Released by India’s Defence Minister, the new DPM 2025 is an update to the previous such manual promulgated in 2009.

What is Defence Procurement Manual?

• About: It establishes rules for acquiring goods and services needed for daily operations, maintenance, and readiness of all Defence Services and Ministry of Defence establishments.
  • It is distinct from the Defence Acquisition Procedure (DAP), which deals with capital procurements.
• Key Highlights of DPM 2025 
  • Achieving self-reliance by promoting defence indigenisation and fostering jointness of the Armed Forces under Revenue Head (Operations & Sustenance Segment).
  • Streamlining and simplifying the revenue procurement process valuing around Rs 1 lakh crore for the current Financial Year.

Challenges in Defence Indigenisation

• Technological: Reliance on technology transfers and licensed production arrangements due to inadequate domestic R&D, skilled workforce, etc.
• Industry: Low private sector participation. E.g. Hindustan Aeronautics Limited’s (HAL) monopoly.
• Supply Chain Vulnerabilities: Reliance on imported components, subsystems and critical technologies, export controls restrictions, etc. E.g. delay in delivery of jet engines by the US.
• High Cost: Indigenisation and import substitution increase procurement costs for end-users in short-term.