India is intensifying its efforts to reduce reliance on foreign defense imports through the Defense Acquisition Procedure (DAP) 2020, which emphasizes indigenisation and aims to establish the country as a global defense manufacturing hub. This framework introduces a critical legal classification of procurement categories, linking vendor eligibility to their Indian control, thereby impacting joint ventures and foreign investments in the defense sector. The initiative is poised to create significant opportunities for domestic firms, start-ups, and MSMEs while also presenting legal complexities that stakeholders must navigate. This strategic shift reflects India’s commitment to enhancing self-reliance in defense manufacturing, ultimately strengthening national security and fostering economic growth.