Defence PSUs enter global top 100 arms makers despite low sales share

Defence PSUs ranked among the global top 100 arms makers have gained international visibility even though their combined global sales share remains limited. The main keyword defence PSUs ranked frames the broader story of India’s growing presence in the global defence manufacturing landscape.

Indian defence PSUs gain recognition in global rankings
Several Indian defence public sector undertakings have appeared in the global top 100 list of arms manufacturers, marking a milestone for the country’s defence industry. The subhead includes the secondary keyword defence production capability. Companies such as Hindustan Aeronautics Limited, Bharat Electronics Limited and the combined ordnance manufacturing entities continue to hold positions in the lower half of the ranking. Their inclusion reflects steady revenue growth, increased output for domestic needs and gradual expansion into export markets.

Global rankings are typically based on annual defence revenue. Indian PSUs benefit from consistent orders placed by the Ministry of Defence, which remains their primary customer. While they do not command large market shares internationally, their domestic scale ensures they retain a place among established global manufacturers. This year’s ranking shows India’s public sector entities maintaining their presence, supported by rising domestic defence allocations and accelerated procurement cycles.

Why global sales share remains comparatively low for Indian PSUs
Despite being on the list, India’s share in global defence sales continues to be limited. The subhead integrates the secondary keyword export performance. The reason is structural. Indian PSUs historically focused on meeting domestic requirements, leaving limited resources for aggressive export campaigns. The global defence market is highly competitive, dominated by companies with decades of export partnerships, extensive product portfolios and technological depth.

Indian firms often produce equipment tailored to domestic operational needs, including aircraft, radars, communication systems and land platforms built to meet Indian armed forces specifications. This customisation makes exports possible but not always scalable. Additionally, Indian PSUs have only recently begun expanding into promotional activities, joint development programs and after sales support frameworks that foreign customers expect. These factors collectively keep their global revenue share low despite healthy domestic business.

Regulatory processes and long approval cycles also influenced export growth in previous years. Recent reforms have streamlined licensing and marketing procedures, which may help future global positioning.

Government reforms drive a stronger push toward defence manufacturing
The government has launched several initiatives to increase domestic production through the public sector. The subhead includes secondary keywords defence reform and Make in India. Strategic policies encourage greater localisation of components, increased collaboration with private firms and rising participation in research programs. New procurement categories prioritise domestic suppliers when equipment meets operational requirements.

Indigenisation targets have pushed PSUs to expand production lines and invest in capacity building. HAL continues to scale production of transport and fighter aircraft variants, while BEL has expanded its electronics and defence communication portfolio. These developments strengthen the domestic ecosystem, ensuring that Indian PSUs maintain stable revenue flows even if export performance remains modest.

The government’s goal of making India a defence manufacturing hub includes boosting exports to emerging markets in Asia, Africa and Latin America. To support this shift, defence PSUs have been encouraged to form partnerships, participate in international defence expos and set up marketing offices to widen their presence.

Growing technological capability but need for deeper innovation
Indian PSUs have improved their technological capability over the past decade. The subhead integrates the secondary keyword indigenous systems. Advancements include work in avionics, missile support systems, radars, advanced electronics and naval components. Indigenous programs such as the Light Combat Aircraft, Akash missile systems, battlefield radars and command and control platforms demonstrate rising competence.

However, the global arms market is driven by high end innovation, rapid technology cycles and complex integrated systems. Indian PSUs still face challenges in scaling R&D output to match global leaders. Collaboration with private industry, start ups and academic institutions has increased, but the pace of technology absorption remains gradual. To gain higher global market share, Indian PSUs must expand their R&D investment, accelerate product modernisation and engage in more joint development with international partners.

Another factor influencing competitiveness is production speed. Global buyers expect faster delivery timelines, and while Indian PSUs have improved output, order execution times still need optimisation to compete in fast moving markets.

Future outlook for India’s position in global defence rankings
The presence of Indian PSUs in the global top 100 is expected to remain consistent in the near term. The subhead includes the secondary keyword defence export growth. As domestic procurement expands under long term modernisation plans, annual revenues for PSUs will continue rising. Export figures may gradually increase as more countries evaluate Indian systems for cost effective and reliable defence solutions.

India’s efforts to build a larger defence industrial base, including policies that support private industry participation, could diversify the country’s presence in future global rankings. If private manufacturers scale their operations successfully, India may see a mix of public and private entities appearing in global lists. Meanwhile, PSUs remain central players due to their production capacity and established supply chains.

In the long run, India’s share in global arms exports will depend on sustained investment in advanced platforms, efficient delivery timelines and deeper integration with the global defence ecosystem. The current ranking reflects steady progress but also highlights the distance between India’s domestic strength and its international market influence.

Takeaways
Indian defence PSUs secured positions in the global top 100 arms makers.
Their global sales share remains low due to limited export scale.
Government reforms and indigenisation programs are strengthening domestic capability.
Future growth depends on innovation, R&D expansion and faster delivery cycles.

FAQs

Why did Indian PSUs make it to the global top 100 arms makers list?
They made the list because their domestic defence revenue is substantial, supported by consistent orders from the Indian armed forces.

Why is their global sales share still low?
Historical focus on domestic needs, limited export infrastructure and highly competitive international markets keep their global share modest.

What reforms are helping PSUs expand production?
Government policies promoting indigenisation, streamlined procurement and collaboration with private firms are improving production capacity and output.

Can Indian PSUs increase their global ranking in the future?
Yes, with stronger exports, better delivery timelines and continuous technological upgrades, they can raise their global standing.