The Defense Acquisition Procedure (DAP) has been a key factor in transforming India’s military industry since its introduction in 2020. As the Ministry of Defense (MoD) considers the next amendment to the DAP, the U.S.-India Business Council (USIBC) and The Asia Group (TAG) have collaborated to provide policy recommendations for the MoD’s consideration.
These recommendations aim to enhance India’s military preparedness and defense industrial capabilities through closer collaborations with trusted partners. The international market plays a crucial role in achieving scale, as evidenced by the significant growth in India’s defense exports. With exports covering over 90 countries, including key markets like the United States, India is well-positioned to further expand its defense exports.
The Security of Supply Agreement (SOSA) signed during Raksha Mantri Rajnath Singh’s visit to the United States in August 2024 is expected to boost India-U.S. defense exports even further. This presents an opportunity for India to explore policies that support industrial capability, resilient supply chains, and global competitiveness.
In addition to the recommendations outlined in the report, it is crucial for India to focus on investing in research and development to foster innovation in the defense sector. Collaborations with academic institutions and research organizations can help drive technological advancements and enhance India’s defense capabilities.
Furthermore, streamlining bureaucratic processes and promoting transparency in defense acquisitions can help attract more foreign investment and technology transfer. This will not only strengthen India’s defense industry but also create opportunities for economic growth and job creation.
Overall, the recommendations put forth by the USIBC and TAG provide a roadmap for India to continue its transformation in the defense sector. By implementing these suggestions and focusing on innovation and transparency, India can further enhance its military preparedness and defense capabilities on a global scale.
