Defence Budget Allocation & Defence Procurement Procedure : News & Discussions

[Ashwin]

But that is indeed the irony - in a period of import austerity within India, even KSA managed a reduction greater than India. And the trend for the next half a decade is frankly disheartening now that any pretense of import restrictions are off. Doesn't the RM see charts like this as a source of shame and a reason for a more aggresive tilt and commensurate reward for IDDM - higher guaranteed orders, etc.? Why is being in the top 3 just accepted?

Substantial import reduction is an aspiration, not an immediate goal. We have real security threat and there is no sugar daddy to protect us. With gradual improvement in the procurement process, R&D, and capability of the industry, the import will reduce. Which is happening.

This government is making great efforts to become more self-sufficient. They have made it a priority. You have to appreciate them for that. Constant complaining overlooks that fact. Industry has not yet matured enough to be have any aggressive tilt.

 

[randomradio]

Some responses from AI that I haven't verified:

> What is incentive for “Buy Indian‑IDDM” ?
DAP‑2026, Para 26.7.2:
Vendors “shall be eligible for a credit score for L1 determination… cumulative credit score shall not exceed 15%.”

> What is disincentive for “Buy Global” ? Escape clauses?
“Buy Global” is prohibited for items on the Positive Indigenisation List (PIL).
Para 17.4 states:
“No equipment… figuring on the Positive Indigenisation Lists… shall be procured under this category.”

Escape clause:

Escape Clause	Why it Enables Buy Global	Source
No Indian vendor meets requirements	Makes Indian categories ineligible	Para 21.2.4
Requirement not strategic/long‑term	Allows Buy Global directly	Para 22.4.1
Urgent operational need	FTP overrides preference hierarchy	Para 22.4.1.2
Only one foreign vendor (strategic)	G2G/IGA route allowed	Para 22.4.2
Not on PIL	Buy Global permitted	Para 22.4.4
Parallel AoN for Make/D&D	Procedural compliance for Buy Global	Para 17.4
Indian TRL too low	IDDM/Make cannot be used	Para 22.1–22.3
Indian delivery timelines insufficient	Foreign OEMs only viable option	Para 22.1.3 / 22.2.3
Key technologies inaccessible	Forces foreign procurement	Para 22.3

---

IOW, permission to continue with brochuritis. Lage Raho import lobby.

Why? Most of it is about emergency procurement or lack of equivalent indigenous tech. Even other weapons exporting countries do this.

Six Flaws That Could Sink India's New Defence Procurement Code Before It Launches​

Six Flaws That Could Sink India's New Defence Procurement Code Before It Launches

India's draft Defence Acquisition Procedure 2026 is, on paper, the most ambitious overhaul of military procurement the country has attempted. The phil

swarajyamag.com

Good take on DAP Draft

Clearly written by someone who doesn't know the process. They look at the roadmap, not what's just at the start line.

Right now, it's only modernization, replacing missing/old hardware with new. Defense surge (expansion) is for 2035+.

 

[randomradio]

In spite of all the roadblocks parts of the MoD put in front of the import lobby, here is the stark reality of India's procurement process:

View attachment 50260

And where will India be in the next 5 years after the UA war has wound down, but the monthly payments on those jets, subs and even polish drones are still due?

You're reading it all wrong. Instead of rising to 15%, it's at 8%. Our budget increased but imports growth is negative.

The next 5 years will actually see us go down the list 'cause of modernizations elsewhere, especially the Middle East.

The day Modi said it's not the era of war was the start of the era of war.

 

[redpanda]

In spite of all the roadblocks parts of the MoD put in front of the import lobby, here is the stark reality of India's procurement process:

View attachment 50260

And where will India be in the next 5 years after the UA war has wound down, but the monthly payments on those jets, subs and even polish drones are still due?

Just gonna put it here for more clarity. As Ashwin said this chart shows our imports are declining..

Somebody on the other forum was saying that SIPRI counts locally assembled items like KONKURS, BMP, MILAN, DO-228, SRG 76mm, AK-630 etc. by country of origin, which makes the number look big. and it doesn't distinguish between new capex items(S-400) and sustainment of old equipment inducted 20-30 years ago(BMP).

