By N. C. Bipindra
When the Defence Procurement Procedure (DPP) 2016 introduced the Buy (Indian–IDDM) category — short for Indigenously Designed, Developed and Manufactured — it marked a bold step toward genuine self-reliance in defence production.
The man behind this visionary reform, then Defence Minister Manohar Parrikar, wanted to ensure that Indian ingenuity would finally take centre stage in equipping the nation’s armed forces.
However, nearly a decade later, that dream stands at a crossroads. What was meant to empower India’s defence innovators is now being systematically diluted, ironically, from within the same corridors of power that once championed it.
Rise of ‘Shortcut Culture’: How Emergency Procurement Took Over
In 2020, the Defence Acquisition Procedure (DAP) introduced an enhanced version of the Fast Track Procedure (FTP) — specifically the Emergency Procurement (EP) mechanism.
This provision was designed for rapid, wartime-like acquisitions of up to INR 300 crore, allowing the Armed Forces to bypass the labyrinthine bureaucracy of the Ministry of Defence (MoD).
During the 2020–22 China border crisis, this mechanism proved invaluable. India’s armed forces, facing an aggressive and well-equipped adversary along the Line of Actual Control (LAC), needed to plug capability gaps quickly.
The EP route delivered results — drones, surveillance systems, protective gear, and ammunition arrived on time, reinforcing operational readiness when it mattered most.
The MoD proudly touted these successes as examples of “Atmanirbhar Bharat (Self-Reliant India) in action.” Start-ups and MSMEs were encouraged to pitch innovative solutions, and many received contracts under the Buy (Indian–IDDM) category even if they had not yet achieved full compliance with stringent technical standards.
But fast-forward to May 2025, and the story took a troubling turn.
Operation Sindoor: A Reality Check for India’s Defence Innovation Drive
The Indian military’s Operation Sindoor, a swift and decisive response to the Pahalgam massacre against terror infrastructure and military assets inside Pakistan and Pakistan-occupied Kashmir, exposed serious operational shortcomings.
Some systems acquired from new domestic defence start-ups, hailed as symbols of Indian innovation, failed under real combat conditions.
The failure triggered alarm bells within the Military Services Headquarters. Suddenly, the same military leadership that had celebrated India’s indigenous start-ups began gravitating toward the safer, more flexible Buy (Indian) category instead of Buy (Indian–IDDM).
This category allows for technology imports through local assembly, meaning Indian firms can simply act as integrators for foreign-designed systems. It provides faster results but at the cost of true technological self-reliance.
The shift has serious implications. Companies that invested heavily in research, development, and intellectual property (IP) ownership are now being sidelined in favour of those assembling imported technologies. India risks sliding back into a pattern of “assemble-in-India” rather than “Make in India.”
The Bureaucratic Bypass: When Policy Intent Meets Ground Reality
What began as an instrument of urgency — emergency procurement — has slowly become a bureaucratic bypass. Civil and military officials have learned to exploit the flexibility of EP procedures, often circumventing the spirit of the Buy (Indian–IDDM) initiative.
By pushing contracts through the EP route or reclassifying them under the Buy (Indian) category, officials can expedite acquisitions without the complex scrutiny and evaluation that IDDM projects demand.
While this accelerates procurement, it simultaneously undermines innovation, as start-ups and indigenous developers are denied a level playing field.
Ironically, the very system designed to foster Atmanirbhar Bharat (Self-Reliant India) now risks eroding it from within.
Lessons from Global Defence Giants: How Other Nations Protect Local Industry
India is not the first country to face the dilemma of balancing urgency with self-reliance. Yet, other leading defence powers have managed to reconcile the two through smart policy frameworks.
- United States: Under the Buy American Act and Defence Federal Acquisition Regulation Supplement (DFARS), US firms with proprietary IP and domestic manufacturing enjoy priority in defence tenders. Flexible provisions like post-RFP “Justification and Approval” enable the Pentagon to reorient acquisitions to favour local companies without violating fairness norms.
- Israel: Known for its agile procurement ecosystem, Israel routinely reclassifies tenders to award contracts directly to domestic innovators, especially when their IP offers unique strategic value.
- France: The French government builds embedded preference clauses into its RFPs, ensuring that local industry leaders remain central to national defence capability development.
The message is clear: strategic urgency and support for domestic innovation are not mutually exclusive. India must adapt these lessons before its self-reliance agenda loses credibility.
The Way Forward: Corrective Steps to Revive ‘Make in India’ in Defence
If India is to reclaim the spirit of the Buy (Indian–IDDM) vision, policymakers must act swiftly. The following corrective actions, inspired by global best practices, can help recalibrate the system toward genuine self-reliance:
- Mandate IDDM Preference During Evaluations: Issue MoD guidelines ensuring Buy (Indian–IDDM) entries receive priority during Technical Evaluation Committee (TEC) and field trial stages—even when competing under broader Buy (Indian) categories.
- Direct Awards for Sole IDDM-Compliant Bidders: Allow direct contracting when a single vendor meets full IDDM criteria, following due diligence on IP ownership and localisation levels.
- Apply L1 Principle Only Among IDDM Vendors: Restrict the “lowest bidder” competition to IDDM-qualified firms. This ensures that cost efficiency does not come at the expense of technological sovereignty.
- Review Past Emergency Procurements: Establish a joint review mechanism involving the MoD, DRDO, and industry representatives to retrospectively assess emergency purchases and identify overlooked IDDM solutions.
- Provide Financial Incentives: Offer tax rebates, advance payments, and easier credit lines to IDDM vendors, mirroring incentives available to domestic defence firms in the US and Europe.
These reforms can restore faith among indigenous developers and reaffirm India’s commitment to self-reliance in the strategic domain.
The Stakes: Beyond Policy, A Question of National Pride and Strategic Autonomy
India’s defence innovation ecosystem is vibrant. Over 400 start-ups, supported by the Innovations for Defence Excellence (iDEX) framework, are designing everything from AI-enabled drones to next-gen communication systems.
But without consistent policy protection, their breakthroughs may never reach the battlefield.
The long-term danger is clear: If Indian defence firms are reduced to mere assemblers of imported technology, the nation’s strategic autonomy will remain perpetually vulnerable.
Every crisis will force India to look abroad for critical solutions, a dependency that undermines both sovereignty and deterrence. After all, the budgetary cost is also the foremost national cost.
To avoid this fate, India must reaffirm its faith in its own innovators. It must trust its engineers, scientists, and start-ups, the very people Manohar Parrikar envisioned leading India into a new era of defence capability.
The Battle for Self-Reliance Begins at Home
The spirit of Atmanirbhar Bharat (Self-Reliant India) cannot survive on slogans alone. It demands consistent policy enforcement, institutional integrity, and political will.
If the Defence Ministry fails to prioritise Buy (Indian–IDDM) and continues to favour expediency over innovation, India risks losing a generational opportunity to establish itself as a global defence power.
The choice is stark: reclaim the original promise of IDDM or risk becoming the world’s most powerful assembly line for foreign technology.
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