Video: India Adopts US Style War Supply Chain Model

The Ministry of Defence has revised the Revenue Procurement Manual, eliminating the mandatory NOC from Munitions India Limited for private companies to enter ammunition production. This major reform, under the Defence Procurement Manual 2025 approved by Defence Minister Rajnath Singh, paves the way for private firms to manufacture vital munitions like 105mm and 155mm shells, Pinaka rockets, mortar rounds, and 1,000-pound aerial bombs.

Aligned with the Atmanirbhar Bharat initiative, the move mirrors the US wartime supply chain model by integrating private sector speed and innovation to strengthen India’s defence preparedness. With lessons drawn from the Ukraine–Russia conflict exposing supply vulnerabilities, India seeks to build a robust, hybrid system that reduces dependency on public units.

Leading players like Reliance Infrastructure, Tata Group, and L&T are investing over ₹5,000 crore to ramp up output and address critical shortfalls, aiming to double production within two years. This policy shift not only fortifies national security but also positions India as a key exporter, with defence exports already reaching ₹23,622 crore in FY 2024–25.