Record Defence Contracts To Be Signed This Year: Mod To Parliamentary Panel
India’s Ministry of defence (MoD) plans to sign contracts of ₹2-3 lakh crore this year, setting a new high in defence procurement. This is a huge increase from the previous biggest contract award of ₹1 lakh crore in 2023-24.
The Defence Secretary told the parliamentary standing committee on defence that the ministry has already surpassed last year’s data and is on course to double or perhaps quadruple the previous record.
This ambitious proposal was presented to a legislative commission as part of the government’s larger reform push, dubbed the ‘Year of Reforms’ in 2025.
The MoD intends to streamline its procurement process by removing prior delays and inefficiencies that have hampered timely contract awarding.
Defence Secretary Rajesh Kumar Singh stated that the previous fiscal year saw the greatest number of contracts granted at ₹1 lakh crore. This year, the amount is expected to double or perhaps triple.
The government is aggressively seeking to minimise procurement times by using technology to streamline long trial reviews and speed up final contract discussions.
The MoD’s response also addressed budget allocation concerns, stating that while significant funds were allocated for capital expenditure, actual spending had lagged behind due to a variety of factors, including the absorptive capacity of both domestic industries and international supply chains impacted by geopolitical tensions.
Delays in the supply of systems from Russia, such as the S-400, were mentioned as contributory reasons.
The Ministry of military’s proactive initiatives and commitment to change indicate a strong attitude to improving India’s military capabilities in the face of developing global threats.
