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Since its introduction in 2020 in place of the earlier Defence Procurement Procedure (DPP), the Defence Acquisition Procedure (DAP) has enabled a transformation in India’s military industry, in support of the country’s national security and economic objectives. As the Ministry of Defence (MoD) begins considering the next amendment to the DAP, the time is ripe for India’s defence sector to take the next step in its transformation. Accordingly, the U.S.-India Business Council (USIBC) and The Asia Group (TAG) conducted a series of consultations and other engagements with industry stakeholders from India, the United States, the United Kingdom, and the European Union, to generate a set of policy recommendations for the MoD’s consideration.

The following paper summarizes the recommendations that resulted from this process, reflecting areas of consensus across the diverse group of stakeholders. Some of the ideas are beyond the scope of the DAP. However, they, along with the ideas that are within the DAP’s scope, are aimed at further enhancing India’s military preparedness and defence industrial capabilities, through closer industrial collaborations and integration with trusted like-minded partners.