India Announces $25 Billion Defence Procurement Overhaul to Boost Domestic Industry

India announces a comprehensive defence procurement reform plan under the 2026 Defence Reforms initiative, aimed at simplifying acquisition processes, cutting lead times, and increasing transparency across all service branches.

Defence Secretary Rajesh Kumar Singh said the overhaul will create a $25 billion market opportunity for domestic manufacturers, targeting land, air and naval platforms, and encourage greater private sector participation in future projects.

DRDO will undergo structural changes to align research output with the new procurement framework, focusing on faster technology transfer, joint development projects, and reducing development cycles to meet global standards.

Indian defence industry expects accelerated growth as the reforms open pathways for indigenous production, reduce reliance on imports, boost export potential, and will be monitored by the Ministry of Defence for compliance with new guidelines in the coming years.