MoD proposes higher indigenous content in defence procurement

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The Ministry of Defence (MoD) is looking to introduce major changes to the defence acquisition process by giving greater weightage to domestic manufacturers.The MoD has released a draft to revamp the Defence Acquisition Procedure (DAP), laying down clearer parameters for defining “indigenous design” of equipment, weapons and systems.It is also proposing to raise the minimum requirement for indigenous content in defence equipment. Currently, the benchmark is 50 per cent, which is proposed to be increased to 60 per cent for indigenously designed, developed and manufactured products.The revised DAP is aimed at promoting jointness, self-reliance and force modernisation, while speeding up acquisition timelines and scaling up production by the domestic defence industry.The new procedure will replace the existing DAP 2020 and seeks to strengthen India’s defence industrial ecosystem, reduce import dependence and streamline procurement through higher indigenous content mandates and innovative acquisition categories.Under the proposed changes, subject experts will be involved in finalising specifications for equipment, with greater oversight during trials. New procedures are also being introduced for long-term bulk acquisitions.A new procurement category based on “Technology Readiness Level” has been proposed to benchmark the maturity of required technologies.The draft also proposes allowing procurement even if only a single vendor qualifies, provided the product is sourced from within India. Current rules prohibit purchases in cases where only one vendor meets technical parameters.In addition, a framework will be introduced to appoint a domestic “development-cum-production partner” for projects led by the Defence Research and Development Organisation (DRDO).The MoD said the revised DAP aims to align defence acquisitions with evolving geo-strategic challenges, economic growth and the expansion of India’s private defence industry.The draft also proposes faster procedures for equipment with short technological cycles, pragmatic evaluation of indigenous content and greater utilisation of indigenous military materials. The MoD said the new policy would boost defence manufacturing and exports, while restricting imports to only critical requirements.

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