India's defence sector has shifted from buyer to builder. Critically examine the role of DAP 2020, iDEX, and Positive Indigenisation Lists in this transition.
Q. India's defence sector has shifted from buyer to builder. Critically examine the role of DAP 2020, iDEX, and Positive Indigenisation Lists in this transition. (15 marks, 250-350 words)
Once the world's largest arms importer, India's indigenous defence production rose from ₹46,429 crore (2014-15) to ₹1.78 lakh crore (2025-26), and exports from ₹686 crore to a record ₹38,424 crore reaching 80+ countries [1][2]. This "buyer to builder" shift rests substantially on three procurement-and-innovation reforms, though the transition remains incomplete.
DAP 2020 — reordering demand - Promulgated in September 2020, it superseded DPP 2016 and renamed "procurement" as acquisition, adding leasing and post-contract management [5]. - Prioritised the Buy (Indian-IDDM) category and raised indigenous content thresholds, giving domestic firms a protected first claim on capital budgets [5]. - Limitation: acquisition timelines remain long, and offset outcomes have historically underdelivered on technology transfer.
Positive Indigenisation Lists — guaranteeing a market - Five PILs for the Services and four for DPSUs embargo imports of notified items after fixed timelines, converting policy intent into assured orders [1]. - The SRIJAN portal (Atmanirbhar Week, 2020) complements this as a one-stop indigenisation marketplace listing items vendors can develop [4]. - Limitation: many listed items are low-to-medium technology; critical aero-engines, sensors and precision components still depend on imports.
iDEX — building the innovation base - Launched 2018 under the Defence Innovation Organisation, it funds start-ups and MSMEs through the Defence India Start-up Challenge, with ADITI targeting deep-tech such as AI, drones and hypersonics [3]. - Has widened the supplier base — exporters rose to 145 in FY 2025-26, with the private sector contributing 45.16% of exports [2]. - Limitation: prototype-to-production conversion and scale-up financing remain weak links.
Together, these instruments shifted the system from import-default to indigenous-default, and the outcome is visible in production, exports and OFB's corporatisation into seven DPSUs [1]. Sustaining it now requires deepening R&D in critical technologies, faster trial-to-contract cycles, and stronger DPSU–private–start-up integration — so that self-reliance under Atmanirbhar Bharat matures from assembly-led substitution into genuine design leadership.
(~330 words)
Sources: 1. PIB Backgrounder, The Defence Decade (17 June 2026) — production and budget growth, PILs for Services/DPSUs, OFB corporatisation 2. PIB/MoD, Defence exports skyrocket to record ₹38,424 crore in FY 2025-26 — export figure, 145 exporters, 45.16% private share 3. PIB, DefConnect 4.0: ADITI 2.0 challenges & DISC 12 launched — iDEX, DISC and ADITI deep-tech focus 4. PIB, Raksha Mantri launches indigenisation portal SRIJAN (Atmanirbhar Week, 2020) — SRIJAN as one-stop indigenisation portal 5. PIB, Raksha Mantri unveils Defence Acquisition Procedure – 2020 — DAP 2020 replacing DPP 2016, leasing, indigenous content emphasis