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Industry Updates:

1. GST Council axes defence taxes, slashes drone GST to 5%, fuels Atmanirbhar Push Under the GST 2.0 rate rationalizations, with the shift in tax rates of various Defence Platforms, Systems, Components & Support Equipment, a few from 18% to NIL while the others from 12% to 5%. We believe the Defence sector would benefit with the boost in procurement in the medium-longer term while the working capital requirement burden of Defence PSUs and private companies.(Read More)

2. Drones Get GST Relief: Commercial UAV To Attract 5% Tax; Defence Exempted The GST Council has approved the simplification of the tax structure and slashed the taxes on commercial drones to 5%. In addition, the government had also exempted military drones, flight motion simulators, high-performance batteries and communication devices. (Read More)

3. Defence Min unveils 15-year roadmap: Nuclear-powered warships, hypersonic missiles, more on the horizon India's defence ministry has outlined ambitious acquisition plans worth billions, focusing on advanced technologies. These plans include nuclear propulsion for naval ships, stealth UCAVs, hypersonic missiles, and laser-based weapons. The roadmap emphasizes AI, spacebased warfare capabilities, unmanned systems, and direct energy weapons, aiming to modernize the armed forces over the next 15 years. (Read More)

4. German submarine co eyes India as tech partner ThyssenKrupp Marine Systems anticipates a submarine "super cycle" with demand exceeding capacity, positioning India as a key manufacturing partner. Their partnership with Indian companies for the P 75I project will establish an ecosystem to serve the global market. With an order book exceeding 18 billion euros, TKMS aims to diversify its supply chain, leveraging India's competencies. (Read More)

5. India should not rely on foreign supplies for its defence sector, says Rajnath Singh Defence Minister Rajnath Singh emphasized India's need for self-reliance in defence. He announced the Sudarshan Chakra air defence system. This system aims to provide aerial security to vital installations. The project will be completed within ten years. Prime Minister Narendra Modi announced this ambitious project. The minister highlighted that self-reliance is crucial for national security and economic strength. (Read More)

6. Choppy ride for India’s submarine ambition: Project P-75I chugs forward, Scorpenes a stinging tale The Indian Navy’s long-delayed submarine modernisation plan is once again caught between ambition and uncertainty. Even as German shipbuilder Thyssenkrupp Marine Systems (TKMS) has begun firming up Indian tie-ups after winning the bid for six next-generation submarines under Project 75 India (P75I), an equally critical proposal for three additional Scorpene remains stalled. (Read More)

7. Corporatised ordnance factories post record Rs35bn export orders in 2024-25 The corporatisation of the Ordnance Factory Board (OFB) into seven Defence Public Sector Undertakings (DPSUs) has delivered strong results, with record export orders worth nearly Rs.3,500 crore secured in 2024-25, according to senior Defence Ministry officials. Exports have also grown sharply, rising from just Rs.81 crore in 2019-20 to Rs.3,500 crore in 2024-25, reflecting India’s push for self-reliance in defence production. MIL has emerged as the best performer among the new companies, added sources in the MoD. (Read More)

Company Updates:

1. HAL To Deliver TEJAS MK-1A In Sept 2025 Without Undertaking Weapons Trials Hindustan Aeronautics Limited (HAL) is preparing to hand over the first two TEJAS MK-1A fighter aircraft to the Indian Air Force (IAF) next month, but the milestone remains contingent on the successful completion of crucial weapon integration trials scheduled for later this month. The tests will cover Astra beyond-visual-range missiles, advanced short-range air-to-air missiles, and precisionguided munitions such as laser-guided bombs, integrated with the aircraft’s new Israeli Elta ELM-2052 active electronically scanned array (AESA) radar and upgraded fire-control systems.(Read More)

2. GRSE signs pact with Merlinhawk to develop composite doors, hatches for Navy warships GRSE, Wednesday (September 3), signed a Teaming Agreement with M/s Merlinhawk Aerospace Pvt Ltd for the design, development, and manufacture of composite doors and hatches for the warships. This agreement is aimed towards establishing a collaborative framework that aligns with the Navy’s modernisation initiatives.(Read More)

3. Mazagon Dock Shipbuilders Looks At Sealing Rs 1trn Mega Submarine Deals After Long Wait India is likely to seal two mega submarine deals worth over Rs1trnby the middle of next year to crank up its undersea warfare capabilities against the backdrop of China's increasing naval prowess, authoritative sources said. (Read More)

4. BEML bags Rs800mn supply order from Indian Railways BEML said it has received an order valuing more than Rs800mn from the from Indian Railways for supply of Utility Track Vehicles. BEML is a leading multi-technology 'Schedule A' company under the Ministry of Defence. It operates in three verticals viz. defence & aerospace, mining & construction and rail & metro. As of 30 June 2025, the Government of India held a 53.86% stake in BEML. (Read More)

5. Bharat Electronics secures new orders worth Rs6.4bn Bharat Electronics (BEL) has announced that it has secured additional orders worth Rs 644 crore since its last disclosure on 30th July 2025. In a regulatory filing, BEL stated that the major orders received include a data centre, ship fire control system, tank navigation system, communication equipment, seekers, jammers, simulators, electronic voting machines, upgrades, spares, services etc. (Read More)

6. Apollo Micro Systems Secures Dual DRDO Projects In Rs250mn Bid Win According to the agreement, Apollo has been designated as the production agency for the Multi-Influence Ground Mine (MIGM) – Vighana under DRDO’s Development cum Production Partner (DcPP) framework. This marks a new addition to its domestic defence manufacturing contracts. In addition, Apollo Micro Systems has entered into a Transfer of Technology (ToT) agreement with DRDO. This transferred technology relates to an omni-directional multi-EFP (Explosively Formed Penetrator) warhead, which is a component of the NASM-SR (Naval Anti-Ship Missile – Short Range) platform.(Read More)

7. Axiscades Secures Pilot Orders in Electronics, Semiconductor and AI Division Axiscades Technologies Ltd. on Thursday announced that its subsidiary Mistral Solutions has bagged fresh pilot contracts in the electronics, semiconductor and artificial intelligence (ESAI) division. The company said the new orders, though modest in value, are strategically important as they involve two of the world’s largest hyperscalers. Together, the pilot contracts are estimated at around $1 million.(Read More)

8. Explosion at Solar Industries plant leaves one dead, eight injured The explosion at the Nagpur facility of Solar Industries killed one person and injured 8. The blast occurred shortly after midnight during the crystallization of an energetic material. Safety systems were activated but the shock caused casualties nearby. (Read More)

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