AI, Cyber Security, Quantum, Robotics Core of Aatmanirbhar Bharat's Defence Future: Rajnath Singh on New-Gen Vision for Armed Forces

India will introduce a new Defence Acquisition Procedure (DAP) to accelerate domestic defence production and procurement, Defence Minister Rajnath Singh said while speaking at Republic Forces First Conclave: Bharat The Defence Powerhouse, as the government increases efforts to build a self-reliant military manufacturing ecosystem and reduce dependence on imports.

The policy overhaul comes at a time when defence production, startup participation and private-sector investment are expanding rapidly, supported by government procurement preferences and growing military spending.

“This year we are introducing a new DAP, Defence Acquisition Procedure. Because of this, defence production will get a new speed and a new power,” Singh said.

Domestic industry gets larger share of military spending

Singh said the government’s procurement framework has been redesigned to ensure defence modernisation spending benefits domestic manufacturers. He said, “The modernization of the Indian army should benefit the Indian industries." According to him, 75% of the military modernisation procurement budget has been earmarked for purchases from Indian industry. This creates a good pipeline of orders for defence manufacturers, state-run firms, and private companies.

New Delhi has been pushing for defence indigenisation, which has favoured locally developed systems under procurement categories prioritising domestic content.

Startups and MSMEs 

Rajnath Singh noted the growing role of startups and MSMEs in India’s defence supply chain, an area that has attracted increasing policy support in recent years. He said, “We have engaged 676 startups and innovators through iDEX till March 2026. And we have also signed 551 contracts." 

The Defence Ministry has approved procurement worth more than Rs 2,400 crore from startups and MSMEs and sanctioned over Rs 1,500 crore worth of projects for next-generation technologies, he added. Areas receiving support include drones, artificial intelligence, quantum technologies, robotics and cybersecurity.

The minister said India’s defence sector now hosts more than 2,000 startups, indicating a shift from a state-dominated industry toward a broader, innovation-driven ecosystem.

Defence corridors attract investment

He also said defence industrial corridors in Uttar Pradesh and Tamil Nadu are helping attract manufacturing investments and integrate Indian firms into global supply chains, with proposals worth about Rs 70,000 crore having been received across the two corridors, with approximately Rs 10,000 crore already invested.

The projects are expected to support advanced defence manufacturing, create jobs and strengthen local supplier networks over the next few years.

Collaboration between government-owned defence firms and private industry has accelerated under the government’s push for self-reliance. He added, “The private and public sectors are standing shoulder to shoulder." 

He further added that defence manufacturing has evolved from a closed government-led model into a wider industrial ecosystem which involves startups, large companies, MSMEs, research institutions and innovation centres.

For investors, the upcoming DAP could be closely watched for potential changes in procurement processes, localisation requirements and incentives aimed at expanding India’s defence manufacturing base.

Also read: Rajnath Singh Highlights India’s Defence Manufacturing Revolution