Raksha Mantri Approves Defence Procurement Manual 2025 to Streamline & Indigenise Acquisition
SDG 9: Industry, Innovation and Infrastructure | SDG 17: Partnerships for the Goals
Institution: Ministry of Defence
The Government of India, through Raksha Mantri Shri Rajnath Singh, has approved the Defence Procurement Manual (DPM) 2025, an updated framework designed to simplify, accelerate, and make more transparent revenue procurement under the Ministry of Defence. The revised manual specifically targets procurements under βOperations & Sustenanceβ and aims to better align with the pace of modern warfare requirements. Key changes include enabling greater participation of private companies, MSMEs, start-ups, and academia; reducing penalties during prototype development; ensuring more lenient norms for delivery delays (liquidity damages reduced); providing guaranteed orders up to five years (longer under special cases); devolving decision-making powers to lower formations and authorities; simplifying tendering for proprietary items; and removing certain restrictive vetting requirements for suppliers. The overall goal is to support self-reliance (Aatmanirbharta) in defence manufacturing and enhance innovation.
The DPM 2025 could have significant implications for Indiaβs defence industrial base, particularly in promoting indigenisation, enhancing the role of domestic private sector players, startups, and academia in defence R&D and production. By relaxing procedural bottlenecks, delegating decisions, and aligning with broader procurement norms (like those of the Finance Ministry), this manual has the potential to speed up acquisition cycles, reduce cost overruns, and improve operational readiness for the armed forces.
Relevant Question for Policy Stakeholders:
How will the Ministry of Defence ensure that the more relaxed procurement norms maintain accountability, quality, and safeguard national security, especially when involving private/non-traditional suppliers, and what institutional mechanisms will monitor delivery timelines, cost, and compliance?
Follow the full news here: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2166559