Defence Procurement Manual 2025

Syllabus :GS3/Defence

In News

• The Defence Minister has approved the Defence Procurement Manual (DPM) 2025.

Defence Procurement Manual 2025

• It is  a revised document aimed at expediting revenue procurements for the armed forces, simplifying processes for domestic industry and supporting innovation in defence manufacturing.
• It was last updated in 2009 and lays down principles and provisions for all revenue procurements in the Defence Ministry.
• The revised manual aligns with Finance Ministry guidelines and modern warfare needs, covering procurements worth nearly ₹1 lakh crore this year. 
• It introduces a new chapter on indigenisation and innovation, encouraging collaboration among private firms, DPSUs, and institutions like IITs and IISc. 
• It also assures order guarantees of up to five years, promotes field-level decision-making, and ensures faster supplier payments. 

Status of Defence Indiginisation in India

• India recorded its highest-ever indigenous defence production in FY 2023-24, reaching ₹1,27,434 crore—a 174% increase from ₹46,429 crore in 2014-15.
  • This growth, driven by government policies under Prime Minister Modi and the Make in India initiative, reflects the push for Atmanirbharta (self-reliance).
• India is now building a robust, self-reliant defence industry, contributing to both national security and economic growth.

Growth in Defence Exports

• India’s expanding global footprint in defence manufacturing is a direct result of its commitment to self-reliance and strategic policy interventions.
  • Defence exports have surged from ₹686 crore in FY 2013-14 to an all-time high of ₹21,083 crore in FY 2023-24, marking a 30-fold increase over the past decade.

Importance  

• Strategic Autonomy: It Reduces dependence on foreign suppliers, enhancing national security.
• Economic Growth: Boosts domestic manufacturing, job creation, and global trade.
• Geopolitical Leverage: Strengthens India’s position as a reliable defence partner.

Steps Taken

• Liberalized FDI Policy: Foreign Direct Investment (FDI) in the defence sector was liberalised in September 2020 to attract foreign investment, allowing up to 74% FDI through the automatic route and above 74% through the government route.
• The defence budget has risen significantly—from ₹2.53 lakh crore in 2013-14 to ₹6.81 lakh crore in 2025-26—highlighting India’s focus on military modernisation. 
• Launched in April 2018, Innovations for Defence Excellence (iDEX) has created a thriving ecosystem for innovation and technology development in defence and aerospace.
• The ‘SAMARTHYA’ event at Aero India 2025 showcased India’s achievements in defence indigenisation and innovation.
• Self-Reliant Initiatives through Joint Action (SRIJAN): Launched by the Department of Defence Production (DDP) in August 2020 to promote indigenisation under Atmanirbhar Bharat

Latest Milestone 

• Operation Sindoor marked a historic milestone for India’s defence industry, showcasing for the first time how made-in-India weapons like Brahmos missiles and indigenous defense systems played crucial roles in offensive and defensive operations against Pakistan-sponsored terrorism. 

Challenges

• Technological Gaps: Limited capabilities in materials, engine, and chip technologies.
• Import Dependence: Many platforms still rely on foreign components despite local assembly.
• Other challenges remain, particularly underfunded R&D and the need for stronger political commitment.

Conclusion

• India’s remarkable strides in defence production and exports underscore its transformation into a self-reliant and globally competitive military manufacturing hub. 
• Operation Sindoor’s success has proven India’s defence industry’s capabilities, providing a foundation to further strengthen indigenous defence manufacturing.
• To maintain momentum, India can increase its defence budget and foster innovation by involving private firms and startups. 

Source :TH