UKIBC recommendations to Indian MOD on draft DPP 2020

By UK India Business Council (UKIBC)

On 20th March 2020, the Indian Ministry of Defence released its draft Defence Procurement Procedure (DPP) 2020 for industry comment and recommendations. Following extensive surveying and information gathering from British business, via its Aerospace & Defence Industry Group, UKIBC submitted consolidated feedback on the draft to the Government of India on 8th May 2020.

The draft DPP is intended to further promote indigenous manufacturing in the Indian defence sector, and to streamline what can today be a long procurement cycle. The procedure contains several innovations to support Make In India, including provisions of leasing of equipment from suppliers to reduce capital expenditure – a new category called ‘Buy (Global – Manufacture in India)’; and new guidance on advanced technologies such as artificial intelligence and advanced materials and the role of start-ups.

The draft DPP also further recognises the importance of a supplier’s intellectual property rights, which has been a persistent challenge for foreign providers and is to be welcomed.

Industry feedback on the draft was discussed and finalised at virtual gathering of UKIBC’s Aerospace & Defence Industry Group on 29th April 2020 – attended by over 30 participants representing 20 British companies and stakeholders from the UK Government. Members expressed interest and positivity about the draft’s Buy (Indian Designed, Developed and Manufactured) category, which presents opportunities for UK firms to collaborate with Indian suppliers in India.

In total, UKIBC submitted 34 detailed recommendations to the MOD, two-thirds of which related to the treatment of offsets, which are a critical part of procurement for foreign suppliers.

UKIBC and British industry believe the new draft policy, with refinements, has the potential to further develop the procurement process and operating environment in India. We are strongly committed to the promotion and success of ‘Make in India’.

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