India’s Ministry of defence (MoD) is overhauling the Defence Acquisition Procedure (DAP) 2020 to speed up defence procurement while also addressing long-standing inefficiencies and delays. A high-level group, chaired by the Additional Secretary and Director General (Acquisition), has been created to analyse and reform the procurement system.
This committee intends to finish its task within six months, in line with the MoD’s decision to designate 2025 as the “Year of Reforms.” The revisions aim to cut the two-to-three-year time period necessary to develop a Request for Proposal (RFP), as well as shorten field evaluation trials and cost discussions.
Currently, India’s defence procurement cycle lasts 5-7 years, with field assessment trials alone taking up to three years. The current multi-stage procedure includes several bureaucratic impediments, such as vendor selection, bid review, and financial discussions.
These delays have resulted in serious capability gaps, notably for the Indian Air Force (IAF), whose active squadron strength has decreased dramatically due to ageing aircraft and delayed inductions.
The proposed improvements aim to speed each stage of the procurement process, resulting in faster purchases. The committee will consult with stakeholders from throughout the military ecosystem, including domestic commercial enterprises, global Original Equipment Manufacturers (OEMs), public-sector entities, startups, and think tanks.
By addressing industry concerns, the MoD hopes to develop a more responsive and transparent procurement structure that balances national security needs with the reality of the military market.
In the Union Budget for FY 2025-26, the MoD has been given ₹6,81,000 crore, with 1,80,000 crore planned for capital spending on defence services, including 1,49,000 crore for capital purchase.
However, the minor rise in capital expenditure emphasises the importance of optimising resource usage through procurement reforms. According to industry analysts, simplifying the purchase process is critical to properly modernising the armed services.
Furthermore, the MoD is proposing additional reforms to stimulate domestic manufacturing under the ‘Atmanirbhar Bharat’ project. This includes potentially prohibiting the purchase of foreign license-manufactured weapons systems unless domestic Indian enterprises own the Intellectual Property (IP) rights to these systems. This strategy attempts to lessen dependency on foreign defence equipment while increasing domestic manufacture.
