India Signs ₹17 Crore Deal with Sanctioned Lokesh Machines for 7.62 mm MMG Mod Kits

In a significant step toward indigenization of defense production, the Indian Army has inked a ₹17 crore contract with Hyderabad-based Lokesh Machines Ltd for the procurement of 7.62mm medium machine gun (MMG) modular kits. What makes this move especially notable is that the firm is currently under U.S. sanctions for alleged links with the Russian defense industry.

The agreement aims to upgrade the Army’s existing inventory of 7.62mm MMGs, making them more modular and adaptable for operational requirements. This procurement is in line with India's Make in India and Atmanirbhar Bharat (self-reliant India) initiatives, which emphasize strengthening indigenous defense capabilities.

Despite facing U.S. trade restrictions under the CAATSA (Countering America's Adversaries Through Sanctions Act) list, Lokesh Machines has continued to gain support from Indian defense forces. The company, previously known for its contributions to precision engineering and defense hardware, was also the manufacturer of components for the ASMI submachine gun, India’s first indigenously designed 9mm SMG developed by the Indian Army's Army Design Bureau and DRDO.

The deal underscores the Indian Army's strategic intent to prioritize domestic manufacturing partners, even in the face of international scrutiny. It also highlights a growing confidence in Indian private-sector defense firms to deliver critical components for military modernization.

This order for MMG modular kits will not only help enhance the lethality, flexibility, and maintainability of existing machine guns but also reduce dependency on imports, which have traditionally been a source of delays and rising costs.

The move comes at a time when India is trying to balance strategic partnerships with both the United States and Russia while expanding its own defense manufacturing ecosystem. The Army’s decision to support Lokesh Machines sends a strong message about its commitment to fostering self-reliance, regardless of external pressure.

With this deal, Lokesh Machines is poised to play a larger role in India’s evolving defense industrial base, despite geopolitical headwinds.