An Overview of Indian Defence Industry

A Transformative Perspective

Abstract

The Indian defence manufacturing sector is largely dominated by the Defence Public Sector Units (DPSUs) and Ordnance Factory Board (OFB), whereas the Research and Development (R&D) sector is solely controlled by the Defence Research and Development Organisation (DRDO). India's defence industry is primarily controlled by the government and its agencies. Though the defence industry was opened up for private domestic players in 2001, so far there has been limited participation of the private sector in the overall defence procurement. India boasts of one of the largest defence industrial bases among the developing nations in the world. Approximately two lakh people are employed in the various defence manufacturing units/laboratories of the government. The key components of India's existing Defence Industrial Base (DIB) are the DPSUs, Ordnance Factories (Ord Fys), DRDO—all functioning under the overall control of the government's Ministry of Defence (MoD)—and a few private sector companies comprising both large and Micro, Small and Medium Enterprises (MSMEs).