India Unveils DPM 2025: Streamlined Defence Procurement and Faster Decision Making

On September 14, 2025, India’s Defence Ministry unveiled the Defence Procurement Manual (DPM) 2025, a comprehensive framework to simplify, streamline, and rationalise revenue procurement for the armed forces. 

With revenue procurement valued at around ₹1 lakh crore for the current fiscal, the new manual aims to ensure that required resources are available on time and at the right cost.

Key Objectives of DPM 2025

• Fostering Jointness: The framework encourages coordination among the three Services, facilitating quicker and more efficient decision-making.
• Operational Readiness: It focuses on maintaining high levels of military preparedness by expediting procurement processes.
• Self-Reliance (Aatmanirbhar Bharat): The DPM emphasises indigenisation, innovation, and collaboration with public/private industries and academia to promote domestic defence manufacturing.

Major Changes in the Manual

1. Ease of Doing Business: The manual simplifies procurement rules and relaxes provisions to encourage new entrants in defence manufacturing.
2. Development Contracts:
3. No Liquidity Damages (LD) during the development phase.
4. Minimum LD of 0.1% post-prototype development, with maximum LD reduced to 5%, and 10% only for excessive delays.
5. Assured orders in terms of quantity to incentivize suppliers who make timely deliveries.
6. Empowered Decision-Making: Competent financial authorities at field and lower formations can approve procurement, reducing file movement and speeding up payments.
7. Technology Integration: The manual aligns with modern public procurement practices and leverages technology to ensure transparency, accountability, and fairness.

Supporting Innovation and Indigenisation

A new chapter in the DPM 2025 focuses on encouraging in house design, development, and production of defence items and spares. This initiative aims to reduce dependence on imports, promote domestic expertise, and create opportunities for startups, academia, and private industry to contribute to India’s defence sector.

Read More: Defence Sector Q1 FY26 Results Snapshot: Mazagon Dock, BEL, Paras Defence and More.

Conclusion

The revised manual not only streamlines processes but also ensures timely delivery of critical resources to the armed forces. By balancing speed, accountability, and support for domestic suppliers, the DPM 2025 is expected to accelerate India’s journey towards self-reliance in defence.

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