Discuss how the Defence Acquisition Procedure 2020 prioritises indigenous design and development. Assess its impact on India's defence-industrial base, with examples.

The Defence Acquisition Procedure (DAP) 2020 came into force on 1 October 2020. It changed the default in capital procurement from "buy global" to "design and make in India" [1]. It has made domestic industry stronger, but India still depends on imports and its research base remains weak.

How DAP 2020 prioritises indigenous design

• Buy (Indian-IDDM) (Indigenously Designed, Developed and Manufactured) is the top-priority category for capital buys [1].
• Indigenous content (IC) rose to at least 50%, up from 40% under DPP 2016 [1]. A November 2023 amendment applied 50% IC to all categories [2].
• Reserved categories: IDDM, Make-I/II and the Strategic Partnership model are open only to Indian-controlled firms with FDI of 49% or less [1].
• Indigenous software is to be explored for fire-control systems, radars and encryption [1].
• Supporting tools: the Positive Indigenisation Lists put 5,012 items under a phased import ban. DRDO's Technology Development Fund has sanctioned 78 projects worth Rs 333 crore for Indian firms, including MSMEs [2].

Impact on the defence-industrial base

Gains

• Assured orders: MoD signed a Rs 661.50 crore Buy (Indian-IDDM) contract with BrahMos Aerospace for naval fire-control systems and launchers. It requires 68% IC and involves MSMEs [3].
• Steady pipeline: in 2023 the Defence Acquisition Council approved BrahMos launchers for Shivalik-class ships and Next Generation Missile Vessels [4].
• Exports: defence exports reached Rs 21,083 crore in 2023-24 [2]. BrahMos, co-developed with Russia, has found a buyer in the Philippines [5].
• Import substitution: 61% of the items on the indigenisation lists are now made in India [2].

Limits

• Imports remain high: India took 10% of global arms imports in 2013–23, and 28% of modernisation spending still goes abroad [2].
• Slow procurement: the Standing Committee on Defence (2024) said MoD's 19–26 month acquisition cycle is too long [2]. The BrahMos launcher order took three years from approval in 2023 to contract.
• Weak R&D: CAG found that 119 of 178 DRDO projects overran their timelines [2].
• IC is only a cost share: a high IC figure can still hide imported critical parts such as seekers and engines.
• Funding gap: capital outlay is only about 28% of the defence budget [2].

DAP 2020 has turned Aatmanirbhar Bharat into a binding procurement rule, and Indian firms now get both orders and design roles. To build on this, India needs:

• faster approval-to-contract for repeat buys,
• the non-lapsable Defence Modernisation Fund recommended by the 15th Finance Commission [2],
• R&D money directed at critical subsystems.

This would make self-reliance real strategic autonomy and not just a percentage on paper.