Make Category (Make-I, Make-II)

The Make Category under DAP 2020 is a development-first acquisition pathway that provides Indian private sector and public sector companies with the opportunity, and in Make-I cases the funding, to design and develop complex defence systems before a production contract is issued, building indigenous capability that does not yet exist.

What is the Make Category?

The Make Category is distinct from the Buy categories in that it begins with a development phase rather than direct procurement. Two sub-categories exist:

Make-I: The government funds 70% of the development cost, with the Indian developer contributing 30%. On successful development, the developer receives a production order without further competition, making this highly attractive for developers willing to take on the 30% risk. Make-I is intended for high-technology, complex systems.

Make-II: The developer funds the entire development cost from its own resources. If the prototype passes trials and is accepted, the developer receives a production order. No government funding is provided during development. Make-II is simpler to initiate, proposals can be submitted by industry proactively (unsolicited), without waiting for a government RFP.

Both Make-I and Make-II require the developer to be an Indian entity. On successful development:

• Two vendors are typically selected for development to ensure competition
• The one whose prototype performs better in comparative trials receives the production contract
• Minimum 50% indigenous content is required in production

The iDEX programme is an accelerated fast-track variant of Make-II for startups and MSMEs, with grant funding for very early-stage innovation. DRDO may also transfer technologies to Indian companies for Make-category production.

Why the Make Category matters for Indian government suppliers

The Make Category is the most important pathway for Indian companies that have proprietary technology and want to build a long-term defence business. A successful Make-II development, funded entirely by the company, can yield a production contract worth hundreds of crores with a first-mover advantage. For larger companies willing to absorb a 30% development cost share, Make-I provides government-backed development with a near-guaranteed production contract on success.

Example

An Indian robotics company submits an unsolicited Make-II proposal to the Army for an autonomous logistics robot. The proposal is accepted, and the company develops a prototype over 24 months at its own cost of INR 12 crore. After successful comparative trials against a competing developer, the company receives a production contract for 500 robots worth INR 280 crore, with Buy (Indian, IDDM) classification given the product's fully indigenous design.

Frequently Asked Questions

Who can submit Make-II proposals?

Any Indian company, private or public sector, large or small, can submit Make-II proposals either in response to a government RFP or as an unsolicited proposal. The ability to submit proactively makes Make-II the most accessible innovation pathway in defence procurement.

How many developers are selected per Make category programme?

Typically two developers are selected in Make-I to ensure a competitive development phase. For Make-II, the government may select two or more developers if multiple credible proposals are received. The final production contract is awarded to the successful developer after comparative trials.

What happens if the Make category development fails?

For Make-I, if the developer fails to deliver a satisfactory prototype, the government may initiate procurement through other categories. The developer retains any prototypes built with the government-funded 70% but typically has no recourse for the 30% self-funded portion. For Make-II, the developer bears the full loss if development fails.

Is iDEX the same as the Make Category?

iDEX (Innovations for Defence Excellence) is a related but distinct programme that provides grants up to INR 1.5 crore (and in some challenges higher) to startups and MSMEs for very early-stage defence innovation. Successful iDEX developments may mature into formal Make-II or IDDM procurement, but iDEX itself is a pre-Make development incubation programme.