India Plans Major Defence Procurement Overhaul
India is preparing a major overhaul of defence procurement and research, with the government targeting faster acquisitions, deeper private-sector participation and structural reforms within the Defence Research and Development Organisation.
Defence Procurement Reforms Move to Highest Levels
Defence Secretary Rajesh Kumar Singh said several major acquisition programmes, including the Multi-Role Fighter Aircraft project and jet-engine-related deals, are being processed at the highest levels.
He said the government wants to accelerate procurement but stressed that statutory procedures cannot be bypassed, as doing so could undermine the integrity of the acquisition process.
Some major procurement proposals could translate into signed contracts within the current calendar year.
DRDO to Focus More on Core Research
The government also plans to reshape DRDO into a primarily research-and-development-focused organisation rather than allowing it to function extensively as a systems integrator or manufacturer.
Conventional missile technologies are expected to be transferred progressively to private industry for production, while DRDO laboratories may also be rationalised and consolidated.
Reducing administrative work for scientists, improving recruitment and strengthening accountability for project delays are also part of the reform agenda.
$20–25 Billion Annual Opportunity for Industry
The Defence Secretary said India could see an annual defence outlay of about $20–25 billion over the next decade, with 75% of capital procurement reserved for domestic industry.
Private companies currently contribute roughly 24% of defence production, but the government wants that share to move towards 50%.
The reforms also aim to expand private participation in munitions, fighter aircraft and emerging technologies such as drones, while making fast-track procurement more common.
The broader objective is to build a stronger sovereign defence industrial base linking the armed forces, DRDO, public-sector companies, private industry, MSMEs and academia.
