Defence Ministry Sets Up Panel To Boost Private Sector Participation In Manufacturing Fighter Jets

The Defence Ministry has established a high-level committee to optimise the production of indigenous Light Combat Aircrafts (LCAs) and expand the private sector's involvement in manufacturing fighter jets, according to a report by The Economics Times. 

The move is part of the government's efforts to strengthen Indian Air Force's combat squadrons. 

With a deadline of one month to submit its findings, the committee has been tasked with reviewing the current production capacity, identifying constraints, and assessing the Air Force's requirements, the report said. 

The committee was formed earlier this month by Defence Minister Rajnath Singh and is headed by Defence Secretary Rajesh Kumar Singh, the report said. It also includes representatives from the Indian Air Force and defence manufacturer Hindustan Aeronautics Limited (HAL), including others.

According to the report, the primary objective of this initiative is to expand private sector participation in jet manufacturing.

According to the Global Power Index, the Indian defence sector ranks fourth in terms of firepower with a score of 0.0979 (with 0.0 being the perfect score). The Indian government has set the defence production target at US$ 25 billion by 2025 (including US$ 5 billion from exports by 2025). 

According to the report, the government is considering expanding private sector involvement alongside the ongoing procurement of 97 additional LCA Mk1A jets. With HAL managing an extensive order book of nearly ₹2 lakh crore, private sector participation could play a crucial role in ensuring timely deliveries.

In recent years, the government has launched a series of transformative initiatives to enhance defence production capabilities and achieve self-reliance. These efforts focus on attracting investment, boosting domestic manufacturing, and streamlining procurement processes. By liberalising foreign direct investment (FDI) limits and prioritizing indigenous production, the government demonstrates a strong commitment to strengthening India's defence industrial base.