Ministry of Defence Proposes Major Reset in Procurement Strategy
India’s Ministry of Defence (MoD) has proposed a significant overhaul of its defence procurement framework, shifting its focus from simply manufacturing equipment domestically to ensuring full Indian ownership of critical defence technologies.
Under the draft Defence Acquisition Procedure (DAP) 2026, the government aims to prioritise indigenous design, intellectual property ownership, and sovereign control over upgrades and system integration. The move marks an evolution from the earlier “Make in India” emphasis toward what officials describe as an “Owned by India” model.
The draft policy has been released for stakeholder consultation before finalisation.
From Local Manufacturing to Strategic Ownership
While earlier defence procurement policies encouraged local production through foreign partnerships and technology transfers, the proposed DAP 2026 places stronger emphasis on:
- Indigenous research and development
- Retention of intellectual property rights
- Control over source codes and software systems
- Independent upgrade capabilities
- Reduced long-term reliance on foreign suppliers
The shift reflects growing concerns that domestic assembly without full technology ownership can limit operational flexibility and long-term strategic autonomy.
Why the Change Matters
India is one of the world’s largest defence importers. Despite progress in domestic manufacturing, several key platforms still depend on foreign systems for upgrades, spare parts, or software access.
By moving toward an “Owned by India” framework, the government seeks to:
- Strengthen national security autonomy
- Enhance domestic defence innovation
- Support private-sector participation
- Reduce lifecycle costs of defence systems
- Improve export competitiveness
The draft also aligns defence procurement more closely with broader economic goals, linking capital spending to domestic industrial growth and job creation.
Faster Procurement for Emerging Technologies
Recognising rapid technological advancements, the draft policy proposes streamlined acquisition processes for next-generation systems, including:
- Artificial intelligence and autonomous platforms
- Cybersecurity infrastructure
- Space and satellite systems
- Advanced drones and robotics
The aim is to ensure faster induction of critical technologies while maintaining oversight and accountability.
Increased Budget Allocation for Domestic Procurement
The Union Budget has significantly expanded capital allocations for domestic defence procurement, with a large share of acquisition spending earmarked for Indian suppliers.
This financial backing reinforces the government’s long-term goal of building a globally competitive defence industrial base capable of both meeting domestic demand and expanding exports.
Strategic Implications
If implemented, DAP 2026 could reshape India’s defence ecosystem by encouraging deeper technology development within the country rather than focusing solely on local assembly.
Industry experts suggest the policy could boost private sector participation, accelerate innovation, and improve collaboration between defence forces and domestic manufacturers.
The consultation phase will determine how the final policy balances speed, transparency, and industrial capability while maintaining national security priorities.
