India’s Draft DAP-2026 Pushes For ‘Owned By India’ Technologies, Fast-Tracked Defence Contracts
India signalled a decisive shift in defence procurement with the release of the draft DAP 2026, prioritising indigenous ownership, faster acquisition timelines and a stronger push toward self-reliance and defence exports. Image courtesy: AI modified image via DALL-E
India’s Defence Minister on February 10, 2026, released the draft Defence Acquisition Procedure (DAP) 2026, marking a major shift in India’s defence procurement policy from “Made in India” to “Owned by India.”
The draft, to replace DAP 2020 after approval, was placed in the public domain for comments from stakeholders and citizens until March 3, 2026.
The DAP 2026 plugs India’s defence modernisation in Jointness, Atmanirbharta (self-reliance) and Innovation (JAI), according to a Defence Ministry statement.
It introduces structural reforms to accelerate acquisition timelines, strengthen indigenous intellectual property ownership, improve lifecycle cost management and boost defence exports to Rs 50,000 crore by 2030.
The document describes the coming decade as a decisive phase in India’s defence trajectory, linking capital acquisition directly with industrial growth and strategic autonomy.
One of the most consequential changes in the draft procedure is its doctrinal departure from traditional Transfer of Technology (ToT)-driven indigenisation.
Instead of assembling foreign-origin systems in India, the new framework prioritises co-development, intellectual property ownership and retention of source codes and critical design data within Indian entities.
The emphasis shifts toward ensuring that Indian companies have upgrade authority and long-term control over systems, positioning India as a global design and development hub rather than merely a manufacturing destination.
The draft also integrates defence exports into procurement strategy, setting a target of achieving Rs 50,000 crore in annual defence exports by 2030, with ambitions to scale even higher by 2036.
Exportability will become a desirable Qualitative Requirement in the development of new platforms, and the armed forces will provide certification support to help Indian systems gain international acceptance with limited additional trials.
The procedure further simplifies processes for Inter-Governmental Agreements, strengthening India’s position as a Net Security Provider in the Indian Ocean Region and among countries of the Global South.
Recognising that rapid technological change poses a greater challenge than budget constraints, DAP 2026 introduces procurement protocols tailored for fast-evolving domains such as Artificial Intelligence, Quantum Computing, advanced drones and Directed Energy Weapons.
The draft underscores that software has become as critical as hardware in multi-domain warfare and places significant emphasis on upgradeability and spiral development cycles to prevent obsolescence.
It institutionalises Civil-Military Fusion by enabling the armed forces to procure commercial-off-the-shelf technologies, including drone swarms, space-based systems and cyber tools, with minimal customisation.
The categorisation framework reinforces a clear order of preference, with Buy (Indian–IDDM) as the top priority when eligible Indian vendors meet indigenous design and content requirements.
Even single-vendor cases are permitted under this category if certified Technology Readiness Levels are met. If IDDM conditions cannot be satisfied, the hierarchy moves to Buy (Indian) and Manufacture in India, followed by Buy (Global) and Manufacture in India, and finally Buy (Global).
Equipment listed in the Positive Indigenisation Lists cannot be procured under Buy (Global), tightening restrictions on imports and reinforcing domestic production.
DAP 2026 strengthens the Development scheme by expanding the Make categories. Make-I projects will continue to receive government funding for prototype development, while Make-II projects remain industry-funded.
Make-III focuses on indigenous manufacturing and maintenance capabilities. Innovation pathways such as iDEX and the Technology Development Fund are elevated to mainstream acquisition routes, integrating MSMEs and start-ups into capital procurement.
Design and Development projects undertaken by DRDO, DPSUs and central research agencies are also embedded within this framework to address high-risk or critical technology requirements.
