DAP) 2020 has increased the
indigenous content requirement in all categories of defence
procurement.
10 The DAP 2020 has
also proposed other measures to increase indigenisation such as
increase in indigenous availability of high-end military materials,
the use of indigenous software in equipment/systems and a boost to
innovation by start-ups and Micro, Small and Medium Enterprises
(
MSMEs). For a discussion on the changes
introduced in the DAP 2020, please see our previous article,
here.
Challenges to achieving self-reliance
While the industry stakeholders welcomed these new measures, the
domestic defence industry faces several challenges which hinders
India s pursuit of self-reliance in defence manufacturing.
These challenges are: