India’s KSSL and Belgium’s FN Herstal signed MoU . (03 September 2026 – New Delhi).
KSSL-FN Herstal MoU: Kalyani Strategic Systems Ltd (KSSL), a wholly owned subsidiary of Bharat Forge, and FN Herstal, a wholly owned subsidiary of FN Browning Group, have signed a memorandum of understanding to explore local manufacturing and industrial cooperation for defence equipment in India.
The agreement, signed on 3 September, could lead to the establishment of a dedicated production centre in India and potentially a strategic alliance or joint venture between the two companies. The proposed cooperation would cover small arms, integrated weapon systems and counter-unmanned aerial system (C-UAS) solutions.
The MoU does not itself establish a joint venture or confirm a production programme. Instead, the two companies will assess the feasibility of potential projects, primarily aimed at meeting requirements in the Indian market.
The proposed arrangement is part of a broader effort to increase domestic manufacturing in India’s defence sector under the government’s Make in India policy.
Production and technology cooperation
Under the agreement, KSSL and FN Herstal will examine the possibility of creating a dedicated production centre in India.
They will also evaluate a Strategic Alliance or Joint Venture covering a range of FN Herstal defence products. The scope includes small arms, integrated weapon systems and C-UAS equipment.
For India, the proposed arrangement could provide another route towards increasing domestic production of defence equipment. Local manufacturing can reduce dependence on imports and potentially improve access to spares, maintenance and supply chains.
However, the extent of technology transfer, the products that could eventually be manufactured and the structure of any future joint venture have not been specified in the announcement. Those issues would need to be worked out if the companies decide to proceed beyond the MoU.
The companies said the initiative is intended to build capability within India through local manufacturing, technology cooperation and increased domestic value creation.
For the armed forces, the stated objective is also linked to security of supply. Small arms and other weapon systems are used across a wide range of military operations, making availability and sustainment important considerations for defence procurement.
FN Herstal’s Arka Rifle.
What the companies bring
The proposed partnership combines KSSL’s Indian engineering and manufacturing capabilities with FN Herstal’s long-standing experience in small arms and weapon systems.
KSSL is part of the Kalyani Group and is owned by Bharat Forge. FN Herstal, meanwhile, operates under FN Browning Group and has a history extending more than a century in the development and production of small arms and related weapon systems.
The two companies are presenting the arrangement as a combination of industrial capacity and established defence product expertise.
Amit Kalyani, Vice Chairman and Joint Managing Director of Bharat Forge, said the partnership would seek to combine the two companies’ capabilities.
“Kalyani Strategic Systems (KSSL) is proud to partner with FN Herstal to bring world-class technology, products, and manufacturing expertise to India.”
Kalyani said the companies intended to use the partnership to develop products in India while also looking at international markets.
“By combining FN Herstal’s globally respected portfolio and decades of experience with KSSL’s engineering excellence and industrial scale, we are creating a strong platform to deliver advanced defence solutions from India – for India and global markets.”
He added that the partnership was intended to contribute to India’s defence modernisation and domestic manufacturing objectives.
“Together, we aim to support India’s defence modernisation through locally manufactured, globally leading products while strengthening indigenous capabilities and advancing the vision of Aatmanirbhar Bharat.”
FN Herstal’s India plans
For FN Herstal, the proposed cooperation represents a deeper industrial engagement with the Indian defence market rather than simply supplying equipment from overseas.
Julien Compere, Chief Executive Officer of FN Browning Group, said India was an important market and partner for the company.
“India is a strategic partner for FN Herstal, and we are proud to take this important step with Kalyani Strategic Systems.”
Compere said the companies wanted to combine their respective industrial and defence capabilities to develop longer-term capacity in India.
“This agreement reflects a shared ambition: to combine FN Herstal’s proven defence solutions, trusted by the world’s most demanding armed forces, with KSSL’s outstanding industrial capabilities to help build long-term sovereign capacity for the Indian Armed Forces.”
He also linked the proposed cooperation to India’s domestic manufacturing policy.
“Together, we are committed to supporting the objectives of Make in India through local manufacturing, technology cooperation and the development of advanced defence capabilities, creating lasting value for India, its armed forces and our two companies.”
Counter-drone capability adds another focus
One notable element of the proposed cooperation is C-UAS technology.
Counter-UAS systems are designed to detect, track and counter unmanned aircraft. Their importance has increased as drones have become more widely used for surveillance and military operations.
The inclusion of C-UAS systems alongside small arms and integrated weapon systems gives the proposed partnership a broader scope than conventional small-arms manufacturing.
At this stage, however, the companies have not announced specific systems that would be manufactured in India, production volumes or investment figures.
The immediate next step is therefore feasibility assessment. Under the MoU, KSSL and FN Herstal will jointly explore potential cooperation projects, with the primary objective of addressing requirements in the Indian market.
If the discussions lead to a production centre or joint venture, the arrangement could add another international-Indian partnership to India’s expanding defence manufacturing ecosystem. For now, the agreement establishes a framework for evaluating that possibility rather than a final commitment to production.
