Stories
India Doubles Defence Orders, Eyes Faster Procurement & Private Sector Boost
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Moneycontrol•24-09-2026, 17:53
India Doubles Defence Orders, Eyes Faster Procurement & Private Sector Boost
- •India's defence procurement has surged, with orders doubling to approximately Rs 2 lakh crore in the last two years, aiming to shorten acquisition cycles and expand domestic manufacturing.
- •The Ministry of Defence seeks faster procurement mechanisms for rapidly evolving technologies like drones, targeting contract signings within 6-8 months and deliveries within two years.
- •Defence Secretary Rajesh Kumar Singh emphasized the need for a broader industrial base for missile production, moving beyond a small group of suppliers to scale up manufacturing during conflicts.
- •The government is providing manufacturers greater visibility on future orders in the single-buyer defence market and promoting private sector participation in conventional missile technologies.
- •While expanding domestic manufacturing, India acknowledges the need for international partners in complex areas like jet engines, aiming to reduce critical vulnerabilities and create mutual dependence rather than complete isolation.
Key Questions Answered
India has sharply accelerated its defence procurement over the past two years, placing orders worth about Rs 2 lakh crore compared to an earlier trend rate of Rs 50,000 to Rs 80,000 crore.
The Ministry of Defence aims for a faster procurement cycle where contracts for technologies like drones are signed within six to eight months and deliveries are completed within two years.
To avoid relying on a single industry partner and to enable rapid scaling during conflicts, conventional missile technologies are being opened up to broader private-sector participation.
