In a major push toward self-reliance in defence technology, India’s 16 defence public sector undertakings (DPSUs) are set to invest over Rs 32,000 crore in research and development (R&D) over the next five years. The ambitious plan aims to accelerate indigenous production of cutting-edge military hardware, reduce import dependency, and strengthen India’s defence manufacturing ecosystem.
Officials confirmed that the projected R&D expenditure of Rs 32,766 crore will be one of the key agenda points during a high-level performance review meeting chaired by Defence Minister Rajnath Singh on Monday (November 10, 2025).
The defence minister has directed all DPSUs to intensify their focus on innovation, exports, and indigenisation, declaring the year 2025 as the ‘Year of Reforms’. He urged them to increase both manpower and funding dedicated to research and development to ensure that India becomes a global hub for defence technology and manufacturing.
Why is 2025 being called the ‘Year of Reforms’?
Defence minister Singh had on the eve of New Year 2025 chaired a meeting with all the Secretaries of the ministry to review the progress on various schemes, projects, reforms and the way ahead. In order to give impetus to the ongoing and future reforms, it was unanimously decided to observe 2025 as the ‘Year of Reforms’ in the MoD.
This was aimed at transforming the Armed Forces into a technologically-advanced combat-ready force capable of multi-domain integrated operations.
In line with this directive, each DPSU has drawn up a five-year R&D roadmap aligned with national defence priorities and the ‘Aatmanirbhar Bharat’ initiative.
How much has been spent on defence R&D so far?
According to the Defence Ministry, the defence PSUs have collectively invested Rs 30,952 crore in R&D over the last decade. The new target represents a near-doubling of pace, a clear indication of India’s intent to move up the defence value chain from manufacturing to innovation.
Traditionally, major players like Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), and Bharat Dynamics Limited (BDL) have accounted for most of the R&D expenditure. However, the new investment strategy aims to spread innovation across all 16 DPSUs, including those formed through recent structural reforms.
Which DPSUs will lead next phase of innovation?
The seven new DPSUs created from the corporatisation of the Ordnance Factory Board are expected to invest over Rs 3,000 crore in R&D. Additionally, India’s defence shipyards have drawn up plans for an investment exceeding Rs 1,300 crore, focusing on next-generation naval platforms, autonomous systems, and green propulsion technologies.
This decentralised push is designed to build specialised capabilities across the defence ecosystem, from aerospace and missile technology to electronic warfare systems and armoured platforms.
Rajnath Singh’s review meeting: What will be unveiled?
At the review in New Delhi, the Defence Minister is expected to release the comprehensive five-year plan outlining the R&D goals of all DPSUs. The meeting will also see the unveiling of ‘Swayam’, a first-of-its-kind report on renewable energy initiatives across defence industries.
The report, compiled under the Department of Defence Production, documents energy efficiency practices being adopted by each DPSU as part of the government’s green defence and sustainability drive.
Additionally, the Defence Ministry lauded the commendable performance of DPSUs in FY 2024–25, reporting a total turnover of Rs 1.08 lakh crore, marking a 15.4% rise over the previous fiscal year. Their combined post-tax profit stood at Rs 20,021 crore, reflecting a 19.5% year-on-year growth.