By N. C. Bipindra

New Delhi: The Ministry of Defence (MoD) has released the draft Defence Acquisition Procedure (DAP) 2026, marking a major shift in India’s defence procurement policy from “Made in India” to “Owned by India.” The draft, which will replace DAP 2020 after approval, has been placed in the public domain for comments from stakeholders and citizens until March 3, 2026.

DAP 2026 anchors India’s defence modernisation in Jointness, Atmanirbharta (self-reliance) and Innovation (JAI), while introducing structural reforms aimed at accelerating acquisition timelines, strengthening indigenous intellectual property ownership, improving lifecycle cost management and boosting defence exports. The document describes the coming decade as a decisive phase in India’s defence trajectory, linking capital acquisition directly with industrial growth and strategic autonomy.

One of the most consequential changes in the draft procedure is its doctrinal departure from traditional Transfer of Technology (ToT)-driven indigenisation. Instead of assembling foreign-origin systems in India, the new framework prioritises co-development, intellectual property ownership and retention of source codes and critical design data within Indian entities. The emphasis shifts toward ensuring that Indian companies have upgrade authority and long-term control over systems, positioning India as a global design and development hub rather than merely a manufacturing destination.

The draft also integrates defence exports into procurement strategy, setting a target of achieving ₹50,000 crore in annual defence exports by 2030, with ambitions to scale even higher by 2036. Exportability will become a desirable Qualitative Requirement in the development of new platforms, and the armed forces will provide certification support to help Indian systems gain international acceptance with limited additional trials. The procedure further simplifies processes for Inter-Governmental Agreements, strengthening India’s position as a Net Security Provider in the Indian Ocean Region and among countries of the Global South.

Recognising that rapid technological change poses a greater challenge than budget constraints, DAP 2026 introduces procurement protocols tailored for fast-evolving domains such as Artificial Intelligence, Quantum Computing, advanced drones and Directed Energy Weapons. The draft underscores that software has become as critical as hardware in multi-domain warfare and places significant emphasis on upgradeability and spiral development cycles to prevent obsolescence. It institutionalised Civil-Military Fusion by enabling the armed forces to procure commercial-off-the-shelf technologies, including drone swarms, space-based systems and cyber tools, with minimal customisation.

The categorisation framework reinforces a clear order of preference, with Buy (Indian–IDDM) as the top priority when eligible Indian vendors meet indigenous design and content requirements. Even single-vendor cases are permitted under this category if certified Technology Readiness Levels are met. If IDDM conditions cannot be satisfied, the hierarchy moves to Buy (Indian) and Manufacture in India, followed by Buy (Global) and Manufacture in India, and finally Buy (Global). Equipment listed in the Positive Indigenisation Lists cannot be procured under Buy (Global), tightening restrictions on imports and reinforcing domestic production.

DAP 2026 strengthens the Development scheme by expanding the Make categories. Make-I projects will continue to receive government funding for prototype development, while Make-II projects remain industry-funded. Make-III focuses on indigenous manufacturing and maintenance capabilities. Innovation pathways such as iDEX and the Technology Development Fund are elevated to mainstream acquisition routes, integrating MSMEs and start-ups into capital procurement. Design and Development projects undertaken by DRDO, DPSUs and central research agencies are also embedded within this framework to address high-risk or critical technology requirements.

A new acquisition planning architecture introduces a 10-year Integrated Capability Development Plan, divided into two five-year Defence Capital Acquisition Plans, along with an Annual Acquisition Plan. A Technology Perspective Capability Roadmap will be made available to guide industry investments and facilitate smoother transitions from development to production. Technology Readiness Levels and certification mechanisms will play a greater role in determining acquisition categories and timelines.

To accelerate procurement and improve ease of doing business, the draft moves from government-led quality inspections to self-certification and third-party certification models. Bank guarantee requirements have been rationalised to reduce financial strain on industry. The Fast Track Procedure has been refined to address urgent operational requirements, and a Low-Cost Capital Acquisition category allows procurement up to ₹75 crore per project under delegated powers. Leasing has been expanded as a financing mechanism to reduce upfront capital burdens.

The Strategic Partnership Model continues to serve as a key vehicle for enabling private Indian firms to act as system integrators, building domestic ecosystems that include MSMEs and specialised suppliers. The introduction of Long-Term Bulk Acquisition allows complex and capital-intensive platforms to be procured in tranches with progressive indigenisation and upgrade pathways built into the contract lifecycle.

While DAP 2020 laid the groundwork for indigenisation and procurement reform, DAP 2026 represents a more assertive policy posture that tightly integrates defence preparedness with economic growth, technological sovereignty and export competitiveness. By linking acquisition decisions with intellectual property ownership, indigenous design, lifecycle sustainability and global outreach, the draft positions defence procurement as a central pillar of India’s journey toward strategic autonomy and great power status by 2047.

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