India’s military procurement framework is preparing for a significant overhaul as the Ministry of Defence finalises the Defence Acquisition Procedure (DAP) 2025.
A high-level committee, tasked with reviewing the existing DAP 2020, has proposed a series of industry-friendly reforms designed to speed up modernisation and deepen the 'Aatmanirbhar Bharat' (Self-Reliant India) initiative.
Committee Recommendations
The review committee, established in June 2025 under the chairmanship of the Director General (Acquisition), includes former bureaucrat Apurva Chandra as its principal adviser.Over the past six months, the panel has held extensive discussions to draft recommendations that address persistent bottlenecks in the system.
Their primary focus has been on removing entry barriers for domestic companies, reducing procurement timelines, and ensuring that self-reliance goals do not compromise the immediate operational readiness of the Armed Forces.
Phased Approach to Indigenous Content
One of the most transformative proposals is the introduction of a "graded" approach to Indigenous Content (IC).Under the current DAP 2020 rules, categories such as 'Buy (Indian-IDDM)' require vendors to prove a minimum of 50 per cent indigenous content right from the start. This rigid threshold has often proved difficult for smaller firms to meet immediately.
The proposed DAP 2025 seeks to replace this with a phased structure.
For example, a vendor might be allowed to start with 30 per cent indigenous content in the first year of a contract, with a mandate to progressively increase this figure to meet the full requirement over a set period.
This flexibility is intended to help Indian startups and MSMEs build their supply chains gradually without being disqualified at the initial stage.
New Single-Vendor Route for Urgent Needs
To address urgent technical requirements, the committee has recommended a special "single-vendor" procurement route strictly for Indian companies.This mechanism would be capped at projects worth up to ₹100 crore and is aimed at specialised, low-cost equipment such as small drones or night-vision devices.
Unlike the traditional process, which requires time-consuming competitive bidding, this route would allow the government to place immediate orders with a capable domestic manufacturer.
If the equipment proves reliable over a period of five to six years, the vendor could then transition to larger orders through a fast-track process.
This move is expected to significantly boost domestic research and development (R&D) while solving immediate shortages.
Broadening the Definition of ‘Indigenous’
The upcoming policy also proposes technical changes to how indigenous content is calculated."Buyer Nominated Equipment"—systems that the military specifically asks to be integrated into a larger platform—may now be eligible to count towards the total indigenous percentage.
Additionally, components that are designed and developed in India but sent abroad for specific processing (such as semiconductor fabrication or specialised coating) will likely be recognised as indigenous upon their return.
This change acknowledges the realities of the global supply chain while still rewarding Indian design innovation.
Streamlining Vendor Qualification
Finally, to reduce delays caused by legal disputes and unqualified bids, DAP 2025 is expected to introduce a robust vendor qualification framework.By rigorously pre-screening manufacturers to ensure they have the necessary financial and technical capability, the Ministry aims to limit tenders to serious players only.
This measure is designed to prevent the frequent stalling of procurement deals due to litigation or the participation of non-serious bidders.
