Prime Minister Narendra Modi on Friday, June 5, 2026, visited the Larsen & Toubro (L&T) complex at Hazira, near Surat, Gujarat, where he witnessed a range of pioneering innovations across sectors, with particular focus on the conglomerate's contributions to India's defence manufacturing ambitions.

Sharing the visit on X, PM Modi wrote: 'This afternoon, went to the L&T complex at Hazira. Witnessed some of their pioneering innovations across different sectors. The role played by L&T in furthering self-reliance in the defence sector is commendable.'

Context

The Hazira industrial complex is one of L&T's most strategically significant facilities, housing heavy engineering units and dedicated defence manufacturing infrastructure. The complex produces a range of critical platforms including artillery systems, naval components, and aerospace structures. A prime ministerial visit to a private-sector defence facility of this scale is a notable signal of policy endorsement.

L&T has emerged as one of the few Indian private firms capable of manufacturing complex defence platforms — from K9 Vajra howitzers to submarine hull sections — placing it at the centre of India's push to reduce import dependence that historically exceeded 60 per cent of total defence procurement.

Policy Backdrop

The visit sits squarely within the government's decade-long effort to build a robust domestic defence industrial base. The Make in India initiative, launched in September 2014, explicitly included defence manufacturing as a priority vertical. Subsequent revisions to the Defence Procurement Procedure have consistently privileged the Buy (Indian-IDDM) category, opening space for private firms such as L&T.

Between 2020 and 2022, the government notified Positive Indigenisation Lists banning imports of 411 defence items, mandating domestic production. The FDI ceiling in defence was simultaneously raised to 74 per cent under the automatic route to attract private capital. These measures collectively form the scaffolding of the Atmanirbhar Bharat defence framework, which targets annual defence production of Rs 3 lakh crore by 2028-29.

Stakeholders and Impact

For L&T, a prime ministerial visit reinforces its position as the private sector's foremost defence partner, likely strengthening its case in ongoing and upcoming capital acquisition proposals. The broader private defence ecosystem — comprising tier-2 and tier-3 suppliers clustered around large integrators — also benefits from the visibility such visits generate for investor and policy attention.

The Indian Armed Forces stand to gain from accelerated indigenisation: domestic production reduces foreign-exchange outflows, shortens supply chains, and insulates procurement from geopolitical disruptions — a concern that has grown sharper amid shifting global alliances and export-control regimes.

What's Next

Attention now turns to the Defence Ministry's next Negative Importation List and the capital acquisition proposals expected in the 2026-27 Union Budget, both of which could include platforms manufactured at facilities like Hazira. Any new contracts or indigenisation milestones announced in the weeks following this visit will be closely watched as a measure of whether prime ministerial endorsement translates into accelerated procurement decisions.

With India's defence export target also set ambitiously, L&T's Hazira complex may increasingly serve not just domestic armed forces but also partner nations seeking Indian-made platforms — extending the strategic dividend of self-reliance well beyond the country's borders.