India Eyes Major Overhaul Of Defence Acquisition Procedure To Speed Up Procurement And Promote Indigenous Tech

In a significant move under the 2025 ‘Year of Reforms’ agenda, the Ministry of Defence (MoD) has initiated a comprehensive review of the Defence Acquisition Procedure (DAP) 2020 to bring it in sync with Central government's policy priorities and modernisation goals.

A high-level committee, headed by the Director General (Acquisition), has been constituted to conduct extensive deliberations with all stakeholders.

The panel includes senior defence officials, industry leaders, and academics.

Former IAS officer and ex-DG (Acquisition) Apurva Chandra (1980 batch), has been appointed Principal Advisor to the committee.

According to the Defence Ministry, the initiative aims to:

• Meet the operational requirements and modernisation of the Armed Forces in a timely manner to ensure national security.

• Align acquisition procedures with GoI policies and initiatives to:

  1. Achieve Aatmanirbharta (Self-Reliance) by promoting technology infusion through indigenously designed and developed systems.

  2. Enable 'Make in India' by promoting defence manufacturing in India through facilitation of Joint Ventures and Transfer of Technology for the private sector, encouraging foreign OEMs via FDI alignment, and establishing India as a global Defence manufacturing and MRO hub.

  3. Promote Design & Development in both public and private sectors, with a focus on Startups, Innovators, and the Private Defence Industry for indigenous technology infusion.

The panel has already begun consultations and has invited suggestions from stakeholders by 5 July 2025.

The committe has sought stakeholder suggestions on the following: 

1. Policy/procedural changes to streamline acquisition processes, covering categorisation, ease of doing business, conduct of trials, post-contract management, Fast Track procedures, and adoption of new technologies such as AI.

2. Language improvements to eliminate ambiguity, remove inconsistencies, and enhance procedural clarity in the DAP.

3. Any other relevant issues that should be addressed in the review.

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