Three Indian PSUs among top 100 arms manufacturers in world: SIPRI

In 2022, global sales of arms and military services by the top 100 armament companies reached $597 billion, experiencing a significant surge in demand driven by Russia’s invasion of Ukraine and escalating geopolitical tensions. The Stockholm International Peace Research Institute (SIPRI) released a report recently, revealing that Indian defence public sector undertakings (PSUs) Hindustan Aeronautics (HAL), Bharat Electronics (BEL), and Mazagon Docks (MDL) secured positions in the list of the top 100 arms-producing companies. The list was predominantly dominated by US and Chinese companies. Despite the notable increase in global demand for arms, SIPRI noted a 3.5% decline in the revenues of the top 100 companies in real terms compared to 2021, attributed to production lagging behind the heightened demand. In the rankings, HAL secured the 41st position with $3.4 billion in arms sales, BEL stood at 63rd with $1.9 billion, and MDL was positioned 89th with $1 billion. These rankings reflect the substantial orders placed by the Indian armed forces, totalling 14 lakhs. However, the combined sales of these three Indian companies accounted for only 1% of the global arms sales of $597 billion in the past year. Their revenues will, of course, register a jump soon as the Ministry of Defence on November 30 accorded an initial approval to procure an additional batch of 97 Tejas light combat aircraft and around 150 Prachand helicopters and other equipment for a mega deal worth Rs 2.23 lakh crore to boost the overall combat capability of the armed forces. “Defence Acquisition Council approves capital acquisition proposals worth Rs 2.23 lakh crore to enhance the operational capabilities of the Armed Forces 98 per cent to be sourced from domestic industries in a major boost to ‘Aatmanirbharta’ in defence. Procurement of Light Combat Helicopters & Light Combat Aircraft Mk 1A from HAL gets a nod. Medium Range Anti-Ship Missiles for the surface platform of the Indian Navy accorded approval. Acquisition of Towed Gun System cleared to replace Indian Field Gun,” according to the official statement. Hindustan Aeronautics Limited (HAL) is the domestic supplier of Tejas and Prachanda aircraft. Meanwhile, shares of HAL closed 1.65 per cent higher at Rs 2,382.30 after soaring over 4 per cent intra-day, while Cochin Shipyard ended close to 4 per cent higher at Rs 1,206 apiece on BSE. The development comes amid a crucial meeting scheduled to be held by Defence Minister Rajnath Singh. This project, estimated to cost around Rs 55,000 crore, aims to supplement the existing fleet of 83 Tejas jets.