R&D, reforms and record profits: What to expect from Rajnath Singh’s Nov 10 review of 16 DPSUs

Rajnath Singh will on November 10 review the performance of all 16 Defence Public Sector Undertakings in Delhi, unveiling HAL’s new R&D manual, a renewable energy report, and a five-year roadmap as India doubles R&D investments and defence exports hit record highs.

Raksha Mantri Rajnath Singh will review the performance of all 16 Defence Public Sector Undertakings (DPSUs) on November 10 in New Delhi, where a fresh roadmap for research, exports, and indigenisation will be unveiled. The high-level meeting, coming as 2025 has been officially declared the ‘Year of Reforms’ by the Ministry of Defence (MoD), is expected to set the tone for India’s next phase of defence manufacturing transformation.

According to a Defence Ministry statement, the review will assess the achievements of DPSUs over the last fiscal and map their five-year strategy for strengthening research and design capabilities. During the event, Singh will also release a compilation of Design and Development (D&D) and Research and Development (R&D) projects carried out over the past decade, alongside the roadmap for 2025–2030.

HAL’s new R&D manual, renewable energy report on agenda

The Defence Minister will unveil the new R&D Manual of Hindustan Aeronautics Limited (HAL), designed to bring greater flexibility, speed, risk assessment, and autonomy to the allocation of R&D projects. The official statement said the manual is aimed at empowering DPSUs to fast-track indigenous design, accelerate prototyping, and reduce bureaucratic delays in innovation cycles.

Singh will also release ‘Swayam’, a first-ever report on renewable energy and energy efficiency across all 16 DPSUs. The document compiles initiatives undertaken under the Department of Defence Production to make defence manufacturing greener and more energy-efficient, from solar rooftops at ordnance factories to power optimisation at shipyards.

R&D investment to double in next five years

The MoD has directed all defence PSUs to increase their investment in R&D as part of the broader push towards technological self-reliance.

Between 2014 and 2024, the DPSUs invested Rs 30,952 crore in R&D. That figure is set to double to Rs 32,766 crore over the next five years, as India focuses on developing advanced platforms and critical technologies domestically.

While much of the earlier R&D investment came from older DPSUs such as Hindustan Aeronautics Limited (HAL), Bharat Electronics Ltd (BEL), and Bharat Dynamics Ltd (BDL), the government said newer units are now catching up.

The seven new DPSUs formed after the corporatisation of the Ordnance Factory Board (OFB) have collectively planned investments exceeding Rs 3,000 crore in R&D, while the defence shipyards, including Mazagon Dock Shipbuilders, Garden Reach Shipbuilders & Engineers, and Goa Shipyard Ltd, have allocated over Rs 1,300 crore.

DPSUs report record turnover, profit and exports

The review comes after an exceptionally strong year for India’s defence PSUs. The combined turnover of all 16 DPSUs in FY25 reached Rs 1.08 lakh crore, a 15.4 percent increase over FY24, while the Profit After Tax (PAT) rose to Rs 20,021 crore, up 19.5 percent year-on-year, the MoD said.

Exports have also seen a historic rise, surging 51 percent in 2024–25, reflecting the growing demand for Indian-made defence systems and components globally. Companies such as BEL, BDL, and HAL have secured new export contracts across Asia, Africa and Latin America, covering avionics, missiles, and radar systems.

The official statement said the sharp rise in export performance demonstrates the success of India’s policy focus on indigenisation and innovation, with several DPSUs now competing internationally on price and reliability.

Setting the tone for India’s defence manufacturing decade

Declaring 2025 as the ‘Year of Reforms’, Rajnath Singh has called on the DPSUs to “prioritise innovation, enhance exports, and deepen indigenisation.”

The MoD has directed the PSUs to expand their in-house research wings, align with startups under the Innovations for Defence Excellence (iDEX) platform, and partner with private industry for co-development of next-generation products.

Statement said the upcoming review is intended to “institutionalise R&D as a core function” within each PSU, marking a shift from Make in India to Innovate in India.