Multiple choice

According to Defence Procurement Policy (DPP) 2016, which of the following statements is incorrect?

  1. India’s private sector in military manufacturing

  2. The policy lays stress on micro, small and medium enterprises (MSMEs).

  3. It incorporates newly procurement class called ‘Buy Indian-IDDM'.

  4. The product should be indigenously designed, developed and manufactured with a minimum of 60 percent local content.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Explanation: Defence Procurement Policy 2016 increases the participation of India’s private sector in military manufacturing. It has several recommendations for improving indigenous procurement. The DPP, the governing manual for all defence procurement, was part of a set of military reforms undertaken to address the many deficiencies noticed during the 1999 Kargil war. Since the first one in 2002, the DPP has been revised periodically. The new policy places the highest preference to a newly incorporated procurement class called ‘Buy Indian-IDDM’, with IDDM denoting Indigenous Designed Developed and Manufactured. This category refers to procurement from an Indian vendor, products that are indigenously designed, developed and manufactured with a minimum of 40 percent local content, or products having 60 percent indigenous content if not designed and developed within the country. 

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