CDS’s Anger at Defence Companies Should Be an Eye-Opener: AIDEF General Secretary C. Srikumar
Domestic defence industries must be honest about their indigenous capability instead of masking imported components as Indian-made products, quips the veteran trade union leader
OPINION PIECE
The sharp remarks made recently by Chief of Defence Staff (CDS) General Anil Chauhan against defence companies have triggered strong responses from multiple stakeholders. Calling out delayed deliveries and inflated claims of indigenisation, the CDS urged defence manufacturers to show “a little bit of patriotism” and refrain from leaving the Armed Forces “in the lurch.”
Reacting to the statement, C. Srikumar, General Secretary of the All India Defence Employees’ Federation (AIDEF), said the comments validate the concerns the federation has been raising for years.
“Defence reforms are not a one-way street” — C. Srikumar
Srikumar said that domestic defence industries must be honest about their indigenous capability instead of masking imported components as Indian-made products.
He reiterated that AIDEF has consistently warned the Government and Armed Forces about the pitfalls of prioritizing profit motives over national security:
“Defence industries in the government sector were never created for minting profits. Quality, precision, and timely delivery must come before profit because the nation’s security and the confidence of the Armed Forces should always remain the top priority.”
He added that constructive suggestions from AIDEF are often dismissed simply because they come from a trade union, despite being rooted in the realities of production floors and supply chains.
Corporatisation: “A failed misadventure,” reiterates AIDEF
Referring to a recent meeting with the Department of Defence Production, Srikumar said that AIDEF, along with IOFS Officers’ Association and others, unequivocally stated that the corporatisation of the Ordnance Factory Board (OFB) has not delivered on its promises.
“The corporatisation of the Ordnance Factories is a failed exercise. When the OFB functioned under the departmental structure, it achieved 95% indigenisation—something the Government and Armed Forces never acknowledged.”
He highlighted that despite corporatisation leading to profits on paper, critical issues such as fragmentation, weak R&D investment, and delayed deliveries continue to plague defence public sector undertakings (DPSUs).
Patriotism vs Profit: The Deepening Fault Line in India’s Defence Landscape
A Wake-Up Call from the CDS
General Chauhan’s candid criticism of companies inflating indigenous content and failing timely commitments marks a turning point. His message is clear: National security cannot be compromised by commercial considerations.
Defence Is a Mission, Not a Market
Historically, the OFB embodied a mission-first model—where preparedness and sovereignty were the priority, not profit margins. Corporatisation in 2021, while improving financial numbers, may have inadvertently shifted focus toward market-driven logic.
The Myth of Indigenisation
Industry claims of “70% indigenous content” have been repeatedly questioned. The CDS’s remarks confirm long-standing concerns that several products marketed as Indian actually rely heavily on imported components—a practice that poses serious national security risks.
The Tip of the Iceberg: Larger Systemic Issues
The recent procurement delays highlighted by the CDS are symptomatic of deeper structural problems:
- Profit chasing over mission alignment
- R&D underinvestment across new defence companies (NDCs)
- Fragmented supply chains after corporatisation
- Weak accountability mechanisms
- The failure of critical systems such as the “Sarang Gun” further raises questions about cost optimisation overtaking capability enhancement.
What India Must Do Now
✔ Reassert National Mission Alignment
Profitability must complement — not overshadow — defence preparedness.
✔ Stricter Transparency and Oversight
Independent audits and parliamentary reviews of delays and procurement failures.
✔ Strengthen Indigenous R&D
Beyond statements — evaluate actual R&D manpower, expenditure, and capability of each New Defence Company.
✔ Policy-Level Patriotism
Incentivise firms based on performance tied to national security outcomes, not financial metrics.
Conclusion: Defence Is Duty, Not Business
India’s defence manufacturing stands at a decisive crossroads. The CDS’s public censure serves as a stark reminder that defence production cannot run on market logic alone.
Views expressed here are those of C. Srikumar, General Secretary of All India Defence Employees Federation (AIDEF) and veteran Union Leader
