The draft Defence Acquisition Procedure (DAP) 2026, released earlier this month, attempts to restructure India's defence procurement framework amid technological flux and the country's evolving military aspirations. The document's release comes at a critical time, as India prioritises jointness and self-reliance in light of recent standoffs with China and Pakistan. As the DAP explicitly describes itself as "the navigation chart for the middle leg of India's journey to 2047," it appears to prioritise cross-linkages between acquisition, industrial policy, and export strategy. There is a visible shift in priorities from "Made in India" to "Owned by India," moving beyond licensed production toward genuine design capability and ownership of intellectual property.
In addition, the document recognises that the challenge is not merely financial but also rooted in an outdated procurement system. It therefore introduces faster decision cycles through new, adaptive procedural frameworks, low-cost capital acquisition mechanisms, and long-term bulk procurement strategies. Notably, it integrates civil-military fusion, start-up innovation, and exports into the core acquisition process rather than treating them as marginal experiments.
Ideating Indigenisation
The conventional understanding of indigenisation appears to be evolving. Under the revised framework, what qualifies as indigenously designed (ID) requires that an Indian company not only manufacture in India but also own the design documents, software source code, circuit layouts, and core architecture of the system. It must possess sole rights to produce, upgrade, and export the product without requiring foreign approval each time. Purchasing a foreign design licence no longer qualifies as "Indian design" unless full ownership is transferred.
With extensive indigenisation as a priority, the Buy (Indian-IDDM) category receives significant emphasis. This category underscores ownership of design, source code, semiconductor layouts, and core system architecture, along with unconditional rights to manufacture, upgrade, and export. Additionally, ownership of all acquired intellectual property is to be classified as indigenous.
Alongside Indigenous Design (ID), Indigenous Content (IC) norms have also been tightened. IC is now calculated against a "Calculated Base Contract Price," with detailed definitions specifying what constitutes foreign content from production to final delivery. Category-wise thresholds mandate at least 60 per cent overall IC in Buy (Indian-IDDM), and at least 60 per cent IC in the manufacturing portion for Buy (Indian) and Buy (Global) & Manufacture in India. Even Buy (Global) is capped at up to 30 per cent IC and must be accompanied by a proposal for an indigenous Make or Design & Development pathway.
Prioritising Timelines in a Rapid Technological Era
In a rapidly evolving technological landscape-where artificial intelligence, drones, space technologies, and cyber tools develop in cycles of 18-36 months-traditional procurement processes often take longer than a single technological cycle. DAP 2026 introduces structural
reforms aimed at compressing timelines and better aligning acquisition cycles with technology cycles.
Planning is anchored in a 10-year Integrated Capability Development Plan (ICDP) and a two-year rolling Annual Acquisition Plan (AAP), with formal integration of Technology Readiness Levels (TRLs) into early planning. TRLs 1-5 are explicitly linked to the Make and Design & Development categories; TRLs 5-9 correspond to Buy (Indian-IDDM); and TRLs 8-9 align with Buy (Indian) & Manufacture in India and Buy (Global) & Manufacture in India. The Fast Track Procedure (FTP) is reoriented toward urgent procurement cases where standard timelines risk operational readiness, with preference given to equipment already in service or with proven performance abroad. The emphasis is on minimising trials and empowering committees with oversight authority rather than recreating the full acquisition cycle for emergent needs.
Civil-Military Fusion for Streamlined Production
DAP 2026's approach to civil-military fusion reflects one of its most significant strategic shifts. The Make categories are now explicitly linked to eventual procurement. Make-I projects involving high-risk, critical technologies may receive up to 70 per cent government funding for prototype development, capped at ₹400 crore per Development Agency, with provision for 100 per cent funding in select cases. Make-II and Make-III categories remain industry-funded, focusing on new development and import substitution, respectively.
The innovation ecosystem surrounding Innovations for Defence Excellence (iDEX) and the Technology Development Fund (TDF) is treated with similar seriousness. When an iDEX or TDF prototype successfully passes trials, the sponsoring Service is required to place a Minimum Pilot Order Quantity that is meaningful in scale. Importantly, DAP 2026 acknowledges the growing relevance of dual-use and civilian technologies. It recognises that the traditional divide between civil and military specifications has narrowed and encourages procurement of commercial off-the-shelf drone swarms, space assets, and cyber tools with minimal customisation.
Aligning Capability Enhancement, Jointness, and Export Ambition
DAP 2026 deliberately links defence modernisation with industrial growth and export strategy. It sets a target of ₹50,000 crore in annual defence exports by 2030, with higher ambitions by 2036, and further specifies that "exportability" will be considered a desirable qualitative requirement for new platforms to attract foreign customers. To support this objective, the Directorate General of Quality Assurance (DGQA) will issue standard certifications such as "Fit for Indian Military Use" and "Fit as per Vendor Certification," which Indian firms can use to reassure foreign buyers. For friendly countries, the document permits reduced trials where Indian systems have already been tested and accepted by Indian services.
Procedures for export-linked Inter-Governmental Agreements (IGAs) are simplified, while IGAs remain a viable route for India to procure high-end foreign systems when strategically necessary. In terms of modernisation and jointness, national security priorities and the Raksha Mantri's Operational Directive are linked downward to the 10-year ICDP. These planning mechanisms aim to provide industry with a coherent understanding of long-term capability requirements, projected quantities, and timelines. The repeated emphasis on joint Services Qualitative Requirements (SQRs), joint trials, and integrated planning across Services aligns with the broader movement toward theatre commands.
Challenges Ahead
Despite its strengths, the draft DAP 2026 may face implementation challenges. Its compliance and verification mechanisms, while important, require detailed audits and ownership checks that larger firms may manage more easily than smaller, innovation-driven companies, unless procedural simplifications are introduced. Moreover, the definition of indigenous design is heavily technology- and documentation-centric, potentially excluding integrators who add value through hybrid designs incorporating foreign IP. A more nuanced approach may be necessary to serve broader strategic interests.
The effectiveness of the Make-iDEX-LCCA ecosystem will depend on the Services' willingness to accept limited-scale induction, iterative improvement, and occasional failure-an approach that contrasts with India's traditionally risk-averse institutional culture, unless political and military leadership actively safeguards experimentation. Furthermore, while timelines are precisely articulated, their credibility will depend on addressing long-standing procurement delays and ensuring accountability.
Ultimately, DAP 2026 demands commitment from the Services, industry, and the bureaucracy alike. This shared responsibility is both its greatest strength and its principal vulnerability. If implemented in both letter and spirit, the next decade could witness measurable progress in India's ability to design, produce, and sustain its own defence systems-reducing import dependence and strengthening India's strategic autonomy.
Disclaimer: These are the personal opinions of the author
