Focus on Defence Industry and Innovation Enablement
Formation of an Export Promotion Body, Implementation of Quality Assurance 4.0 and Industry 4.0 in Defence Public Sector Units (DPSUs) and Establishment of a National Integrated Test Laboratory for defence platforms are being advanced, the Defence Ministry said in an industry update on 1 Jan 2026 https://www.commerce.gov.in/.
These initiatives are under the Defence Production & Quality Enhancement, said the Ministry, also highlighting the Jointness & Future Preparedness for the defence industry https://www.bseindia.com/.
These include the establishment of Joint Operations Control Centre, promulgation of Vision 2047 for the Armed Forces, Creation of a Future Operations Analysis Group, Promotion of joint training programmes and Finalisation of the Integrated Capability Development Plan are under various stages of implementation.
On Defence Policy and International Engagement – it said, “Review and revision of Defence Acquisition Procedure 2020, Encouragement of Foreign Direct Investment in defence, Enhanced engagement with friendly countries, Defence Lines of Credit including Bharat Maitri Shakti, and Rationalisation of restricted distance norms near defence establishments are under progress https://www.nseindia.com/.”
Contracts amounting to Rs.1.82 lakh crore for the modernisation of the Armed Forces were signed in the Financial Year 2025-26 till the end of December 2025.
The Defence Acquisition Council approved capital acquisition proposals worth Rs.3.84+ lakh crore since January 2025 to enhance the country’s defence readiness, with focus on modernisation through indigenisation.
Further, the Ministry has achieved 80% (Approx. Rs.1.2 lakh crore) expenditure under Capital Acquisition Budget by the end of December 2025. The allocation under this is spent on modernisation of the Armed Forces. The overall capital expenditure of Ministry has also reached up to 76% which includes expenditure on Infrastructure, land, R&D etc in addition to capital acquisition https://fieo.org/.
The Ministry said the focus is also on Defence Industry and Innovation Enablement. To promote greater indigenisation in defence and secure supply chains, private sector participation has been increased.
This includes streamlining defence manufacturing licenses, mapping the competencies of MSMEs, and preparing Market Intelligence Reports to enhance demand-supply analysis in defence procurement http://midhani-india.in.
Additionally, testing and trial infrastructure lab facilities are being shared with the private sector. 25% of defence research grants are also being allocated to them along with academic institutions and MSMEs to encourage innovation & strengthen collaboration in the defence sector.
On Acquisition and Procurement Reforms, procurement processes have been streamlined to reduce timelines, including Simplification of the iDEX manual, Rationalisation of defence export permissions, Revamping of the Defence EXIM Portal, Simplification of Technology Transfer policy and Decentralisation through revised Delegation of Financial Powers and Procurement Manuals (Defence Procurement Manual 2025, implemented with effect from 1 Nov 2025). Fiiinews.com
