IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 20 Apr 2013 | Removal date: open ended
Still in force

Public procurement localisation

On 20 April 2013, Indian Ministry of Defense approved the following amendments in the Defense Procurement Procedure (DPP)-2011, primarily focusing on indigenization of defense products.
 
The relevant amendments are as follows -
 
i) Preference categories are made a part of capital acquisition under the DPP. The order of preference is: (1) 'Buy (Indian)'; (2) 'Buy & Make (Indian)'; (3) 'Make'; (4) 'Buy & Make with ToT'; and (5) 'Buy (Global)'. It is necessary to give justification for not selecting higher categories
ii) The 15 year (2012-2027) plan of defense acquisition has been made available publicly to guide private technology and R&D investments.
iii) The procedural requirements under the "Buy & Make (Indian)", where Indian firms form joint ventures with global firms to build required items in India, have been simplified.
iv) Indigenous content requirements under the "Buy (Indian)" category have been made more stringent for the core components.
v) Definition of "indigenous" within the policy has been made unambiguous and the requirements more stringent.
vi) A penalty has been stipulated for not meeting indeginzation requirements, although there is an opportunity to make up for deficiencies in future stages.
vii) Earlier, public enterprises had automatic nomination for maintenance contracts of imported systems. This policy has been abolished, and all public and private bidders can now compete for such maintenance, repairs and overhauls work.
 
 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

447 Weapons & ammunition & parts
9303 Other firearms and similar devices which operate by the firing of an explosive charge (for example, sporting shotguns and rifles, muzzleloading firearms, Very pistols and other devices designed to project only signal flares, pistols and revolvers for fir
930390 Other
9305 Parts and accessories of articles of headings 93.01 to 93.04.
930599 Other

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