250 MoUs Signed for Defence Industrial Units in UP & TN to Strengthen India’s Defence Sector

250 MoUs Signed for Defence Industrial Units in UP & TN to Strengthen India’s Defence Sector

India’s defence capabilities and industrialisation, over 250 Memorandums of Understanding (MoUs) were recently signed for setting up industrial units in the defence industrial corridors in Uttar Pradesh and Tamil Nadu. The announcement was made by Defence Minister Rajnath Singh at the CEOs Roundtable during Aero India 2025, held at Yelahanka Air Force Station in Bengaluru.

Defence Minister Rajnath Singh lauded the government’s ongoing initiatives aimed at transforming India’s defence sector, which is poised for substantial growth. Highlighting the role of the newly established defence industrial corridors in Uttar Pradesh and Tamil Nadu, Singh said that the MoUs reflect a clear commitment to strengthening India’s position as a global defence manufacturing hub. The signing of these MoUs marks an important milestone in the government’s vision to develop world-class defence infrastructure. A key initiative to support this growth is the Defence Testing Infrastructure Scheme, designed to establish greenfield testing and certification facilities across these two corridors. The government aims to set up six to eight such facilities, with financial assistance provided to make these plans a reality. The Defence Minister encouraged global Original Equipment Manufacturers (OEMs) to capitalise on India’s expanding defence ecosystem, underlining that the country is opening its doors to international collaboration and investment.

India’s defence exports have experienced remarkable growth, expanding 31 times in the past decade compared to FY 2013-14. Singh pointed to the success of the Defence Exim Portal, which has streamlined the export authorisation process, making it easier for manufacturers to engage in global trade. In line with this progress, the government has introduced policies to attract Foreign Direct Investment (FDI) into the defence sector. These policies allow for up to 75% FDI under the automatic route for new defence licences, with the potential for 100% FDI under the government approval route. To date, 46 joint ventures and companies have already received foreign investment approvals. Another key aspect of India’s defence transformation is the Positive Indigenisation Lists, which mandate a phased replacement of imported defence equipment with domestically produced alternatives. Singh emphasised the importance of reducing the country’s dependency on foreign imports while simultaneously boosting the domestic industry’s capacity to meet the country’s defence needs. Over 500 start-ups and MSMEs are already engaged in defence innovation through the Innovations for Defence Excellence (iDEX) initiative, which continues to grow as the sector becomes more robust and self-sufficient.

India’s rapidly expanding start-up ecosystem, now the third largest in the world, was also a focal point of the discussions at the CEOs Roundtable. Singh encouraged CEOs from across the globe to leverage India’s highly skilled workforce and its thriving start-up ecosystem, which is growing at a rate of 10-12% annually. With over 100 CEOs from 19 countries in attendance, including the US, France, Russia, South Korea, UK, Japan, Israel, and Brazil, India showcased its potential as a destination for global defence collaborations and manufacturing. The event underscored India’s ambition to become a global hub for defence manufacturing and exports. Leading Indian companies, such as Larsen & Toubro, Bharat Forge, Adani Defence & Aerospace, Mahindra Defence Systems, BrahMos Aerospace, and Ashok Leyland Defence, alongside 16 Defence Public Sector Undertakings (DPSUs), participated in the roundtable. Their participation, along with global OEMs, signals India’s growing prominence in the global defence ecosystem.