The Indian government has strengthened its "Make in India" and "Aatmanirbharta" (self-reliance) initiatives by implementing significant amendments to the Defence Acquisition Procedure (DAP) 2020.
These changes, driven by recommendations from the Defence Acquisition Council (DAC), push to streamline domestic defence procurement while driving indigenous production in the sector.
Key Policy Shifts
The amended DAP introduces several key modifications designed to supercharge domestic manufacturing and curtail practices that might stifle the growth of India's defence industry:- Heightened Indigenous Content Mandate: Defence procurement cases now require a minimum of 50% indigenous content, encompassing materials, software, and technology. This ensures a larger share of defence spending supports Indian companies.
- Improved Testing Access: The government will make defence testing infrastructure more accessible to domestic manufacturers. This will help companies expedite the testing process, potentially accelerating product development cycles.
- Discouraging Re-badged Imports: To curb the practice of re-selling foreign weapons with minimal Indian input, the DAP mandates that domestic companies have complete know-how of imported Line Replaceable Units (LRUs). Additionally, there's a greater emphasis on developing indigenous alternatives for imported components.
- Domestic Manufacturing Priority: To further promote local production, at least 50% of the total indigenous content must come from materials, components, and software manufactured within India. Authorities may relax this rule after careful review of cases with strong justifications.
Long-Term Implications
The revised DAP 2020 could have far-reaching effects on India's defence landscape.By empowering domestic manufacturers and encouraging local innovation, the country aims to reduce its reliance on foreign arms imports.
This shift could bolster India's strategic autonomy and create significant economic opportunities within the defence sector.
