This May, French naval defence company DCNS began constructing the hull of its first India-made Scorpene submarine at Mazgaon Dock in Mumbai. It was a big occasion for the defence PSU but a disappointing one for Larsen & Toubro (L&T), whose offer to be partner in the venture was spurned. Yet, Mumbai-based engineering major L&T is not giving up on its dream of making warships and submarines. It has set aside Rs 2,000 crore to build a shipyard where it can make both military and civilian vessels. And the company says it is determined to have a piece of Indian Navy’s Project 76, which involves buying 24 submarines over the next two decades.

L&T’s optimism is a sign of the times. India’s private sector sees a huge opportunity in defence R&D and manufacturing as the government has realised the public sector is stretched too thin to meet the needs of the country’s rapidly modernising and expanding armed forces.

The private sector’s entry in defence is also vital because India is spending billions of dollars importing all sorts of major weapons and losing out on the opportunity to boost the local economy with that money. Moreover, India cannot hope to sustain a major war with imported weapons, as foreign suppliers can cease supplies and spares at any time.