Panel recommends vendor benchmarks and phased local content in defense reforms.
The Indian government is contemplating significant reforms to its defense acquisition procedures to enhance indigenous manufacturing and innovation. A high-level panel has proposed a phased increase in Indigenous Content (IC) requirements across various procurement categories and the introduction of single-vendor arrangements for low-cost, urgent needs under ₹100 crore to expedite crucial acquisitions. The aim is to foster domestic capabilities while aligning with Aatmanirbharta and Make in India initiatives. Additionally, a clear vendor qualification framework is suggested to streamline the procurement process and reduce procedural delays, alongside encouraging collaborations to boost technological advancements in defense. These reforms are expected to significantly strengthen the operational readiness of the armed forces while supporting the domestic defense industry.
