SOURCE: AFI
In the wake of Operation Sindoor, the Ministry of Defence (MoD) has initiated a sweeping overhaul of India’s defence procurement process to fast-track acquisitions, improve cash flow to private vendors, and ensure rapid induction of critical military capabilities. Meetings held between the MoD and the Ministry of Finance (MoF) have outlined a roadmap for compressed procurement timelines, digitisation of trials, and incentivisation of indigenous production.
At the heart of the reform is a bold proposal to replace lengthy field evaluation trials (FETs) — which often stretch for years — with simulation-based and digital validation methods. This transition is intended to circumvent procedural bottlenecks and enable faster technical assessments of new systems, particularly for anti-drone systems, smart ammunition, and interoperable platforms like armored vehicles compatible with loitering munitions and guided missiles.
In line with lessons learned from recent operations, the MoD has issued instructions to private vendors to scale up production of specific categories of ammunition and systems, especially:
- Anti-drone weaponry
- Smart precision-guided munitions
- Multi-role armored vehicles that can integrate with different weapons systems
The reform thrust includes a focus on interoperability across the Indian Army, Navy, and Air Force, allowing for shared platforms and reducing redundancy in procurement.
Officials confirmed that the government is targeting year-end 2025 as a critical deadline to fast-track procurement milestones. The emphasis is clearly on giving the private sector a larger role in production, supply chain integration, and innovation — areas that were historically dominated by state-run defence PSUs.
To this end, the Ministry of Finance is said to have assured full capital expenditure (capex) support, provided procedural reforms help improve absorptive capacity, which has been a longstanding issue in defence budgeting. This refers to the challenges both in spending budgeted funds effectively and in executing global orders amid ongoing geopolitical turbulence.
While the Union Budget 2025–26 may not reflect a dramatic increase in defence expenditure, MoF officials have clarified that emergency procurement powers remain in place. Under existing authorisations, the services can procure equipment worth up to ?40,000 crore under fast-track procedures.
This overhaul is being positioned by the MoD as a “radically new approach” to defence acquisitions, one that goes beyond paperwork and timelines to build a resilient, responsive, and self-reliant military-industrial ecosystem.
By reducing the time from file to field, promoting digitisation, and empowering private Indian defence manufacturers, the government is sending a clear signal: national security preparedness will not be hostage to bureaucratic delays.
NOTE: AFI is a proud outsourced content creator partner of IDRW.ORG. All content created by AFI is the sole property of AFI and is protected by copyright. AFI takes copyright infringement seriously and will pursue all legal options available to protect its content.