If a country imports the rights and components to build a weapon domestically (licensed production), SIPRI counts these weapons as imports. They are assigned the exact same TIV as if they had been imported fully assembled from the supplier country.

TIV is a proprietary measurement unit used by SIPRI.

 

[_Anonymous_]

With imports of Rafale , TKMS submarines , more S-400 systems , Pantsir regiments , possible Su-57 , long pending demands for P-8i , more Apaches , MH-60R , Predator drones etc the quantum we're spending will definitely go up even if as a percentage of the overall defence budget & procurement the number falls .

However uncomfortable the facts are , they're facts . Now whether we needed to go in for some or all the above including those not listed here is another argument . IMO a few on that list aren't needed for it won't come when we want it the most after which it really won't make much of a difference whether we have it or not.

 

[STEPHEN COHEN]

https://twitter.com/x/status/2031269747850166627

 

[jmaxwell_]

Ive been very impressed by the Def Secretary. Please watch this interview in case you've missed it:

 

[Ashwin]

 

[jmaxwell_]

A brilliant conversation on the various pitfalls in the draft DAP.
Must watch (@2x speed) !

On Loopholes:

• Equating Acquired Intellectual Property (IP) with Indigenous Design: The draft allows IP purchased from foreign entities to be equated with "Indian Design" if the rights are transferred. This is viewed as a major loophole because acquired IP represents foreign design and development, contributing very little to actual indigenous capability. It is described as a potential "back door" for fraudulent players or foreign OEMs to bypass the spirit of Indigenous Design, Development, and Manufacture (IDDM).
• Low Entry-Level Indigenous Content (IC) Thresholds: The DAP allows a player to enter the design or prototype stage with only 30% indigenous content. This equates these low-investment players with genuine Indian companies that have spent years and significant capital on R&D to achieve over 70% IC.
• Inadequate Penalties for Non-Compliance: Current penalties for failing to meet claimed IC levels—such as a 5% contract value penalty or forfeiture of deposits—are described as "very mild" and a "trap". Experts argue these are not a deterrent for large foreign OEMs and suggest "existential" penalties, including blacklisting the company and its group entities and forfeiting 75% of the contract value.
• Exclusion of IDDM from Key Procurement Routes:The core IDDM provisions do not currently encompass several critical procurement procedures, including:
  • Fast Contract Procedure (FTP) for urgent requirements.
  • Other than Capital Procurement (OCP), which covers modifications, upgrades, and maintenance.
  • Low Cost Capital Acquisition (LCCA) for innovative, low-cost products.
  • Strategic Partnerships involving major platforms like aircraft, submarines, and main battle tanks.
• Bypassing IDDM for "Urgent" Requirements: Under the FTP, the requirement to search for an existing IDDM player is currently "dispensed with". This allows agencies to cite urgency to buy foreign equipment even when a capable Indian player might be available.

On Training:

• Separation of Equipment and Training Systems: In the FTP, while critical operational equipment is fast-tracked, the necessary simulators and training aggregates must follow regular, slower procurement procedures. This leads to a mismatch where equipment arrives before the forces are trained to use it.
• Neglect of Training and Simulation: Despite a 2021 government policy emphasizing simulator-based training, the DAP 2026 draft is described as "peripheral" regarding training systems. It lacks a mandatory statement that all simulators must be purchased from Indian vendors, despite the domestic industry's capability to produce them.
• Absence of Training Capability Plans: While there is an Integrated Capability Development Plan (ICDP), there is no corresponding plan for training and simulation capability, which is essential for operational readiness.

 

[Ashwin]

3 things Indian military must keep out of its reforms agenda

Over the next few years, there will be several unknown unknowns at all levels in the Indian Armed Forces, which could cause a high degree of churn.

theprint.in

 

[Ashwin]

Army bats for Rs 250 crore fund to end startup 'trial trap', proposal with MoD

NEW DELHI: With defence startups often unable to move beyond the trial stage, the Indian Army has proposed a Rs 250 crore annual Field Exploitation and Capabili

www.newindianexpress.com

 

[Ashwin]