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The Indian government has implemented amendments to the Defense Acquisition Procedure (DAP) 2020, following recommendations by the Defense Acquisition Council (DAC). These changes aim to further promote “Make in India” and “Aatmanirbharta” (self-reliance) within the country’s defense industry, while also streamlining the Ease of Doing Business for domestic companies.

These amendments are expected to significantly boost domestic defense production capabilities. By mandating a higher indigenous content threshold and facilitating access to testing facilities, the government aims to create a more conducive environment for Indian companies. Additionally, the requirement for complete know-how of imported components pushes them towards developing indigenous alternatives, furthering the “Aatmanirbharta” goal.

Key Changes:

  • Indigenous Content Requirement Increased: A minimum of 50% indigenous content is now mandatory for all procurement cases. This requirement applies specifically to materials, software, and technology used in the defense equipment.
  • Enhanced Testing Infrastructure Access: The amended DAP aims to make defense testing infrastructure more readily available to domestic companies. This will streamline the testing process and expedite production timelines.
  • Curbing Re-badged Imports: The new DAP seeks to reduce instances of foreign weapons being sold in India with minimal localization. Local companies must now possess complete know-how of any imported Line Replaceable Units (LRUs) and commit to replacing them with indigenous alternatives when required.
  • Focus on Domestic Manufacturing: At least 50% of the overall indigenous content must comprise materials, components, and software manufactured in India. Relaxation of this requirement will be considered on a case-by-case basis with proper justification presented to the authority granting Approval of Necessity (AoN).

Overall, the revised DAP 2020 reflects the Indian government’s commitment to fostering a self-reliant and robust domestic defense industry.