New Delhi: India is set to achieve a record-breaking milestone in defence procurement this year, with the Ministry of Defence (MoD) aiming to sign contracts valued between ₹2-3 lakh crore. This marks a significant increase from the previous highest contract awards of ₹1 lakh crore in 2023-24.
The Defence Secretary informed the parliamentary standing committee on defence that the ministry has already surpassed last year’s figures and is on track to double or even triple the previous record. This ambitious plan was communicated to a parliamentary panel as part of the government’s broader initiative for modernisation, which has been designated as the ‘Year of Reforms’ in 2025.
The MoD aims to simplify its procurement process, addressing previous delays and inefficiencies that have hindered timely contract awards.
Defence Secretary Rajesh Kumar Singh highlighted that the highest number of contracts awarded in the past fiscal year reached ₹1 lakh crore, and this year, they anticipate doubling or even tripling that figure. The ministry is actively working to reduce procurement timelines by leveraging technology to streamline lengthy trial evaluations and expedite final contract negotiations.
The MoD’s response also addressed concerns regarding budget allocations, noting that while significant funds were allocated for capital expenditure, actual spending had lagged behind due to various factors, including the absorptive capacity of both domestic industries and international supply chains affected by geopolitical tensions. For instance, delays in the delivery of systems such as the S-400 from Russia were cited as contributing factors.
The MoD’s proactive measures and commitment to reform signal a robust approach towards enhancing India’s defence capabilities amidst evolving global challenges.
