India's defence budget for 2025–26 crossed ₹6.8 lakh crore, with the capital acquisition portion — the part that turns into tenders — at over ₹1.8 lakh crore. Defence procurement follows different rules than civilian procurement, and understanding those rules is the first step to entering this market.
Defence Acquisition Procedure (DAP 2020)
DAP 2020 replaced the earlier DPP and governs all defence capital acquisitions. Key procurement categories:
- Buy (Indian - IDDM) — indigenously designed, developed, and manufactured. Highest preference.
- Buy (Indian) — minimum 50% indigenous content
- Buy and Make (Indian) — technology transfer followed by local manufacturing
- Buy (Global - Manufacture in India) — foreign OEM must set up manufacturing in India
- Buy (Global) — direct import, used only as last resort
Make Categories for MSMEs
Make-I (Government Funded)
The government funds up to 70% of prototype development costs. Open to Indian companies with minimum 50% Indian ownership. Projects typically in the ₹10–250 crore range.
Make-II (Industry Funded)
No government funding for development, but guaranteed procurement order if the product meets specifications. Lower entry barriers, faster approval process. Preferred route for MSMEs and startups.
iDEX (Innovations for Defence Excellence)
Grants up to ₹1.5 crore for startups developing defence technologies. Focus areas: AI, cybersecurity, autonomous systems, new materials, sensors. Over 400 startups have received iDEX grants since launch.
Where Defence Tenders Are Published
- CPPP (eprocure.gov.in) — standard procurement by defence establishments
- BharatArmy portal — Indian Army procurement
- Defence PSU portals — HAL, BEL, BDL, BEML, Garden Reach each have their own eProcurement systems
- DRDO procurement — through individual DRDO lab websites and CPPP
- DDP (Department of Defence Production) — for policy-level and large acquisitions
Vendor Registration with Defence
- Ordnance Factory Board — vendor registration through OFBOS (Ordnance Factory Board Online System)
- Defence PSUs — each PSU has its own vendor registration. HAL, BEL, and BDL accept applications online.
- DRDO — vendor registration through individual labs. RDSO-like qualification process for specialized components.
- Security clearance — for sensitive items, vendors may need industrial security clearance from MHA.
What Makes Defence Tenders Different
- Offset obligations — for contracts above ₹2,000 crore, foreign vendors must invest 30% of contract value in Indian industry
- Long procurement cycles — from RFI to contract can take 2–5 years for capital equipment
- Trial and evaluation — products undergo field trials before order placement
- Confidentiality — some tender details are restricted. NDAs may be required to access full specifications.
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Find defence procurement opportunities across HAL, BEL, DRDO, and other defence establishments on Tenderkart.
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