India's Defence Economy
How the Military Buys: Procurement
How India's defence procurement process works, why buying weapons takes years, and the reforms to speed it up.
Buying weapons is complicated, and in India it has often been slow.
The process
- Need identified by the armed forces.
- Approval by the Defence Acquisition Council.
- Requests for proposals to suppliers.
- Trials and evaluation.
- Price negotiations.
- Contract and delivery.
This can take many years.
The Defence Acquisition Procedure
The Defence Acquisition Procedure 2020 sets rules and gives preference to Indian designs and products, with categories like “Buy (Indian-IDDM)” (indigenously designed, developed and manufactured).
Why it’s slow
- Complex trials in different terrains.
- Fear of scandals: past controversies, like the Bofors case in the 1980s, made officials cautious.
- Changing requirements.
- Single-vendor situations that complicate pricing.
Consequences
- Equipment gaps and obsolete weapons in service.
- Emergency purchases at higher prices.
Reforms
- Emergency procurement powers for the forces.
- Shorter timelines and simplified processes.
- Government-to-government deals for faster purchases.
The long wait
The need for a new assault rifle is identified, but trials, retendering and disputes stretch the process for years before a deal is finalised.
Thinking slow procurement is just bureaucracy
Caution after scandals, complex trials and changing needs also slow it.
Key takeaways
- Defence procurement involves many steps and can take years.
- DAP 2020 prefers Indian designs and products.
- Fear of scandals and complex trials slow the process.
- Reforms aim to shorten timelines.
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