Government Plans Overhaul of Defence Ecosystem with Emphasis on Faster Procurement and Increased R&D Funding
In a significant move to enhance the efficiency and self-reliance of India’s defence sector, the Ministry of Defence has declared 2025 as the “Year of Transformation.” Key initiatives include streamlining procurement processes, reducing bureaucratic hurdles, and increasing funding for indigenous research and development (R&D).
Streamlining Procurement Processes
Defence Secretary Rajesh Kumar Singh emphasized the need to expedite procurement timelines and eliminate outdated procedures that hinder timely acquisitions. The upcoming Defence Acquisition Procedures (DAP) are expected to be more concise and straightforward, replacing the 2020 version to facilitate quicker decision-making and implementation.
Enhancing Indigenous R&D
The government plans to allocate more resources towards indigenous R&D, aiming to develop critical technologies domestically. This initiative seeks to reduce dependence on foreign equipment and promote self-sufficiency in areas such as jet engines and advanced radar systems.
Facilitating Defence Exports
Efforts are underway to simplify the export process for Indian defence companies, enabling them to compete more effectively in the global market. By easing regulations and providing support, the government aims to boost defence exports and strengthen India’s position as a defence manufacturing hub.
Collaborations with Foreign OEMs
The Ministry of Defence is exploring partnerships with foreign Original Equipment Manufacturers (OEMs) for joint development and production of critical technologies. Such collaborations are expected to facilitate technology transfer, enhance domestic capabilities, and promote the establishment of specialized test facilities with focused funding.
Addressing Resource Utilization
Despite allocating 1.9% of GDP to defence, challenges remain in fully utilizing these resources due to limited domestic absorptive capacity. The proposed reforms aim to address these challenges by creating a more pragmatic and efficient defence ecosystem capable of effectively deploying available resources.
These comprehensive reforms reflect the government’s commitment to overhauling the defence ecosystem, fostering innovation, and achieving greater self-reliance in defence capabilities.
