Defence Secretary Rajesh Kumar Singh outlined a broad strategy to accelerate defence procurement, reform DRDO and strengthen India's sovereign defence industrial base, while positioning domestic manufacturing as both a strategic and economic priority.

Speaking at the SIDM Annual Conference in New Delhi, he said major acquisitions, including the Multi-Role Fighter Aircraft (MRFA) project and jet-engine co-production arrangements, are undergoing evaluation at the highest levels. He stressed that procurement processes in a democracy must follow established procedures to protect institutional integrity and avoid legal challenges.

Singh stated that several procurement programmes are progressing and expressed hope that some would translate into signed contracts before the end of the current calendar year.

On DRDO, he said reforms have begun to clarify roles and responsibilities, with the organisation expected to focus primarily on research and development rather than acting as a systems integrator or de facto OEM, except in a limited number of strategically critical areas.

He announced that, by November next year, technology for all conventional missile systems is expected to be transferred to private-sector companies willing to undertake production. The move is intended to allow DRDO to concentrate more heavily on advanced research activities.

The Defence Secretary said DRDO's resources are spread too thinly and indicated that substantial consolidation of its roughly 33 laboratories may be required. He added that scientists could be relieved of administrative responsibilities, including procurement-related processes, enabling greater focus on scientific work.

He also called for more natural recruitment practices, stronger project accountability and measures to reduce persistent time and cost overruns, while recognising DRDO's strong record in strategic programs, science and technology.

Government data shows private firms currently contribute about 21% to 25% of total defence production value, with Defence Public Sector Undertakings accounting for the majority. Singh said the long-term objective is for the private sector to contribute at least 50% of defence production.

Drawing on his experience at DPIIT, he advocated replacing the term "vendors" with "industry partners", arguing that industry, the armed forces, DRDO, public-sector enterprises, MSMEs, academia and Start-Ups should be viewed as parts of a single ecosystem working towards strategic autonomy.

Referring to Operation Sindoor, he noted that military commanders had directly approached industry for rapid supplies and equipment during periods of uncertainty. He said this demonstrated the need for a more balanced and sustained relationship between the services and industry.

The Defence Secretary highlighted that recent Union Budgets have reserved 75% of the capital procurement budget for domestic industry, up from 68% in FY2022-23. India's annual defence capital procurement allocation currently ranges from approximately ₹1.6 lakh crore to ₹1.8 lakh crore.

He described defence manufacturing as a major driver of economic growth, employment, military preparedness and self-reliance, and said stronger private-sector participation is essential to achieving these goals.

Singh stated that procurement processes have already accelerated, with a notable increase in contracts being signed. He added that extensive reforms to the Defence Acquisition Procedure are under way and are expected to receive final approval before year-end.

The reforms align with broader restructuring recommendations that have previously called for consolidating DRDO's laboratory network into a smaller number of core research centres and reducing duplication across facilities.

Looking ahead, he identified a domestic market opportunity of roughly ₹17 lakh crore to ₹21 lakh crore over the next decade, based on an annual defence budgetary outlay of about $20 billion to $25 billion. With 75% earmarked for domestic procurement, he said Indian companies have a substantial long-term opportunity to compete and grow.

He urged industry participants to avoid undermining one another and instead combine healthy competition with post-contract collaboration to ensure timely delivery and execution.

Singh also said the government is seeking to dismantle public-sector monopolies wherever possible. He cited the opening of the munitions sector to wider participation and reiterated the objective of having at least two, and potentially three, fighter-aircraft manufacturers in India through initiatives including the AMCA program.

To address rapidly evolving technologies, particularly drones and other short-cycle systems, he said the Ministry is delegating greater authority and promoting spiral development models. Fast-track procurement, he argued, should become routine rather than exceptional.

He added that the government is examining quicker trial mechanisms, no-cost and no-liability evaluations, and wider use of trial-cost reimbursement provisions to lower barriers for Start-Ups and MSMEs.

The broader aim, according to Singh, is to create a level playing field that enables Indian firms to integrate into global defence supply chains linked to friendly countries and regions.

His remarks come as the Ministry continues efforts to expand private-sector participation following the corporatisation of the former Ordnance Factory Board into seven Defence Public Sector Undertakings and the opening of additional defence manufacturing categories to licensed private companies.

ANI