Categories: Current Affairs

Yantra India Limited Miniratna Status 2026 – Boosts India Defence Production

Yantra India Limited granted Miniratna Category‑I status by Ministry of Defence in 2026. Key updates on financial autonomy, defence manufacturing, and Aatmanirbhar Bharat initiative.

Yantra India Limited Granted Miniratna Category‑I Status by Ministry of Defence

Introduction: Major Boost to Defence Production

The Government of India, through the Ministry of Defence, has granted Miniratna Category‑I status to Yantra India Limited (YIL), marking a significant milestone in the nation’s defence manufacturing sector. This recognition was approved by Defence Minister Rajnath Singh on February 2, 2026. The decision underlines YIL’s rapid transformation into a profit‑making defence Public Sector Undertaking (PSU) and aligns with the national vision of self‑reliance in defence production.

What Is Yantra India Limited?

Yantra India Limited (YIL) is a key defence PSU under the Department of Defence Production. It was formed as part of a major restructuring exercise when the Ordnance Factory Board (OFB) was corporatised on October 1, 2021 into seven Defence PSUs. YIL is now one of the Schedule ‘A’ companies entrusted with manufacturing essential defence equipment and technologies.

Significance of Miniratna Category‑I Status

Miniratna Category‑I status is an esteemed classification given to Central Public Sector Enterprises (CPSEs) that have demonstrated consistent profit, strong financial performance and operational excellence. This status empowers YIL’s Board with enhanced financial autonomy, allowing it to approve capital expenditure and investments up to ₹500 crore without the need for prior government approval. This expanded authority is expected to accelerate modernisation, production capacity expansion and improve decision‑making efficiency.

Financial Growth and Performance

Since its inception four years ago, YIL has delivered impressive growth:

  • Sales increased from around ₹956 crore in the latter half of FY 2021‑22 to over ₹3,108 crore in FY 2024‑25.
  • Exports, which were negligible at inception, grew to more than ₹321 crore in FY 2024‑25. This growth trajectory highlights its expanding footprint in both domestic and international defence markets.

Wide Product Portfolio

YIL’s diverse defence product base includes:

  • Carbon fibre and glass composites
  • Aluminium alloys
  • Assemblies for medium and large calibre ammunition
  • Components for armoured vehicles
  • Main battle tanks (MBTs)
  • Artillery gun parts
    These products are crucial for strengthening India’s defence capabilities and reducing dependence on foreign imports.

Contribution to Aatmanirbhar Bharat

Granting of the Miniratna Category‑I status is part of the government’s strategic push toward Aatmanirbhar Bharat, aimed at promoting indigenous defence manufacturing and reducing reliance on imports. This move is expected to amplify India’s global competitiveness in defence production while enhancing technological innovation and export potential.


Yantra India Limited Miniratna Status

Why This News Is Important

Enhancing Defence Sector Autonomy

The grant of Miniratna Category‑I status to Yantra India Limited represents a major step toward empowering defence PSUs with greater operational and financial autonomy. This autonomy enables quicker decisions on capital expenditure and project launches, which is vital for strengthening defence production infrastructure.

Boosting Self‑Reliance in Defence

The decision is pivotal for India’s Aatmanirbhar Bharat initiative, which focuses on self‑reliance through increased indigenous production of defence platforms and systems. By strengthening critical manufacturing capabilities, India can reduce its dependency on foreign defence imports — a core objective for practitioners preparing for exams involving national security and economic policies.

Strategic Economic Impact

With enhanced powers to invest in modernisation, YIL can bolster its productivity, expand manufacturing output, and play a crucial role in boosting defence exports. This contributes not only to national security but also to economic growth and international defence trade competitiveness — all important themes for UPSC, SSC, Banking & Railways exam aspirants.


Historical Context: Defence PSU Reforms

Restructuring of Defence Production

The Ordnance Factory Board (OFB), which functioned for decades as a central procurement and manufacturing body for defence, was reorganised on October 1, 2021, into seven independent Defence Public Sector Undertakings (DPSUs). This major reform aimed to encourage autonomy, increase operational efficiency, and promote innovation across defence manufacturing.

Miniratna Status in PSU Hierarchy

In the Indian public sector, PSUs are classified into Maharatna, Navratna, and Miniratna categories based on performance, profitability, and strategic importance. Miniratna Category‑I is a significant recognition that allows certain financial powers to PSUs with demonstrated financial stability. This step is crucial in deepening public sector contribution to India’s economic and defence priorities.

Progressive Recognition of Defence PSUs

Earlier in May 2025, three other newly formed DPSUs — Munitions India Limited, Armoured Vehicles Nigam Limited, and India Optel Limited — were also accorded Miniratna Category‑I status. YIL’s recent recognition reflects a broader trend of recognising efficient defence PSUs.


Key Takeaways from Yantra India Limited Gets Miniratna Category‑I Status

FAQs: Frequently Asked Questions about Yantra India Limited Miniratna Status

1. What is Yantra India Limited (YIL)?

Yantra India Limited is a defence Public Sector Undertaking (PSU) under the Ministry of Defence, formed after corporatisation of the Ordnance Factory Board (OFB) on October 1, 2021. It manufactures a range of defence equipment, including ammunition components, tank parts, and armoured vehicle components.

2. What does Miniratna Category‑I status mean?

Miniratna Category‑I is a PSU classification that allows companies with consistent profitability to have greater financial and operational autonomy. It enables the Board to approve capital expenditure and investments up to ₹500 crore without government approval.

3. Why is YIL getting Miniratna status significant for India?

This recognition boosts Aatmanirbhar Bharat in defence manufacturing, allowing YIL to expand production, modernize operations, and strengthen India’s strategic self-reliance in defence. It also improves the PSU’s export potential.

4. When was the Ordnance Factory Board corporatised into DPSUs?

The corporatisation happened on October 1, 2021, resulting in the creation of seven independent DPSUs, including Yantra India Limited, to improve efficiency, accountability, and innovation in defence production.

5. What are the key products manufactured by YIL?

YIL produces a diverse range of defence equipment:

  • Armoured vehicle components
  • Main Battle Tank (MBT) parts
  • Medium and large calibre ammunition assemblies
  • Carbon fibre and glass composites
  • Aluminium alloys and mechanical assemblies

6. How has YIL performed financially since inception?

YIL’s sales grew from ₹956 crore in FY 2021‑22 to ₹3,108 crore in FY 2024‑25, while exports increased from negligible to ₹321 crore in FY 2024‑25.

7. How does this news relate to government exams?

Questions on defence PSUs, Miniratna status, and Aatmanirbhar Bharat initiatives are often asked in UPSC, SSC, Banking, Railways, Defence, and State PSC exams. Understanding YIL’s recognition helps candidates answer such current affairs questions effectively.

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