The Ministry of Defence (MoD) is on the verge of finalising crucial updates to the Defence Acquisition Procedure (DAP) 2020.
The modified guidelines are currently undergoing the final phases of internal assessment.
Authorities are preparing to publish a draft of the revised procedures in the near future.
This upcoming release will provide armed forces, industry representatives, and defence analysts an opportunity to review the proposed adjustments and submit their observations prior to the official implementation.
Originally introduced to streamline military purchases and mandate higher indigenous content, the DAP 2020 is now being fine-tuned to reflect the evolving strategic needs of the sector.
Initial indications from the MoD offer a positive outlook for the local defence production ecosystem.
A key point of debate during the review has been the classification of wholly-owned subsidiaries established in India by foreign Original Equipment Manufacturers (OEMs).
Insiders report that policymakers have decided against granting these foreign-backed entities the exact same procurement privileges as fully indigenous companies.
Domestic defence enterprises are likely to embrace this decision, as they have consistently maintained that treating foreign subsidiaries equally would undermine the core principles of true indigenisation.
A prominent feature of the upcoming amendments is the drastic simplification of how military hardware is categorised for purchase.
The existing DAP 2020 framework features five primary acquisition pathways, which include 'Buy (Indian)' and 'Buy (Global)'.
However, the revised draft is projected to condense these down to a mere three priority categories: 'Buy (Indian–IDDM)'—which requires at least 50% indigenous content—alongside 'Buy and Make (Indian)', and 'Buy Global (Manufacture in India)'.
By eliminating overlapping routes, the MoD intends to remove confusion, accelerate purchasing timelines, and prevent any misunderstandings in how policies are interpreted.
Trimming down the acquisition categories underlines the government's strong commitment to local design and production capabilities.
Simultaneously, it preserves a clear channel for acquiring advanced foreign technology, provided that the actual manufacturing takes place on Indian soil.
Defence planners are confident that this more efficient setup will establish a highly predictable environment for both military planners and private vendors.
Ultimately, these structural reforms are designed to heavily reinforce the goals of the Atmanirbhar Bharat (Self-Reliant India) mission.
Even though the official draft has not yet been circulated, the upcoming public review period is anticipated to draw significant participation from private companies, Defence Public Sector Undertakings (DPSUs), and international suppliers.
After evaluating and integrating the received feedback, the finalised DAP will likely serve as the foundational blueprint for India’s military procurement for the next ten years.
The revised policy aims to strike a vital balance between equipping the armed forces rapidly and nurturing a strong, globally competitive local defence industry.
