Defence Minister Rajnath Singh will undertake an annual performance review of 16 Defence Public Sector Undertakings (DPSUs) on September 1, 2026, with a focus on advancing indigenous technologies, boosting innovation and enhancing defence exports, according to the Ministry of Defence. The review will be conducted in New Delhi, where the CMDs of seven DPSUs will present dividend cheques to Singh for the government's equity holdings for 2025-26. During the review, Singh will also release four books, including 'Aatmanirbhar DPSU - A journey of DPSUs towards Self-Reliance', which traces the progress of Defence PSUs towards greater self-reliance. The defence ministry emphasized that "a stronger, more self-reliant defence sector is powering India's journey towards technological leadership and global defence capabilities," as reported by PTI.
The performance of Defence PSUs improved across key financial indicators in 2025-26, with their combined turnover standing at ₹1.29 lakh crore, registering a 15.4% increase over the previous financial year. The DPSUs posted a cumulative profit after tax of ₹23,136 crore in 2025-26, up 15.6% from the previous year. The most notable achievement was the sharp increase in defence exports, with DPSUs recording a 151.2% increase in exports compared with the previous financial year. This significant growth underscores the expanding global reach of Indian defence manufacturers and the increasing focus on developing and exporting indigenously produced defence technologies and equipment. India's defence exports hit a record ₹38,424 crore in FY26, up 62.66% from the previous year, with DPSUs accounting for ₹21,071 crore, or nearly 55% of total exports, as reported by the Defence Ministry.
The annual review comes as the government pushes defence public sector companies to expand indigenous production, develop new technologies and increase their presence in overseas markets. The reforms are expected to particularly benefit Indian defence manufacturers and MSMEs. The other publications being released include 'DISHA', an initiative aimed at providing students hands-on awareness of defence technologies and modern manufacturing processes, and HAL's modernisation roadmap and indigenisation roadmap. These initiatives align with the government's broader strategy to enhance India's defence manufacturing capabilities and reduce dependence on imports, with the emphasis on indigenous technologies, modernisation and exports reflecting the broader objective of strengthening India's domestic defence industrial base.
The government last week announced a slew of reforms to simplify defence export procedures, including widening the scope of the Open General Export Licence (OGEL) to cover all countries except sensitive and restricted destinations. Under the revised defence export SOP, stakeholder consultation will no longer be required for exports of non-lethal defence items to most destinations. The government has also consolidated three existing OGEL SOPs covering major platforms and equipment, parts and components, and intra-company transfer of technology into a single unified SOP. The validity of OGEL has been extended to three years from two years, and the coverage has been expanded from 41 countries to all countries, barring negative or sensitive nations and countries facing UN Security Council sanctions or arms embargoes. The Department of Defence Production has introduced these reforms to reduce procedural hurdles and help Indian defence manufacturers access international markets faster while maintaining national security safeguards.
The export push comes alongside record domestic defence production, which rose 15.6% to ₹1.78 lakh crore in FY26. DPSUs and other public sector undertakings accounted for about 76% of the output, demonstrating the critical role of public sector companies in India's defence manufacturing ecosystem. The CMDs of seven DPSUs — HAL, Mazagon Dock Shipbuilders, Bharat Electronics, Bharat Dynamics, Garden Reach Shipbuilders & Engineers, BEML and MIDHANI — will hand over dividend cheques representing the government's equity share for FY26 to Singh. Singh is also expected to outline the DPSUs' self-reliance efforts, defence technology awareness among students, and HAL's modernisation and indigenisation roadmaps, as reported by the Defence Ministry.
