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Defence Ministry to Overhaul Procurement Policy by 2025
The Ministry of Defence (MoD) has announced plans to reform its procurement policy within the next six to twelve months, signaling a transformative shift in how defence equipment is acquired in India. The overhaul is aimed at addressing inefficiencies, improving transparency, and aligning with the government’s vision of ‘Atmanirbhar Bharat’ (self-reliant India) in defence manufacturing.
Accelerating Defence Modernization
Defence Secretary Giridhar Aramane outlined the ministry’s commitment to updating the current procurement framework to ensure faster decision-making and accountability. “The reform will focus on simplifying procedures, minimizing delays, and expediting acquisitions critical for the armed forces,” he emphasized.
The move comes amid increasing demands for a streamlined process to meet the operational needs of the Army, Navy, and Air Force, ensuring that India’s defence apparatus remains agile and prepared for modern challenges.
Key Areas of Reform
The revised policy will aim to strengthen the indigenous defence manufacturing ecosystem by prioritizing domestic suppliers over imports. The reform will also promote Make in India initiatives, encouraging private sector participation and fostering collaborations with international defence firms for technology transfers.
Another critical aspect of the overhaul is the simplification of offset obligations, which require foreign vendors to reinvest a percentage of their contract value into the Indian defence sector. By making these regulations more transparent and manageable, the government aims to attract significant foreign direct investment.
Additionally, the ministry plans to enhance coordination between stakeholders, including the armed forces, government agencies, and private players, to ensure seamless procurement aligned with strategic needs.
Industry Response
The proposed reforms have been widely welcomed by defence industry stakeholders, who see this as a step toward improving the ease of doing business in the sector. Experts believe the changes will boost domestic innovation, reduce reliance on imports, and position India as a global hub for defence manufacturing.
Focus on Self-Reliance
The policy changes come in the context of India’s push for self-reliance in defence production. Recent initiatives, such as the development of defence corridors and increased investment in indigenous projects, reflect the government’s commitment to bolstering the nation’s military-industrial base.
A Promising Future
With this reform, the MoD aims to create a more robust and efficient procurement system that aligns with global standards while meeting the unique requirements of India’s armed forces. By emphasizing transparency, indigenization, and operational readiness, the revamped policy is expected to drive the modernization of India’s defence capabilities.
As the reform unfolds, it is poised to redefine the defence procurement landscape, ensuring that India is equipped to address emerging security challenges while fostering sustainable growth in the sector.
