The Ministry of Defence (MoD) in India is undertaking a significant overhaul of the Defence Acquisition Procedure (DAP) 2020 to expedite defence procurement and address long-standing inefficiencies and delays. A high-level committee, led by the Additional Secretary and Director General (Acquisition), has been formed to review and restructure the procurement process.

This committee aims to complete its mandate within six months, aligning with the MoD's decision to designate 2025 as the "Year of Reforms." The reforms aim to reduce the extensive two-to-three-year time frame required to formulate a Request for Proposal (RFP) and shorten prolonged field evaluation trials and cost negotiations.

Currently, India's defence procurement cycle spans 5-7 years, with field-evaluation trials alone consuming up to three years. The existing multi-stage process involves several bureaucratic hurdles, including vendor selection, bid evaluation, and financial negotiations.

These delays have led to critical capability gaps, particularly for the Indian Air Force (IAF), whose active squadron strength has dropped significantly due to ageing aircraft and delayed inductions.

The proposed reforms aim to accelerate each stage of the procurement process to ensure faster acquisitions. The committee will engage with stakeholders across the defence ecosystem, including domestic private firms, global Original Equipment Manufacturers (OEMs), public-sector units, startups, and think tanks.

By addressing industry concerns, the MoD aims to create a more responsive and transparent procurement framework that balances national security imperatives with the realities of the defence market.

In the Union Budget for FY 2025-26, the MoD has been allocated ₹6,81,000 crore, with 1,80,000 crore earmarked for capital outlay on defence services, of which 1,49,000 crore is dedicated to capital acquisition.

However, the modest increase in capital outlay highlights the need for optimal resource utilisation through procurement reforms. Industry analysts emphasise that streamlining the acquisition process is crucial for modernising the armed forces effectively.

Additionally, the MoD is considering further reforms to promote indigenous manufacturing under the ‘Atmanirbhar Bharat’ initiative. This includes potentially banning the procurement of foreign license-manufactured weapons systems unless local Indian firms hold the Intellectual Property (IP) rights of these systems. This move aims to reduce reliance on foreign defence equipment and bolster indigenous manufacturing.

Agencies