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flag India launched new defence procurement rules on Oct. 23, 2025, to boost local manufacturing and streamline acquisitions.

flag India launched the Defence Procurement Manual (DPM) 2025 on October 23, 2025, effective November 1, aiming to streamline defence acquisitions, boost domestic manufacturing, and enhance operational readiness. flag Key changes include capping liquidated damages at 10% for delays and reducing penalties for indigenised items to 0.1% per week from 0.5%. flag The manual allows assured orders for up to five years for domestic products, supports MSMEs and startups, and permits limited tenders for contracts up to Rs 50 lakh. flag It removes outdated requirements, enables upfront funding for work growth, and updates procurement rules for innovation and technology. flag All new Requests for Proposals after November 1 will follow DPM 2025, while older ones remain under the 2009 framework.

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