New Delhi: The Government of India has lifted the long-standing ban on several foreign defence companies, including Italy’s Leonardo, allowing them to participate in new defence projects. The move comes as part of a broader policy review aimed at enhancing transparency, expanding procurement options, and strengthening defence cooperation.
Background of the Ban
Leonardo had been barred from India since 2013–14 over alleged corruption in the VVIP helicopter deal. While the company faced accusations of bribery, India had cancelled all contracts with it at the time. The recent decision does not allow Leonardo to make any financial claims on past contracts; ongoing investigations will continue. The ban lift only enables participation in future defence projects.
New Committee for Policy Review
The Ministry of Defence has formed a committee led by DG (Acquisition) A. Anbarasu to review bans on all other foreign defence firms blacklisted following the 2009 Ordnance Factory Board bribery case. This is the first time the government is examining all companies collectively to develop a new policy framework.
Other Affected Companies
The review includes major firms such as Rheinmetall, ST Kinetics, Rolls-Royce, among others. Several companies, including Singapore-based ST Kinetics, had formally requested the removal of their bans. ST Kinetics’ 13-year-old restriction, imposed in 2012, had prevented participation in Indian defence tenders, joint ventures, and technology transfers, despite no formal charges being proven.
Implications for Indian Defence
The lifting of bans is expected to provide the Indian armed forces with greater procurement flexibility and reduce dependence on a single vendor for critical equipment and spare parts. Recent talks between India and Singapore on advanced artillery systems and unmanned ground vehicles underscore the need for renewed collaboration.
Defence experts see the move as a signal that India is willing to overcome past disputes to foster strategic partnerships while maintaining strict security and transparency standards. The policy review is also aligned with the “Atmanirbhar Bharat” initiative, enabling foreign companies to collaborate with Indian firms in defence production.
