India Announces New Weapon Procurement Policy

Discussion in 'Central & South Asia' started by Falcon, Mar 28, 2016.

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  1. Falcon

    Falcon Lieutenant Colonel Staff Member Social Media Team

    Oct 10, 2015
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    The new DPP will give top priority to a new category of procurement known as Indigenous Design, Development and Manufacturing (IDDM). Products bought under this category would require 40 percent indigenous content if the design of the product is also indigenous; otherwise it will require 60 percent indigenous content.

    Under the new policy, top priority to acquiring weapons will be given to Buy (Indian — IDDM) followed by Buy (Indian), Buy and Make (Indian), and Buy and Make (Global); the last priority will be given to Buy (Global) category.

    In another change, foreign companies will now have to transfer technology for providing maintenance infrastructure, even under the category Buy (Global).

    The new DPP has increased the bar for fulfilling mandatory defense offsets by overseas companies. Now, mandatory offsets will be discharged by overseas defense companies only when the contract is over $296 million compared to the existing level of $45 million — a relief to overseas defense companies.
    AMDR and Pathfinder like this.