Defence Secretary Urges Private Sector R&D Investment, Promises Surge in Orders

Rajesh Kumar Singh, Defence Secretary of India, emphasized the critical role of private sector participation and research & development (R&D) investment in driving the next phase of growth in India’s defence sector. Speaking at a Confederation of Indian Industry (CII) event in New Delhi on May 29, Singh highlighted the sector’s current growth trajectory and the need to overcome bottlenecks that hinder private investment.

Highlights:

• Defence sector growing 6–7% annually, mainly driven by government initiatives.

• Private sector participation and R&D investment essential for future growth.

• Defence modernisation budget fully utilised for the first time in years.

• Defence expenditure at 1.9% of GDP, sufficient for current modernisation goals.

Defence Sector at an Inflection Point Amid Calls for Modernisation and Indigenisation

Following recent military conflicts and rising calls for technological advancement, India’s defence ecosystem is poised for transformation. Singh noted the sector is currently supported by strong public sector momentum, but sluggish private investment is limiting further progress. He urged private firms to seize the opportunity presented by a government keen to boost defence manufacturing through streamlined processes.

Highlights:

• Public sector tailwinds driving defence sector growth.

• Private sector investment remains sluggish, hampering progress.

• Modernisation and indigenisation demand cutting-edge technologies.

• Calls for reducing licensing delays, procedural bottlenecks, and red tape.

“We’ll Bury You in Orders” — A Strong Pitch for Private Sector Commitment

Singh issued a direct message to private industry stakeholders, assuring them of robust government procurement support but stressing the need for increased R&D investment from their side. He acknowledged the challenges companies face but emphasized the government’s commitment to easing the business environment and expediting procurement processes.

Highlights:

• Commitment to provide private firms with substantial defence orders.

• Necessity for greater private investment in R&D to meet modernisation needs.

• Government aims to simplify licensing and procurement procedures.

• Emphasis on improving ease of doing business in defence manufacturing.

Atmanirbharta and Technology Disruption Shape India’s Defence Vision

Despite the defence budget being 1.9% of GDP, Singh affirmed it is adequate to achieve modernisation objectives. The government’s long-term strategy is anchored in atmanirbharta (self-reliance), focusing on fostering indigenous capabilities and technological innovation. Singh noted that technological disruptions are transforming warfare and defence manufacturing, underscoring the urgency for India to adapt swiftly.

Highlights:

• Defence spending at 1.9% of GDP remains adequate for modernisation goals.

• Government’s defence vision centers on self-reliance and indigenous development.

• Technological advancements changing the nature of warfare and weapons manufacturing.

• Increased pace of modernisation anticipated following full utilisation of last year’s budget.