Dr. S. Samuel C. Rajiv, Research Fellow, Defence Economics and Industry Centre, Manohar Parrikar Institute for Defence Studies and Analyses (MP-IDSA), spoke on ‘The Private Sector and Defence Exports: Report on Field Visit to Hyderabad-based Companies’ at the Monday Morning Meeting held on 05 May 2025. The session was chaired by Dr. Shayesta Nishat Ahmed, Research Analyst, Defence Economics and Industry Centre, MP-IDSA. Scholars of the Institute attended the meeting.

Executive Summary

The session provided an analysis of India’s defence export landscape. It focused on the private sector defence joint ventures (JVs) and their role in defence exports. It was based on Dr. Rajiv’s recent field visit to some of the Hyderabad-based defence companies. The presentation gave company and export profiles of Tata Advanced Systems Limited (TASL), Zen Technologies Limited as well as Safran Electrical and Power India Limited.

Detailed Report

In her opening remarks, Dr. Shayesta provided a brief overview on the current state of private sector defence exports propelled by policy changes and strategic necessity. She mentioned that in 2024-25, India’s defence exports reached INR 23,622 crore, marking a rise from the previous year, out of which over 64 per cent was from the private sector. The aim of the government is to achieve INR 50,000 crore in defence exports and INR 300,000 crore in overall defence production by 2029. The private sector’s current over 20 per cent share in defence production, therefore, is expected to expand further.

Dr. S. Samuel C. Rajiv opened his presentation with a brief summary of India’s total defence exports in the past decade (2015-25) and private sector share in them. He noted that the number of defence export authorisations have risen from 241 in 2015-16 to 1762 in 2024-25. He then gave the company profiles of Tata Advanced Systems Limited (TASL), Zen Technologies Limited and Safran Electrical and Power India Limited.

TASL was established in 2006 and has several JVs and subsidiaries. It has 4 clusters encompassing commercial and military aero structure programmes, airborne platforms and systems, defence and security and land mobility systems. TASL has collaborations with major foreign original equipment manufacturers (OEMs) and Indian entities such as Hindustan Aeronautics Limited.

TASL makes aircraft parts for commercial aircraft such as Boeing 787 Dreamliner, Boeing 737, Boeing 777, Airbus A330 and A among others. As part of the military programmes, TASL makes aircraft parts for military aircraft such as Boeing CH-47, the F-16 fighter aircraft, Boeing Apache AH-64 helicopters, Airbus 400M transport aircraft, and the Light Combat Aircraft (LCA) Tejas. The author also gave details of the work of the other key clusters of TASL.

The next company analysed was Zen Technologies Ltd. It is a defence training and anti-drone solution provider since 1993. It has a wide range of virtual simulators being used by the Indian armed forces, central armed police forces (CAPFs) as well as the armed forces of other countries. Zen Technologies has a significant focus on research and development (R&D). The company had revenues of INR 1402 crore in 2023-24.

Dr. Rajiv highlighted that the defence offsets policy has played a role in contributing to the exports pie. India, for instance, procured the Apache H-64 helicopters from the US, which are also equipped with Stinger missiles. TASL established an Export Oriented Unit (EOU) to make parts for the Stinger missiles for the US original equipment manufacturer (OEM) Raytheon. Similarly, as part of the Rafale aircraft deal, the defence JVs that have been established include Dassault Reliance Aerospace Limited (DRAL), Thales Reliance Defence Systems Ltd (TRDSL) and L&T MBDA Missiles Systems Ltd. Dr. Rajiv gave pertinent details on the work of these JVs.

Dr. Rajiv concluded his presentation by stating that even as JVs will continue to contribute to the exports pie, the Indian private sector defence companies are securing significant export orders. The Kalyani Strategic Systems Limited (KSSL), for instance, had exports of over INR 1400 crore in 2023-24. While India’s defence exports in 2024-25 stood at Rs. 23,622 crore, the presenter noted that the defence exports target for 2028-29 is Rs. 50,000 crore. The presenter expressed confidence that given the increasingly robust defence industrial ecosystem, these targets and more can be achieved.

Questions and Comments

Following the presentation, the floor was opened for questions and comments. Discussions pertained to the R&D profile of the Indian private sector defence companies, among other aspects. Queries were raised as to the investments of the JVs also in R&D. Dr. Rajiv highlighted that companies such as Zen Technologies were spending significantly on R&D. TASL has established Centres of Excellence where cutting edge equipment and material are being used to make critical aircraft parts. It was also pointed out from the floor that in the US, the government significantly funds defence R&D, along with the investments of the private sector on this aspect.

As for the challenges and risks for the private sector defence companies, Dr. Rajiv highlighted that some of the smaller companies had limited customer base and there was less geographical diversification as well. Attention was drawn to the strengthening of the defence industrial ecosystem and the role of the Medium, Micro and Small Enterprises (MSMEs) through a series of policy measures taken by the government over the last few years. The economic spill over and employment generation aspect was also flagged in the discussions.

The report was prepared by Ms. Anika Vipulpriya, Intern, Military Affairs Centre, MP-IDSA.