Defence Procurement Policy

Defence Procurement Procedure (DPP) 2016 focuses on institutionalizing, streamlining and simplifying defence procurement procedure to give a boost to “Make in India” initiative of the Government of India, by promoting indigenous design, development and manufacturing of defence equipment, platforms, systems and sub-systems.

• Several initiatives have been taken to promote greater participation of industry which includes revision in Defence Procurement Procedures to introduce ‘Make-I’ and ‘Make-II’ processes, introduction of Strategic Partnership Model, increase in FDI through automatic route to 49%, restricting licensing requirements for critical items, de-notifying several items previously produced only by ordnance factories for production by industry etc.

Objectives: Create an environment that encourages a dynamic, robust and competitive defence industry as part of the ‘Make in India’ initiative.

• To facilitate faster absorption of technology and create a tiered defence industrial ecosystem in the country.
• To reduce current dependence on imports and to achieve self-reliance in development and manufacture of weapon systems (like Autonomous Weapon Systems, electronic warfare systems, missile systems etc.) by 2025.
• To achieve defence turnover and exports of nearly Rs 1,70,000 Crores ($26 billion) and Rs 35,000 Crores ($5 Billion) respectively in defence goods and services by 2025.
• To turn India into a global leader in Robotics, Cyberspace and AI technologies.