# India Advances Defence Procurement Reforms

India's Defence Ministry has implemented significant reforms under the Defence Acquisition Procedure 2026 to enhance self-reliance in military procurement. The Defence Acquisition Council approved 55 capital acquisition proposals valued at approximately Rs 6.73 lakh crore for fiscal year 2025-26, emphasizing indigenous manufacturing and increased participation of MSMEs. Key procurements include indigenous systems such as QRSAM, drone detection systems, AEW&C Mk-1A, Tejas Mk-1A fighters, and Rafale Marine fighters. Concurrently, the Indian Army, Navy, and Air Force are restructuring and modernizing their forces based on recent operational lessons to improve combat effectiveness and indigenization.

- **Why this matters:** Procurement professionals should note the increased domestic procurement allocation raised to 75%, signaling strong preference for indigenous suppliers and MSMEs in defence contracts.
- The large-scale capital acquisitions present substantial opportunities for domestic defence manufacturers and suppliers aligned with the new procurement categories.
- Agencies and contractors should align proposals with the Defence Acquisition Procedure 2026 guidelines to meet evolving requirements and leverage the government's push for self-reliance.
- The modernization and restructuring efforts across the Indian armed forces indicate ongoing demand for advanced indigenous technologies and systems integration services.

**Jurisdictions:** international
**Industries:** Defense & Military
**Topics:** Contracting Vehicles
**Published:** September 21, 2026

### Government Entities
- Defence Ministry of India
- Defence Acquisition Council
- Indian Army
- Indian Navy
- Indian Air Force (IAF)

### Sources
- [Beyond 'Make in India': How India is trying to build a military it can truly call its own | - The Times of India](https://timesofindia.indiatimes.com/defence/news/beyond-make-in-india-how-india-is-trying-to-build-a-military-it-can-truly-call-its-own/articleshow/134389060.cms) - The Times of India