Another key recommendation aims to encourage home-grown innovation and R&D through a special single-vendor procurement route for Indian entities. (Photo for representational purpose only)
India
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Moneycontrol16-12-2025, 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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