The Indian government is considering easing the nomination-based system for defense contracts to promote greater participation from private players, particularly MSMEs, through open tendering. This shift aims to enhance competition and innovation in the defense sector, currently dominated by public sector undertakings like HAL. The government is also reviewing its offset policy to ensure that large defense deals provide long-term benefits to the domestic industry, requiring foreign suppliers to reinvest in India. With a significant budget allocation for defense, these reforms reflect a commitment to modernizing and strengthening India’s defense capabilities while reducing import dependency.