What was promoted to enhance defence procurement under the approved amendments in the Indian Defence Acquisition Council (DAC) 2020, in February 2024?

The correct answer is Procurement of advanced technology from Startups and MSMEs.

Key Points

• The Defence Acquisition Council (DAC) approved amendments in 2020 to promote the procurement of advanced technology from Startups and MSMEs.
• This initiative aims to foster innovation and indigenization in the defence sector.
• Startups and MSMEs are encouraged to develop cutting-edge technologies that can be integrated into the Indian defence ecosystem.
• The policy aims to create a more self-reliant defence manufacturing sector by leveraging the potential of smaller enterprises.

Additional Information

• Defence Acquisition Council (DAC)
  • The DAC is the highest decision-making body in the Ministry of Defence for capital acquisition proposals.
  • It was constituted to ensure expeditious procurement of the approved requirements of the Armed Forces.
  • The DAC is headed by the Defence Minister of India.
• MSMEs in Defence
  • Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in the defence manufacturing sector.
  • They contribute significantly to the supply chain by providing key components and subsystems.
  • Government policies are increasingly focusing on the inclusion of MSMEs to boost self-reliance in defence production.
• Startups in Defence
  • Startups are being encouraged to participate in defence projects through various innovation challenges and funding programs.
  • Initiatives like the Innovations for Defence Excellence (iDEX) aim to support startups in developing new defence technologies.
  • These efforts are part of a broader push to modernize India's defence capabilities and reduce dependency on foreign technology.