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Strategic Partnership (SP) Model under DAP 2020

The Defence Acquisition Procedure (DAP) 2020 introduced the Strategic Partnership model to create a select number of Indian system integrators in critical defence segments — aircraft, submarines, armoured vehicles, and helicopters. Under this model, Indian private companies partner with foreign OEMs or government design agencies, with ownership mandatorily above 50% Indian and FDI capped at 49%. The model mandates technology transfer, indigenisation roadmaps, and long-term production commitments.

Key details
  • The SP model was first introduced in the Defence Procurement Procedure 2016 and refined in DAP 2020.
  • It is designed to build domestic strategic manufacturing capabilities and reduce import dependency.
  • Selected SP companies must meet offset obligations and achieve defined levels of indigenous content over the programme lifecycle.
In the news

Tracked since May 27, 2026 · last seen May 27, 2026 · updates as the daily brief publishes

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