The session began by exploring the foundations of national strength—Economy, Governance, and Security—and highlighted the evolving nature of modern warfare. Wars today are no longer limited to physical battlefields but span technological, economic, strategic, and psychological fronts. In this context, the importance of self-reliance was emphasized, particularly due to threats like remote switches embedded in imported equipment that can disable usage. India's status as the world’s second-largest arms importer, after being the largest from 2000–2023, underscores the urgency of building domestic capabilities.
Historically, defence manufacturing and exports were tightly controlled, reserved for Defence Public Sector Undertakings (DPSUs) and DRDO, with private participation limited. However, liberalization since 2001 and initiatives like iDEX have started to change the landscape. While defence production has significantly increased—from ₹79,000 crore to ₹1.27 lakh crore—the private sector’s share has plateaued at around 20%. Nevertheless, in defence exports, private companies account for more than 50% consistently, showing their potential in global markets.
The session then delved into the rationale for PPP in the defence sector. With 16 DPSUs, 436 private sector participants, and over 16,000 MSMEs involved, PPPs offer a route to complement public capabilities with private sector agility, innovation, and responsiveness. The GOCO model (Government Owned, Company Operated) was also discussed as a viable structure. Yet, challenges such as slow decision-making, bureaucratic inertia, and lack of customer-centricity were identified as key barriers to collaboration.
To overcome these, several suggestions were made: incorporating customer feedback, moving up the value chain, investing in long-term R\&D, and building 360-degree business relationships. Emphasis was also laid on export orientation and ensuring quality through the principle of "First Time Right"—highlighting that rework is a major project killer and critical assessments must be made upfront. Overall, the session provided a strategic overview of how PPPs can enhance India’s defence self-reliance and global competitiveness. The speaker substantiated his points by citing examples of several projects successfully completed by L&T. These included shipbuilding, development of Light Tank, Pinaka missile system, etc.