India may again allow overseas manufacturers to hire defense agents for securing contracts for their principals. This step has been taken per new guidelines mentioned in the 2016 Defense Procurement Procedure policy, according to an Indian Ministry of Defense official quoted in Defense News.
“The main aim of the new policy (allowing agents) is to place responsibility and pressure on the OEM into bringing transparency to the existing relationships (while dealing with defense deals) in India. said the official, who spoke on condition of anonymity.
The guidelines further stipulate that the overseas defense company which is hiring the agent must provide necessary inputs and inspection of relevant financial documents and contracts between the vendor and the agent. The Ministry of Defense reserves the right to exercise veto power at any point in time against an agent proposed by the overseas defense company. The official explained, “India wants to bring more transparency in the working of defense agents, wants to identify the people who are representing the OEMs so that they can bring the transactions of these individuals within tax and general scrutiny.”
Last updated: December 26th, 2025
