Bharat Forge Negotiates with European Giants to Relocate Defence Production Lines to India for Global Markets

In a significant development for India's defence manufacturing sector, Bharat Forge is currently in advanced negotiations with several leading European defence companies to shift a portion of their production capabilities to India.

Mr Baba Kalyani, the Chairman of Bharat Forge, revealed these details during an exclusive interview with CNBC-TV18. He stated that the company is engaged in active discussions with two to three major European entities.

The primary objective of these talks is to establish manufacturing lines in India that will cater specifically to the export market, rather than just domestic needs.

If successful, this move could mark a turning point in India's integration into the global defence supply chain.

European Industry Facing Capacity Constraints

According to Mr Kalyani, the motivation behind these potential partnerships lies in the severe constraints currently faced by the European defence industry.

Traditional manufacturers in Europe are struggling with a shortage of skilled manpower and limited production capacity. These challenges have become more acute due to a sharp rise in defence orders triggered by the ongoing security situation in Europe and escalating demand from international customers.

To address these bottlenecks, European firms are looking for alternative manufacturing bases that offer scalability, cost-efficiency, and a robust industrial workforce. India, with its growing engineering capabilities, has emerged as a prime candidate for this relocation.

Bharat Forge’s Growing Global Footprint

Bharat Forge has been steadily strengthening its position in the defence sector over the last decade. The company has already demonstrated its capability to manufacture complex systems, including artillery guns, armoured vehicle platforms, and critical components.

Notably, recent reports indicate that Bharat Forge has successfully executed export orders for artillery systems to European nations, further validating its manufacturing standards.

By hosting these relocated production lines, Bharat Forge intends to seamlessly integrate Indian manufacturing into the global value chain. Mr Kalyani emphasised that the proposed partnerships go beyond the traditional model of "licensed production for India."

Instead, the focus is on "export-oriented manufacturing," enabling European companies to service their global clients more efficiently from Indian soil.

A Boost for ‘Make in India’

This development aligns closely with the Indian government's "Atmanirbhar Bharat" (Self-Reliant India) initiative, which seeks to transform the country from a net importer of arms into a major global exporter.

For India, collaborating with established European players offers an opportunity to deepen its defence industrial base, generate high-value employment, and acquire advanced technological know-how.

For the European partners, it provides a strategic solution to overcome domestic limitations while remaining competitive in the global market.

If these discussions mature into formal agreements, they will signal a high degree of confidence in India's ability to deliver sophisticated defence equipment at scale, potentially accelerating the nation's rise as a reliable hub for global defence manufacturing.