Buy (Global) Category

Buy (Global) is the lowest-priority acquisition category under DAP 2020, applicable only when equipment cannot be sourced from Indian vendors or manufactured in India within acceptable timelines, permitting outright import from foreign original equipment manufacturers.

What is the Buy (Global) Category?

Buy (Global) allows the Indian Armed Forces to procure equipment directly from foreign OEMs when domestic industry is unable to supply the required capability. It sits at the bottom of the DAP 2020 priority order, below Buy (Indian, IDDM), Buy (Indian), Buy and Make (Indian), and Buy and Make, and requires formal justification for why higher-priority indigenous categories are not feasible.

Key features of Buy (Global) contracts:

• Foreign companies may bid directly as prime vendors
• No mandatory indigenous content percentage is specified, though some programmes include local content development clauses
• Defence Offset Policy obligations are triggered for contracts above INR 2,000 crore, requiring the foreign vendor to invest a percentage of the contract value back into Indian defence industry
• The Ministry of Finance generally scrutinises Buy (Global) cases more closely given the foreign exchange outflow
• Technology transfer to India is not mandatory (unlike Buy and Make), though it may be negotiated

Buy (Global) RFPs are published on the DefProc portal and typically attract responses from large global defence contractors. Indian companies can participate as sub-vendors or local support partners, which is how many Indian firms gain their first exposure to advanced foreign defence technology.

Why Buy (Global) matters for Indian government suppliers

While Indian companies cannot be prime bidders under Buy (Global), the offset obligations triggered for large contracts create significant sub-contracting opportunities. Foreign OEMs winning Buy (Global) contracts above INR 2,000 crore must discharge offsets worth 30% of contract value through Indian industry, creating a mandated INR 600 crore-plus business pipeline for each such contract. Indian defence manufacturers who build relationships with likely foreign OEM winners position themselves to capture these offset obligations as sub-vendors or technology absorbers.

Example

The Indian Air Force procures advanced multi-role fighter aircraft under Buy (Global) after no Indian manufacturer could meet the SQR for a fifth-generation platform. The contract is valued at INR 60,000 crore, triggering offset obligations of INR 18,000 crore (30%). The winning foreign OEM partners with multiple Indian companies across aerospace composites, avionics sub-assemblies, and maintenance services to discharge these offsets over the 10-year contract period.

Frequently Asked Questions

What justification is needed to use Buy (Global) instead of a higher category?

The Services Headquarters must formally demonstrate in the Statement of Case that Indian industry cannot supply the required equipment within the timeframe and quality levels needed, and that Buy (Indian), Buy and Make (Indian), and Buy and Make options were considered and found infeasible. The Defence Acquisition Council (DAC) reviews this justification before granting AoN under Buy (Global).

Are offset obligations mandatory for all Buy (Global) contracts?

Offset obligations under the Defence Offset Policy apply to contracts above INR 2,000 crore. For smaller contracts, offsets may be negotiated on a case-by-case basis but are not mandatory.

Can Indian companies form joint ventures with foreign OEMs to bid under Buy (Global)?

Yes. A joint venture between a foreign OEM and an Indian company may bid under Buy (Global), with the foreign OEM typically holding majority equity and technical responsibility. Such JVs are also common for subsequent offset discharge activities.

Is Buy (Global) being reduced over time?

Yes. India's Positive Indigenisation List progressively restricts new imports of items that Indian industry can supply. Each successive list adds more items, effectively eliminating Buy (Global) as an option for those categories and pushing procurement into the Buy (Indian) or IDDM buckets. The long-term policy direction is to minimise the share of Buy (Global) in the defence capital budget.