The Ministry of Defence (MoD), Government of India, has officially released the draft Defence Acquisition Procedure (DAP) 2026. This landmark document is set to replace the existing DAP 2020, marking a significant shift from mere indigenization to true intellectual property ownership and technological “vertical velocity”.
As India enters the “Amrit Kaal,” the DAP 2026 serves as the regulatory backbone to ensure the nation reaches its centenary in 2047 as a “Shaper of the Global Order”.
Key Highlight: Aerospace Systems to Follow
A critical detail for industry stakeholders is the current status of aerospace procurement. The draft clarifies that the Procedure for Acquisition of Aero Space Systems is being developed separately in consultation with stakeholders. This specialized procedure will be integrated into the DAP 2026 at a later date.
Core Philosophy: “Owned by India”
The DAP 2026 departs from the traditional model of manufacturing foreign equipment on Indian soil. Instead, it prioritizes:
- IP Ownership: Shifting from Transfer of Technology (ToT) to Co-Development and Ownership of Intellectual Property.
- Design Powerhouse: Capital acquisitions will now prioritize retaining source codes, critical design data, and upgrade authority within Indian entities.
- JAI Framework: The policy is built on the pillars of Jointness, Atmanirbharta, and Innovation (JAI).
New Acquisition Categories & Procedures
The draft outlines a comprehensive framework for various procurement routes:
- Buy & Buy and Manufacture: Streamlined procedures for direct purchases and collaborative manufacturing.
- Make Categories: Detailed processes for ‘Make-I’ (Government funded), ‘Make-II’ (Industry funded), and ‘Make-III’ (Indigenously manufactured replacements for imports).
- Innovation (iDEX): Focuses on startups and MSMEs to develop low-cost, high-impact technologies.
- Low-Cost Capital Acquisition (LCCA): A new category for faster procurement of cost-effective solutions.
- Other Capital Procurement Procedure (OCPP): Covers the replacement of items like earthmovers, specialized vehicles, and heavy equipment.
Modernizing the Acquisition Cycle
To keep pace with rapid technological advancements in AI, Quantum Computing, and Drones, the DAP 2026 introduces:
- Fast-Track Procurement Protocols: Designed for evolving systems where traditional 2-3 year cycles lead to obsolescence.
- Digital Integration: The entire process will be moved to a digital platform to enhance transparency and accountability.
- Technology Readiness Levels (TRL): A standardized 1-9 scale to assess the maturity of technology from basic research to operational deployment.
Eligibility and Financial Norms for Vendors
To participate, Indian vendors must meet specific criteria:
- Entity Type: Must be a manufacturing entity or system integrator, not a trading company.
- Net Worth: Generally, the net worth must not be less than 5% of the estimated project cost.
- Turnover: Average annual turnover for the last three years should be at least 30% of the project cost (waived for cases under ₹150 crores).
Important Dates for Stakeholders
The Ministry of Defence is actively seeking feedback to refine this draft.
- Deadline for Comments: Suggestions and amendments must be submitted by March 3, 2026.
- Submission Format: Comments should be sent via email to
secy-dap2025@gov.inortmls-mod@nic.inin MS Word or PDF format.
By focusing on “Owned by India” rather than just “Made in India,” the DAP 2026 aims to transform the nation into a global design and manufacturing hub for the next decade.
