Brief Context
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.
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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