India has issued its strongest warning yet to defence manufacturersโboth Indian and foreignโdeclaring that delays in military deliveries will now result in outright cancellation of contracts. The message was delivered by Defence Secretary Rajesh Kumar Singh during the National Security Summit in New Delhi on 28 November.
Zero-Tolerance Policy for Delays
Singh stressed that the Ministry of Defence (MoD) will no longer tolerate missed deadlines in critical procurements. Under the revised policy for emergency purchases, suppliers must deliver equipment within one year of contract signing. Any failure will lead to automatic foreclosure of the deal, without exceptions.
The move aims to curb a long-standing culture of overpromising and underdelivery in defence manufacturing โ an issue recently highlighted by Air Chief Marshal Amar Preet Singh, particularly concerning delays in TEJAS MK-1A fighter jet production.
Global Delays Also Under Scrutiny
The Defence Secretary noted that supply disruptions are not limited to domestic programmes. India has faced delays from multiple international partners, including:
- Russia โ Slow delivery of S-400 Triumf systems (called Sudarshan Chakra in India) due to the Ukraine conflict
- Israel โ Lagging timelines for critical defence equipment
- General Electric (USA) โ Slippage in engine delivery schedules
Indiaโs $5.4 billion S-400 deal, signed in 2018, has seen major delays, with the remaining fourth and fifth squadrons now expected only in 2026.
Singh said such setbacks strengthen the need for universal accountabilityโevery vendor, regardless of origin, must meet contractual obligations on time.
Breakthrough in Indigenous Jet Engine Programme
In a key development, Singh revealed that India is close to finalising a partnership with a leading international engine manufacturer to co-develop a 120 kN fighter jet engine. The engine will be fully manufactured in India with complete control over intellectual property rights.
This 10โ12 year project will complement Indiaโs ongoing negotiations with Franceโs Safran for the AMCA fighter engine under a government-to-government arrangement. Official approval at the highest level is expected soon.
Reforms Under DAP 2020 to Accelerate Procurement
Singh emphasised that 2025 has been marked as the โYear of Reforms,โ with major changes underway in the Defence Acquisition Procedure (DAP) 2020. These include:
- Faster user trials
- Streamlined cost negotiations
- Reduced procurement cycle times
- Greater emphasis on proven foreign systems for urgent needs
The reforms aim to enhance Indiaโs operational readiness by eliminating procurement bottlenecks, especially after lessons learned from the Ladakh standoff and other recent conflicts.
Clear Message to Industry
With the new policies, the government intends to:
- Enforce strict delivery timelines
- Improve accountability across the defence manufacturing sector
- Strengthen preparedness through timely induction of platforms
- Support domestic manufacturing under Aatmanirbhar Bharat
Indiaโs warning is unambiguous: vendors who fail to deliver on time will lose business. The MoDโs firm stance aims to ensure that the armed forces receive critical systems without delay, strengthening national security in an increasingly volatile neighbourhood.
