Govt plans to classify foreign firms' local arms as 'Indian' vendors.
The Indian government is considering a proposal that would recognize wholly owned local subsidiaries of foreign defense companies as “Indian vendors” in defense procurement, a move aimed at enhancing domestic manufacturing. This initiative, discussed by a special task force led by former cabinet secretary Rajiv Gauba, seeks to streamline procurement processes by transitioning from a nomination-based to an open tender system, thereby increasing private sector participation. Additionally, the task force recommends standardizing request for proposal formats and timelines and establishing a defense startup policy to foster indigenous innovation. This reform aligns with India’s strategic objective of bolstering its defense ecosystem, promoting competition, and simplifying operational procedures in anticipation of upcoming budgetary allocations.