Defence Acquisition Overhaul: Graded Local Content, Single-Vendor Mode Proposed

India
M
Moneycontrol•16-12-2025, 09:21
Defence Acquisition Overhaul: Graded Local Content, Single-Vendor Mode Proposed
- •India's defence procurement framework is set for an overhaul, moving from DAP 2020 to a faster, more responsive DAP 2025.
- •Proposed changes include a shift to graded indigenous content norms, allowing vendors to meet thresholds over several years.
- •A new limited single-vendor procurement route for Indian entities is suggested for specialized, lower-cost equipment (up to Rs 100 crore) to boost R&D.
- •The scope of indigenous content will expand to include Buyer Nominated Equipment and Indian-developed components processed overseas.
- •A defined vendor qualification framework and incentives for technology transfer are also proposed to streamline procurement and strengthen the defence industrial base.
Why It Matters: India's defence procurement overhaul strengthens military self-reliance and local industry.
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