Defence Budget Allocation & Defence Procurement Procedure : News & Discussions
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So, “Procedure for Acquisition of Aero Space Systems” is explicitly stated as being worked separately and to be inserted later. Just FYI.
PDF attached
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.
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Defence Buying 2.0: Sturdier L1 formula & more to boost ‘Made in India’
India is changing its defence buying rules. The government will now favor Indian firms that invest in research and own technology. This shift from 'Made in India' to 'Owned by India' aims to boost local startups. Procurement timelines will also be cut by up to 50 percent. These new rules are...
If IDDM , Buy Indian + MII & Buy Global + MII all have 60% IC it's problematic . One can understand the first category has 60% IC in order to encourage more indigenization & more start ups but the other 2 categories involves less hassle as you've merely to effect ToT in as far as assembly goes to qualify.
Which in turn means it's less cost intensive meaning less CAPEX as opposed to setting up the entire paraphernalia for IDDM .
The latter 2 categories should've seen IC beginning at 70% at least & eventually going up to 80-90% . Clear differentials between the first & other two categories vis a vis IC encourages players to opt for the more CAPEX intensive but eventually rewarding indigenization as opposed to the rentier class seeking JVs with F OEMs for enhanced screwdrivergiri.
Which in turn means it's less cost intensive meaning less CAPEX as opposed to setting up the entire paraphernalia for IDDM .
The latter 2 categories should've seen IC beginning at 70% at least & eventually going up to 80-90% . Clear differentials between the first & other two categories vis a vis IC encourages players to opt for the more CAPEX intensive but eventually rewarding indigenization as opposed to the rentier class seeking JVs with F OEMs for enhanced screwdrivergiri.
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
Decoding India's defence budget & how various govts struggled to spend it—from UPA to NDA
Every February, headlines focus on defence budget allocation. But real question is—how much money was actually spent & why did promise-delivery gap widen in some years, narrow in others?
theprint.in
How various govts struggled to spend India's defence budget !!
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:
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?
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?
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?
We were always in the top 3, nothing new. This chart actually shows that imports are decreasing.
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?
We have hostile emerging superpower at borders, that's rapidly rising in military strength.
We have both long and short term defensive needs, and its hard to full fill short-medium terms needs with domestic alternatives that are not yet developed especially for big ticket items.
Though we are also importing systems like pantisir for which we have expertise present at the movement, so
.Who doesnt have hostile neighbors? And the domestic alternative will never be there if it isn't encouraged, funded, purchased and iterated upon. I wonder if India made a national engine program and ploughed the same $8B into _hiring_ the best abroad and within India that the results wont be better - given we know where France stands when it comes to honoring commitments they made on the Scorpene deal.We have hostile emerging superpower at borders, that's rapidly rising in military strength.
We have both long and short term defensive needs, and its hard to full fill short-medium terms needs with domestic alternatives that are not yet developed especially for big ticket items.
Though we are also importing systems like pantisir for which we have expertise present at the movement, so
And from polish drones to Pantsir, and laughable orders given to Kalyani, I dont blame the Ambanis and Adanis to sticking with
which seems to be the only thing the MoD/Armed Forces want out of Indian MIC.It seems as though the lessons from op sindoor are "we're not there yet"
Never said to not create domestic alternatives, i meant to fulfill immediate need while working on domestic alternatives that will takes years to decade+ to mature
Agree with you on almost everything, but your comparison with KSA is flawed.
Reduction in its imports didnot result in KSA being a weapons developer. They didn't direct those funds towards building native MIC. No. They just haven't imported becoz they didn't feel the need to, given their zero active conflict for past few years. There military hasn't upgraded, rather it's been left stagnated.
Then there are orders to be delivered. Orders used, just to humor Trump, general aversion to military> Royal family. And they have pak soldiers for contingency anyways. They also have US as the "security provider". All of this and still couple of drones from Iran laid bare the condition of their "prowess".
Now, coming to India.. I hope you realise the sheer difference in everything must for a military.