India’s Ministry of Defence (MoD) has undertaken a crucial overhaul of the Defence Acquisition Procedure (DAP) 2020 to expedite defence procurement and address long-standing inefficiencies and delays.
To fast-forward these reforms, the MoD has constituted a high-level committee under the Additional Secretary and Director General (Acquisition). Tasked with reviewing and restructuring the procurement process, this committee is expected to complete its mandate within six months, aligning with the MoD’s decision to designate 2025 as the “Year of Reforms.”
Defence Secretary Rajesh Kumar Singh has indicated that the procedural streamlining within DAP 2020 could significantly shorten procurement timelines. Key changes are expected to be implemented by early June 2025. The reforms aim to reduce the extensive two-to-three-year timeframe required to formulate a Request for Proposal (RFP) and reduce prolonged field evaluation trials and cost negotiations.
Endemic Delays
Currently, India’s defence procurement cycle spans 5-7 years, with field-evaluation trials alone consuming up to three years. The existing multi-stage process, from the Acceptance of Necessity (AoN) to contract signing, involves several bureaucratic hurdles, including vendor selection, bid evaluation, and financial negotiations. These delays have led to critical capability gaps, particularly for the Indian Air Force (IAF), whose active squadron strength has dropped to 31—far below the sanctioned 42—due to ageing aircraft and delayed inductions.
Recognizing the pressing need for efficiency, the reform process will engage stakeholders across the defence ecosystem, including domestic private firms, global Original Equipment Manufacturers (OEMs), public-sector units, startups, and think tanks. By addressing industry concerns, the MoD aims to create a more responsive and transparent procurement framework that balances national security imperatives with the realities of the defence market, according to the sources in the MoD.
With a budgetary allocation of ₹6.81 trillion for FY 2025-26, the MoD has earmarked ₹1.8 trillion (26.43%) for capital outlay on defence services, of which ₹1.49 trillion is dedicated to capital acquisition. However, the capital outlay increases of just 4.65% over the previous budget indicates the need for optimal resource utilization through procurement reforms. Industry analysts argue that without a streamlined acquisition process, budgetary allocations alone will not suffice to modernize the armed forces effectively.
The defence acquisition landscape is set for a significant transformation, with procedural reforms expected to be finalized by September 2025. The MoD’s high-level committee will soon initiate discussions with key stakeholders to eliminate redundancies and accelerate procurement timelines. If successful, these reforms could reshape India’s defence procurement ecosystem, ensuring that the armed forces receive critical equipment on time while fostering a more competitive and efficient domestic defence industry.
As geopolitical tensions persist and technological advancements redefine modern warfare, India’s ability to procure and deploy cutting-edge military hardware swiftly will be crucial. The success of these reforms will not only determine the effectiveness of capital investments but also enhance India’s strategic readiness in an evolving global security landscape.
Team BharatShakti
