NEW DELHI — The defence secretary said on Sunday that a sweeping overhaul of the country’s arms‑procurement system and a restructuring of the Defence Research and Development Organisation (DRDO) are being processed at the highest levels of government. The reforms are intended to cut approval times, increase transparency and create a $25 bn domestic defence industry, officials told reporters.
Accelerating procurement
The ministry outlined a set of measures designed to streamline the existing procurement framework, which has been criticised for lengthy delays and cost overruns. Under the new plan, the Defence Acquisition Council will be empowered to approve projects up to ₹5 billion without full‑cabinet clearance, and a single‑window clearance cell will be established to coordinate inter‑departmental approvals. The secretary said the changes are expected to reduce the average procurement cycle from 36 months to under 18 months.
DRDO reforms
In parallel, the DRDO will undergo organisational restructuring aimed at improving project management and commercialisation of indigenous technologies. The ministry will create a dedicated “Technology Transfer Office” to liaise with private firms and accelerate the transition of research prototypes into production. A performance‑linked incentive scheme for senior scientists was also announced, with bonuses tied to milestones such as successful field trials and export contracts.
Industry opportunity
Officials projected that the reforms could unlock a $25 bn (approximately ₹2.4 trillion at the current exchange rate of ₹96 per dollar) market for Indian defence manufacturers over the next five years. The ministry plans to reserve a minimum of 30 % of all new contracts for Indian firms that meet quality and cost benchmarks, and to set up a “Strategic Suppliers Programme” that will certify companies capable of delivering critical components such as avionics, missile guidance systems and naval combat systems.
Policy context
The announcement follows a series of high‑profile procurement delays, including the postponed acquisition of fighter jets and naval vessels that have drawn criticism from opposition parties and industry bodies. The defence secretary noted that the reforms are aligned with the government’s “Make in India” agenda and the National Security Strategy, which calls for self‑reliance in strategic sectors.
Stakeholder reactions
Industry associations welcomed the move, saying the clear‑cut timelines and guaranteed domestic share would encourage investment. The Confederation of Indian Industry (CII) said the reforms could attract foreign direct investment in joint‑venture projects, while the Federation of Indian Chambers of Commerce & Industry (FICCI) urged the ministry to fast‑track the establishment of the single‑window cell.
Opposition leaders, however, cautioned that the success of the reforms will depend on rigorous implementation and oversight. A senior member of the opposition party questioned whether the new incentive scheme for DRDO scientists could lead to conflicts of interest, and called for an independent audit of the restructuring process.
Implementation timeline
The defence ministry said the first set of reforms will be tabled before the Cabinet Committee on Security within the next two weeks. The single‑window clearance cell is slated to become operational by the end of the calendar year, and the DRDO’s Technology Transfer Office will be inaugurated in the first quarter of 2027.
International dimension
Analysts noted that a stronger domestic defence base could reduce India’s reliance on foreign suppliers and improve its bargaining position in multilateral defence deals. The reforms are also expected to align India’s procurement standards with those of major partners such as the United States, France and Israel, facilitating joint development projects.
