Archive · 25 Oct 2025
Defense Procurement Manual 2025 Prioritizes MSMEs, Startups
The Ministry of Defence has released a new manual for buying equipment.
This manual aims to help small businesses and startups.
It requires at least 25% of purchases to come from these smaller companies.
Startups get special treatment, like not needing to prove they've sold things before.
The goal is to make it easier for these businesses to get involved in defense and to improve the country's ability to make its own military supplies.
The manual also wants to speed up the process of buying what the military needs.
The Defence Procurement Manual (DPM) 2025 introduces a 25% product reservation for Micro and Small Enterprises (MSMEs).
The manual offers relaxations for start-ups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT).
Defense armament imports, major weapon systems, missiles, and military equipment spares are not included in the 25% target.
MSMEs and start-ups are exempted from bid security or earnest money deposits (EMD).
The new manual seeks to enhance fairness, transparency, and accountability while expediting decision-making.
- Who
- Ministry of Defence, MSMEs, and Startups
- What
- Released the Defence Procurement Manual 2025, prioritizing MSMEs and startups
- When
- October 24, 2025
- Where
- Not explicitly stated, but applies to defense procurement in India
- Why
- To boost domestic defense manufacturing, spur innovation, and streamline procurement.
- Manual Name
- Defence Procurement Manual 2025
- Released By
- Ministry of Defence
- MSME Reservation
- 25%
- Start-up Relaxations
- Prior turnover and experience requirements
- Procurement Value (FY26)
- ₹1 lakh crore
- Publication Date
- October 24, 2025