capabilities needed to produce cutting-edge weapons for the country’s military or export markets.
In the 2025-26 financial year, the private sector accounted for 24 per cent of India’s defence output, or US$4.4 billion out of a record US$18.7 billion, according to a defence ministry statement released last week.
The figures reflect a gradual shift away from a sector long dominated by state-owned manufacturers, with private firms contributing more to drones, surveillance systems, ammunition and components.
Defence Minister Rajnath Singh hailed the record output on social media, attributing it to “sustained policy support, several new initiatives, increased private sector participation and growing export capabilities”.
Yet the headline numbers do not tell the full story, according to Rahul Wankhede, a research analyst at the Manohar Parrikar Institute for Defence Studies and Analyses in New Delhi, who said private companies were still complementing, rather than displacing, state-owned manufacturers.
“India’s armed forces need everything from basic equipment and components to highly complex systems such as aero-engines, advanced sensors, missiles, aircraft and submarines. In many of these critical technology areas, India still depends either on the public sector, DRDO-led development, foreign technology collaboration or a combination of all three,” he said, adding that it would be premature to suggest private firms could meet the full spectrum of military requirements.
