On May 25, 2026, private defence companies' shares, including those of Apollo Micro Systems, witnessed a significant rise following Defence Minister Rajnath Singh's announcement about increasing the private sector's involvement in defence manufacturing, as per The Moneycontrol news report.
Defence Minister Rajnath Singh indicated the government's intention to escalate the private sector's participation in defence manufacturing from the existing 25-30% to 50%.
Following the announcement, Apollo Micro Systems shares surged by 11%, leading the gains among private defence firms.
The Nifty India Defence index saw a 1.2% increase during the afternoon trade, showcasing a favourable market response.
Shares of other defence firms like Astra Microwave, Paras Defence, DCX Systems, and Data Patterns also witnessed respective gains of 5.3%, 5.36%, 4%, and 3.6%.
The recent push by the government reflects a growing shift towards harnessing private innovation in defence production.
This approach aims to transform the private sector into a pivotal element of defence manufacturing, moving beyond the traditional focus on public sector undertakings and ordnance factories.
Singh emphasised that private firms are evolving from supplying basic components to developing sophisticated weapon systems.
Singh outlined several government initiatives designed to boost private sector participation. These include policy reforms, FDI liberalisation, and the strategic partnership model.
Moreover, the government has curated a list of 5,000 items for indigenisation, mandating that armed forces procure these domestically. Young innovators in the sector are also being encouraged through targeted initiatives.
Read More: Defence Ministry to Issue 5th-Gen AMCA Manufacturing RFP by Month-End!
Singh inaugurated a new ammunition manufacturing unit in Shirdi, expected to employ 2,000 people and support MSMEs.
The factory spans 200 acres and is set to export defence equipment globally. The event also marked the unveiling of India's first 300 KM Universal Rocket Launching System 'Suryastra' and the foundation stone laying for its missile complex.
The stock market reacted positively to Defence Minister Rajnath Singh’s call for greater private sector involvement in defence manufacturing, with marked increases in shares of companies like Apollo Micro. This government push highlights the importance of private sector innovation in strengthening India's defence capabilities.
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Published on: May 25, 2026, 1:33 PM IST
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