Traditionally renowned for its forging skills, Bharat Forge made a daring entry into the defense industry in 2012 when it displayed its first domestic artillery gun at a defense show in Delhi.
“A lot of army guys walked by, some laughed at it,” recalled firm chairman Baba Kalyani, describing the military establishment’s contemptuous reaction. However, none of the guys paused to even look at what the hell it was.
It was for the straightforward reason that they didn’t think Bharat Forge, an Indian company, could produce firearms. Everyone had faith in imports. This mistrust stemmed from the widely held notion that only international vendors could provide high-quality defense hardware, and Indian private sector involvement in this area was essentially unheard of.
Both Baba Kalyani’s professional realization that artillery guns are essentially products of forging and metallurgy, which are Bharat Forge’s core strengths, and his personal fascination with artillery—shaped by his military school background and connections with senior armed forces personnel—were the driving forces behind his decision to diversify into defense following the 2008 financial crisis.
In spite of this, the Indian defense industry was a monopoly of the public sector at the time. Private companies were prohibited from entering the defense production sector, which was solely the responsibility of public sector projects and ordnance factories.
During this time, Kalyani’s attempts to reach out to the political community were received with silence. The lack of a significant response from meetings with Defence Minister AK Antony and then Prime Minister Manmohan Singh demonstrated the defense industry’s lethargy and resistance to private sector innovation.
India continued to import the same equipment for decades despite the company’s attempts to indigenize defense manufacture, including a plan from the 1970s.
Bharat Forge continued in spite of these obstacles. Although Kalyani emphasized that their firearms could be manufactured at half the price of imports, the problem was not with pricing but rather with attitudes and regulations. The landscape began to shift dramatically after Narendra Modi became Prime Minister in 2014.
An important turning point was the introduction of the “Make in India” campaign, which promoted private sector involvement and created a legislative climate more supportive of domestic production. Bharat Forge contributed to policy texts and took part in important defense conclaves that helped create the foundation for this change.
Under Defence Minister Manohar Parrikar, who led changes like the Defence Procurement Procedure (DPP) 2016 and recognised the challenges of indigenising defence manufacture, the genuine breakthrough occurred. These modifications expedited the procurement process, gave preference to equipment designed and built in India, and made it easier for the private sector and MSME participation.
Through financing incentives and expedited approvals for industry-led projects, the DPP 2016 and its modifications formalized support for domestic manufacturing and innovation.
In his reflection on the wider ramifications of these reforms, Kalyani pointed out that China and South Korea had surpassed India in defense manufacture because of the country’s prior emphasis on the public sector and stringent restrictions, which had hampered innovation. The private sector, which includes Bharat Forge, is now a major player in India’s defense ecosystem, helping to significantly reduce reliance on imports and boost domestic output.
The transformational effect of governmental reforms and the tenacity of Indian business are demonstrated by Bharat Forge’s journey from being derided in 2012 to being a major force in India’s defence manufacturing resurgence. The company’s story demonstrates how tenacity, innovative leadership, and regulatory change can overcome long-standing skepticism and promote national self-reliance in vital industries.
