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Strong defence order books must translate into faster execution: Parl panel
The robust order books of defence public sector undertakings must translate into timely execution of projects, adherence to delivery schedules, and sustained expansion of manufacturing capabilities, a parliamentary panel has told the defence ministry
The robust order books of defence public sector undertakings must translate into timely execution of projects, adherence to delivery schedules, and sustained expansion of manufacturing capabilities, a parliamentary panel has told the defence ministry.
The Parliamentary Standing Committee on Defence made the observation in its latest report after reviewing the performance and order books of nine DPSUs, including Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL), with combined orders worth ₹4,50,452 crore as on March 31, 2026.
It said the ministry’s department of defence production must continue to facilitate the acquisition of advanced technologies, foreign market expansion, and greater product diversification by all DPSUs. It should “also closely monitor the implementation of contracts so that the operational and financial performance of all DPSUs is further improved in support of the nation’s defence preparedness and the vision of Atmanirbhar Bharat.”
HAL has the largest order book among DPSUs at ₹2,51,043 crore, followed by BEL at ₹74,000 crore, Garden Reach Shipbuilders & Engineers Ltd at ₹31,700 crore, Bharat Dynamics Ltd at ₹24,408 crore and Mazagon Dock Shipbuilders Ltd (MDL) at ₹20,582 crore.
The ministry told the panel that MDL last year acquired a controlling stake in Sri Lanka’s largest and most established shipyard, Colombo Dockyard PLC, in a deal valued at ₹452 crore. Colombo Dockyard has over five decades of experience in shipbuilding, ship repair, and heavy engineering.
The committee hailed the shipyard’s foray into the global market, and asked the ministry to share “details and efforts of other DPSUs’ entry into foreign markets” in its action taken statement. The panel has also asked the department to periodically review the effectiveness of the ease of doing business (EoDB) reforms of all DPSUs, identify procedural bottlenecks, and take steps to help them boost defence exports.
“The committee is glad to note the department’s efforts to speed up (their entry into) new foreign markets through diplomatic outreach, and high-level engagements. However, the committee is of the view that these initiatives should translate into a more balanced growth in exports across all DPSUs, particularly those whose export performance continues to remain relatively modest,” said the report tabled in Parliament on August 6.
Boosting defence exports is a key government priority. India’s defence exports hit a record ₹38,424 crore in 2025-26, up 63% from ₹23,622 crore in the previous financial year.
DPSUs accounted for 54.84% of defence exports in 2025-26, while the private sector contributed the remaining 45.16%. Official data shows that DPSU exports jumped 151% over the previous year, while private firms recorded a 14% increase. The private sector accounted for ₹17,353 crore worth of defence exports, while DPSUs contributed ₹21,071 crore. Their respective figures in the previous financial year stood at ₹15,233 crore and ₹8,389 crore.
This rise, the defence ministry earlier said, highlighted the increasing global acceptance of India-made defence products and the sector’s growing integration into the international supply chains. The number of exporters increased from 128 to 145 in FY 2025-26. India’s arms imports fell 4% between 2016-20 and 2021-25, but the country remains the world’s second largest importer of military hardware, accounting for 8.2% of global weapon imports, according to a Stockholm International Peace Research Institute (SIPRI) report published in March.
