The Ministry of Defence (MoD) has released a draft Defence Acquisition Procedure (DAP) 2026 for stakeholder feedback, inviting comments by March 3. The draft marks a significant step in restructuring how capital procurement for defence equipment and platforms will be managed in the 2027 financial year, with a view to aligning purchases with the broader national objective of Atmanirbhar Bharat.

The published document indicates that capital procurement for FY27, amounting to roughly ₹2.19 lakh crore, is planned to commence from April 1, 2026, under the terms of DAP 2026, and is anticipated to be finalised by that time. This timing suggests the MoD is aiming for a relatively tight timeline to operationalise the new procedure ahead of the new financial year, ensuring procurement processes are synchronised with the budget cycle.

A central preoccupation of DAP 2026 is the institutionalised prioritisation of the Buy (Indian-IDDM) category, i.e., Indigenously Designed, Developed and Manufactured equipment. This emphasis seeks to bolster domestic manufacturing capabilities and reduce import dependence, in line with the government’s broader strategic objective to foster an indigenous defence industrial base.

The draft posits that while the framework will promote indigenisation, it will also enable the import of equipment that is not available domestically or is deemed critical to national security. In effect, the procedure recognises a balanced approach: prioritise domestic sourcing where feasible while preserving access to essential foreign procurements when required.

The draft DAP highlights several intended outcomes, including enhanced jointness across services, stronger focus on Atmanirbharta (self-reliance) and greater integration within the defence ecosystem. It emphasises faster modernisation, accelerated acquisition timelines, and scalable production to support the growth of domestic defence capabilities.

By aiming to streamline procedures and ramp up effective production, the MoD expects to stimulate both the capacity and reliability of domestic supply chains, with the broader aim of enabling export prospects for Indian defence products.

A notable feature of the proposed DAP is its intent to categorise procurement strategies according to technological availability and manufacturing readiness. The document suggests exclusive procedures for quicker acquisition of equipment with shorter technological cycles, alongside mechanisms for spiral design and procurements of major platforms.

It demonstrates an intent to leverage modern technology prior to bulk procurement, ensuring earlier deployments of cutting-edge systems where appropriate. The focus on rapid cycles and iterative development indicates a shift towards more incremental and adaptive procurement methods, rather than relying solely on long, multi-year development programmes.

The DAP 2026 also foregrounds pragmatic criteria for Indigenous Content (IC) and Indigenous Design (ID), aiming to prioritise local design and manufacturing while maintaining quality and performance standards. The MoD asserts that it will promote the utilisation of indigenous military material and strengthen the evaluation of domestic content as a core component of procurement decisions.

Alongside this, the draft sets out proposals to ease financial and experience criteria to facilitate broader participation, including by domestic and perhaps non-traditional defence suppliers. By relaxing entry barriers in some respects, the MoD intends to widen the pool of potential bidders and encourage more diverse industrial participation.

Delegation of decision-making is highlighted as a mechanism to shorten procurement timelines. The draft DAP suggests streamlined authorities and faster decision loops, potentially reducing the number of layers and delays typically encountered in large acquisitions.

This aligns with the broader aim of improving the speed and efficiency of capital procurement processes. The document also proposes revamping trials and quality assurance processes, signalling an intent to modernise completeness checks and ensure robust evaluation while not unduly delaying acquisitions.

Digitisation and automation are emphasised as transformative elements of the new framework. The MoD plans aggressive infusion of digital technologies into acquisition procedures and processes, including data-driven decision-making, digital governance, and enhanced transparency. Such measures are intended to support better project tracking, risk management, and oversight, while enabling more agile responses to evolving defence needs.

A further ambition of the DAP 2026 is the protection and retention of Intellectual Property (IPR) arising from Indigenous Design efforts. The MoD indicates it will prioritise Atmanirbharta with a strong emphasis on design freedom and IPR retention for Indian entities.

Incentives for innovation are anticipated as part of the framework, potentially including preferential treatment for domestically developed solutions or strategic collaborations with Indian industry. This approach is designed to incentivise sustained investment in research and development and to deepen the domestic ecosystem of defence technologies.

The document clarifies that the DAP 2026 exists alongside the Defence Procurement Manual (DPM) 2025, which governs maintenance and sustenance under the Revenue head of expenditure, while the DAP governs capital procurement under the Capital head of expenditure. This distinction underscores the MoD’s attempt to harmonise procurement practices across different expenditure streams and ensure clear delineation of responsibilities, while aligning with the broader financial architecture of defence spending.

The MoD frames the draft DAP 2026 as a vehicle to weave together national security imperatives with technological growth, contributing to the larger objective of Viksit Bharat-2047. The emphasis on integrating security considerations with growth and innovation signals a strategic shift towards a defence ecosystem that not only equips the armed forces but also contributes to the wider industrial and technological maturation of the country.

Stakeholders, including industry players, defence organisations, and the public, are invited to submit comments and suggestions by the stated deadline, with the expectation that feedback will inform finalisation of the policy before the new procurement year.

The DAP 2026 represents a forward-looking framework designed to accelerate and rationalise capital defence procurement, prioritise indigenous design and manufacturing, and deepen domestic capabilities while maintaining access to critical imported equipment when necessary.

The approach seeks to balance speed, self-reliance, and strategic flexibility within a streamlined, digitally enabled, and innovation-oriented procurement environment. If adopted, the DAP 2026 could reshape supplier engagement, trial and quality regimes, and the overall speed at which India’s defence services modernise their platforms, potentially boosting exports and reinforcing national technological advancement as envisioned by the government’s development agendas.

PIB Press Release