Policy highlights and other resources

Key Policy Reforms in the past few years :


  •  Union Budget 2022-23 has allocated 25% of Defence R & D Budget for industry, startups and academia.
  • The updated Defence Acquisition Procedure (DAP) 2020 , has been published. This  is the guiding document for all capital defence procurements.
  • Three Positive Indigenisation Lists, covering 310 items, have been released.
  • The Department of Defence Production has also notified a Positive Indigenisation List of Sub-Systems/ Assemblies/ Sub- Assemblies/ Components to promote self-reliance & minimise exports by DPSUs. The list contains 2,500 imported items that have already been indigenised and 351 imported items which will be indigenised in the next three years.
  • Foreign Direct Investment (FDI) policy has been liberalised allowing 74% FDI under automatic route.
  •  SRIJAN - a portal to facilitate indigenisation by Indian Industry has been launched.
  • Reforms have been made in the offset policy. There's a thrust on attracting investment and Transfer of Technology for Defence manufacturing by assigning higher multipliers.
  • The Government has accorded Acceptance of Necessity (AoN) to 150 proposals worth Rs 2,47,515 crore approximately, under various categories of Capital procurement which promote domestic manufacturing as per DAP 2020. This has been done over 2018- to Dec 2021.
  • Between  2018-January 2022, out of the total 191 Capital acquisition contracts signed, 121 have been signed with Indian vendors for capital procurement of defence equipment for Armed Forces.
  • Two Defence Industrial Corridors have been established, one in Uttar Pradesh and the other in Tamil Nadu.


Press Release