The Indian government is considering easing defense tender norms to boost private sector involvement and competition in procurement, moving towards greater use of open tendering even as very few large projects remain nomination-based, where contracts are directly awarded to public sector undertakings like Hindustan Aeronautics Ltd and Mazagaon Dock Shipbuilders, as reported on August 18, 2025. This reform aims to draw in more private players, including micro, small, and medium enterprises (MSMEs), fostering innovation and indigenization in the defense industry. Concurrently, the offset policy, which requires foreign suppliers to reinvest 30 percent of contract values exceeding Rs 2,000 crore in India through local sourcing, manufacturing, or technology transfers, is under review to become more flexible and industry-friendly, aligning with the Defence Acquisition Procedure 2020 updates. These initiatives are part of broader efforts declared in January 2025, designating the year as the “Year of Reforms” by the Ministry of Defence to enhance efficiency, transparency, and self-reliance, with domestic defense production reaching Rs 74,739 crore in FY24, of which the private sector contributed Rs 16,411 crore or 22 percent. The moves support India’s defense modernization, reducing import dependency, and strengthening the domestic industrial base via corridors in Uttar Pradesh and Tamil Nadu, while promoting exports that grew 31-fold over the last decade.