Indian defence public sector units facing order shortages

25 March 2020

Several of India's nine Defence Public Sector Units (DPSUs) have warned the federal government in New Delhi about a lack of confirmed equipment orders and the under-utilisation of their costly production facilities.

Official sources told Jane' s that these DPSUs, including three shipyards, recently claimed that the bulk of their manufacturing capability and manpower would be rendered idle over the next2-3 years if they did not imminently receive "firm orders'" from their primary customer: the Indian military.

Senior Ministry of Defence (MoD) officials have pointed out, however, that the armed forces are "severely" resource strapped, adding that their annual INR1.13 trillion (USD15 billion) capital outlay for fiscal year 2020/21 (FY 2020/21) for military modernisation was "grossly inadequate".

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