India to open defense procurement for private players, MSMEs
India is looking to shake up how it buys defense equipment by moving from a nomination-based system (where contracts are handed straight to public sector companies) to open tendering.
The goal is to invite more private players—including MSMEs—so there's more competition and innovation.
Right now, most big contracts just go to government-run giants like Hindustan Aeronautics Ltd.
Rethinking defense offset policy
The government is also rethinking its defense offset policy, which since 2005 has required foreign suppliers on big deals (over ₹2,000 crore) to reinvest 30% of the contract value back into India—often through tech sharing or local sourcing.
These updates are all about making the sector more transparent, boosting innovation, and giving smaller Indian companies a real shot at shaping the country's defense future.