Special Report: India reforms defence procurement procedure

This chart shows the value of defence production in India during 2016–26, according to the Indian MoD. The statistics for 2025–26 do not represent the full year. (Janes/DDP)

India announced on 10 February an update to its Defence Acquisition Procedure (DAP), proposing changes to rules governing the procurement of military equipment.

The Ministry of Defence (MoD) said the new draft policy, which will replace the existing DAP that was introduced in 2020, aims to accelerate capital acquisitions, strengthen domestic capability development, and modernise the military.

According to the draft, India would co-develop and own the intellectual property of defence products procured under the new DAP 2026, with the intent of shifting away from foreign equipment manufacturing in India and associated technology transfers.

Under the proposed draft DAP 2026, India would retain a defence product's technical rights such as the source code, critical design data, and upgrade authority. The policy calls for India to be a “design powerhouse of the world”.

Key elements in the draft include a preference for locally designed, developed, and manufactured purchases; revised financial and experience criteria for bidding; procurements focused on technological availability and manufacturing readiness; and changes to trials and quality assurance processes.

Faster procurement

Citing developments in artificial intelligence (AI), quantum computing, unmanned aerial vehicles (UAVs), and directed-energy weapons, the draft calls for faster procurement processes and equipment upgrades.

The document has also proposed “spiral designing” and procurement of major equipment, evaluating modern technologies before placing bulk procurements, reviewing indigenous content and design, and greater consumption of domestic defence materials.

“The Defence Acquisition Procedure 2026 is structured to ensure that acquisition decisions are strategically aligned with national security priorities, procedurally sound, economically prudent, and geared toward long-term industrial transformation,” the document said.