In a big boost to India’s defence capabilities, the Ministry of Defence (MoD) has signed contracts worth Rs 697.35 crore. The contracts have been signed with Action Construction Equipment Ltd (ACE) and JCB India Ltd. The agreement facilitates the procurement of 1,868 Rough Terrain Fork Lift Trucks (RTFLTs). These procurements are going to enhance the logistical and operational efficiency of the Indian Army, Air Force, and Navy.
Signed in the presence of Defence Secretary R K Singh, the contract falls under the ‘Buy (Indian)’ category. The defence ministry has done to reinforce the country’s indigenous defence manufacturing ecosystem. The RTFLTs are absolutely critical for combat and logistical support of any military. These will enable the armed forces to handle stores efficiently, reducing manual labour and improving operational effectiveness.
This initiative aligns with the Indian government’s ‘Aatmanirbhar Bharat’ (Self-Reliant India) mission. It aims to bolster domestic production and reduce dependence on foreign imports. The project is set to generate direct and indirect employment, particularly benefiting MSMEs engaged in component manufacturing.
In a parallel development, the Defence Ministry also inked a Rs 1,220.12 crore contract with Bharat Electronics Limited (BEL) for 149 Software-Defined Radios (SDRs) for the Indian Coast Guard. These advanced radios will enhance secure, high-speed data sharing, voice communication, and situational awareness in maritime security operations.
Following the announcement, shares of ACE surged by 4.19% to Rs 1,244.85, while BEL stocks saw a 2.68% rise to Rs 260.20 on the Bombay Stock Exchange.
With India’s defence production valued at Rs 1,26,887 crore and exports reaching a record Rs 21,083 crore in 2023-24, these agreements mark another milestone in the country’s journey towards self-reliance in defence manufacturing and modernisation.
India’s defence industry is going big on the Aatmanirbhar Bharat initiative, focusing on self-reliance in manufacturing. The government has introduced policy reforms, including FDI liberalisation, defence procurement prioritisation, and indigenous R&D incentives, to reduce reliance on imports. Major deals, such as the Rs 697.35 crore contract for RTFLTs and the Rs 1,220.12 crore deal for SDRs, highlight India’s commitment to strengthening domestic production. Defence exports hit Rs 21,083 crore in 2023-24, a 32.5% increase. With major investments in MSMEs, start-ups, and defence hubs, India is emerging as a global defence manufacturing powerhouse.
