Impacts of DPP Indian defence development:

• Being the multi-billion dollar and most lucrative defence market in the world, India provides several opportunities for Indian and foreign corporate entities for defence manufacturing. Due to the Make in India campaign, the defence sector has moved from the periphery to the core of Indian manufacturing. 
• The revised Defence Procurement Procedure (DPP) 2016, provides more flexibility to the end-users and the industry to work together, especially on development projects. A new procurement category — Indigenously Designed, Developed and Manufactured (IDDM) — has been introduced and accorded top priority. It essentially means the government is leaving no stone unturned to give a boost to Make in India. 
• The defence ministry would fund up to 90 per cent of the Make project’s prototype development cost. Adding one more safeguard for the industry, the ministry will reimburse the remaining 10 per cent prototype development cost, if the order is not placed within a stipulated timeframe after the successful test of prototypes.
• The DPP also addresses issues like incentives to move the Indian defence industry up the value chain. Various provisions remove ambiguities, ensure transparency, offer a level playing field and clearly lay down procedures. 
• DPP 2016 has also opened up several co-development and coproduction avenues for Indian as well as foreign companies. The ministry seems to have successfully bridged the gap between intent and implementation. 
• End-users will literally have to exhaust all possible options of domestic manufacturing before suggesting “Buy Global” procurements.

Read more about Defence Procurement Procedure (DPP)