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In a decisive push to modernize India’s defence procurement architecture, the Ministry of Defence (MoD) has launched a comprehensive review of the Defence Acquisition Procedure (DAP) 2020, marking 2025 as the official “Year of Reforms.” The initiative—dubbed Defence Reform 2.0—aims to streamline procurement cycles, cut bureaucratic delays, and boost private sector participation, all while reinforcing the country’s long-term goal of self-reliance under the Atmanirbhar Bharat vision.
At the heart of this reform is a high-level committee chaired by the Director General (Acquisition), with former IAS officer Apurva Chandra brought in as Principal Advisor to lend institutional depth and continuity to the process.
“The Defence Acquisition Procedure is being reviewed and renewed to simplify complex and time-consuming processes and to make it more responsive to the requirements of the Services,” the MoD said in an official release on Thursday.
A Stakeholder-Led, Technology-Driven Overhaul
In a clear break from top-down policy reform, the MoD has issued a public call for feedback from a wide range of stakeholders—including defence PSUs, private firms, startups, think tanks, academia, and service personnel. Suggestions are open until July 5, 2025, setting the stage for a participatory and inclusive revamp.
The review will focus on:
- Reducing acquisition timelines and decision-making bottlenecks
- Encouraging indigenous R&D through startups and MSMEs
- Easing trial and post-contract processes
- Integrating next-gen technologies like AI, robotics, and quantum systems
- Clarifying procedural ambiguities in the current DAP text
- Attracting foreign OEMs via joint ventures and technology transfer
Why Reform—and Why Now?
This reset comes against the backdrop of growing frustration within the armed forces and defence industry over protracted procurement timelines—often stretching up to seven years—to induct critical platforms and systems. In today’s fast-evolving threat landscape, such delays are increasingly seen as operationally unacceptable.
The MoD’s 2024 annual review acknowledged the scale of the challenge, stating:
“More than 500 acquisition schemes are being planned over the next 15 years to build potent fighting capabilities. The revised DAP must support these ambitions by enabling faster, smarter, and more strategic acquisitions.”
Building Indian Capability: From Policy to Practice
India’s defence acquisition profile has already begun shifting. Between 2021 and 2025, the MoD signed 158 capital acquisition contracts worth over Rs 70,000 crore, with 97.3% of the contracts placed with Indian vendors. In 2024 alone, 14 of 16 contracts were awarded to domestic players, covering critical domains like small arms, UAVs, communications, and long-range vectors.
To further catalyse innovation, the MoD introduced EP-IV in August 2023, a fast-track procurement channel designed to introduce cutting-edge, niche technologies—particularly in areas such as drone warfare, survivability systems, and tactical mobility.
Towards a Private Sector–Led Defence Ecosystem
A key pillar of the reform is the MoD’s push to empower the private sector and create a competitive domestic defence industrial base. The revised DAP is expected to facilitate:
- Greater participation of startups and innovators
- Strategic collaboration between Indian companies and global OEMs
- Policy incentives for technology absorption and IP creation within India
These changes aim to position India not just as a buyer but as a global hub for defence manufacturing, design, and MRO services.
What’s Next: Stakeholder Suggestions Due by July 5
The MoD’s open consultation window provides stakeholders a critical opportunity to shape the future of Indian defence procurement. Among the key areas for input:
- Policy tweaks to enhance ease of doing business
- Streamlining of acquisition and trial procedures
- Elimination of legal and linguistic ambiguities in DAP 2020
- Mechanisms to incentivize innovation and rapid tech adoption
In a clear articulation of intent, the Ministry emphasized that this is not just a technical revision of a document—but a strategic opportunity to create a future-ready acquisition ecosystem that aligns defence preparedness with industrial growth.
Team BharatShakti
