India's Defence Ministry Considers Incentives for Indigenous Military Material in DAP 2026
The Ministry of Defence is assessing industry proposals for incentives to enhance domestic sourcing of military-grade materials under the forthcoming Defence Acquisition Procedure 2026. This initiative aligns with efforts to reduce reliance on rare earth materials and supports the growth of local manufacturing in the aerospace and defense sectors.

The Ministry of Defence (MoD) is reviewing proposals for monetary incentives aimed at boosting the domestic procurement of military-grade materials in the upcoming Defence Acquisition Procedure 2026. This follows a previous attempt during the formulation of DAP 2020, which failed due to inadequate domestic availability and high costs of such materials, leading to imports.
The MoD is also mapping local defense companies and assessing their capacities. Firms like Mishra Dhatu Nigam Ltd and Kerala Minerals and Metals Ltd are involved in manufacturing. If accepted, the revised DAP will list domestic suppliers for military-grade materials, enhancing local industry growth and potentially increasing defense exports. The global market for aerospace and defense materials is expected to grow from approximately $30 billion to $86.75 billion by 2033, with a CAGR exceeding 7%.




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