India Invites Global OEMs to Explore Opportunities in Defence Sector
India has invited global Original Equipment Manufacturers (OEMs) to explore investment and collaboration opportunities within its defence sector, emphasizing the need for advanced solutions to address evolving security challenges. The invitation was extended during the CEOs Roundtable at Aero India 2025, held in Bengaluru, Karnataka.
Speaking at the event, Defence Minister Rajnath Singh highlighted the increasing complexity of military communication and data-sharing systems, the integration of space-based assets, and the growing reliance on unmanned and autonomous warfare systems. He stated that India's defence industry must focus on developing countermeasures for these emerging challenges.
Singh outlined various government policies aimed at strengthening the domestic defence manufacturing ecosystem. These include allowing Foreign Direct Investment (FDI) up to 75% through the automatic route for companies seeking a new defence license, with up to 100% permitted under government approval. To date, 46 joint ventures and companies have received foreign investment approvals in the defence sector.
Additionally, Singh noted that over 250 Memorandums of Understanding (MoUs) have been signed for industrial units in the Defence Industrial Corridors in Uttar Pradesh and Tamil Nadu. He also referenced the Defence Testing Infrastructure Scheme, which provides financial assistance for setting up six to eight new testing and certification facilities in the aerospace and defence sector. The Defence Exim Portal has also streamlined the export authorization process. India’s defence exports have reportedly grown 31 times over the past decade compared to the 2013-14 financial year.
The government has issued Positive Indigenization Lists to promote domestic production and reduce reliance on imports. Singh also mentioned that more than 500 startups and small and medium-sized enterprises (SMEs) are engaged in defence innovation projects under the Innovations for Defence Excellence (iDEX) initiative.
The CEOs Roundtable, themed ‘Enabling Defence Cooperation through Global Engagement (EDGE),’ saw participation from defence industry representatives across 19 countries, including the United States, France, Russia, South Korea, the United Kingdom, Japan, Israel, and Brazil. Indian companies such as Larsen & Toubro, Bharat Forge Ltd, Adani Defence & Aerospace, Mahindra Defence Systems Ltd, BrahMos Aerospace, and Ashok Leyland Defence, along with 16 Defence Public Sector Undertakings (DPSUs), were also present.
Several major foreign OEMs, including Airbus (France), Ultra Maritime (USA), GNT (South Korea), John Cockerill Defence (UK), Mitsubishi (Japan), Rafael Advanced Defence Systems (Israel), Safran (France), and Liebherr Aerospace (France), discussed their future plans for collaborations in India. These include joint ventures, partnerships for spare parts production, aero-engine development, Maintenance, Repair, and Overhaul (MRO) facilities, and research and development centers.
The event was attended by senior defence officials, including Chief of Defence Staff General Anil Chauhan, Chief of the Army Staff General Upendra Dwivedi, Chief of the Naval Staff Admiral Dinesh K Tripathi, Chief of the Air Staff Air Chief Marshal AP Singh, Defence Secretary Rajesh Kumar Singh, and other key government representatives.