India has taken another major step towards strengthening its military capabilities and reducing dependence on foreign defence imports.  Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, has granted Acceptance of Necessity (AoN)—the in-principle approval stage—for defence procurement proposals worth approximately ₹1.10 lakh crore.

A significant feature of the latest approvals is the emphasis on domestic manufacturing. According to the Defence Ministry, around 98% of the proposed procurements are expected to be sourced from Indian industry. The decision covers requirements of the Indian Army, Navy and Air Force and is aimed at improving operational preparedness while giving a substantial boost to the country’s indigenous defence manufacturing ecosystem.

DAC Major push for indigenous defence production

The latest DAC approvals underline the government’s continuing focus on Atmanirbhar Bharat in the defence sector. With almost the entire procurement package expected to come from Indian companies, the move could create significant opportunities for both public-sector defence firms and private manufacturers.

The approvals span several technology and capability areas, including battlefield mobility, aviation, surveillance, naval propulsion and electronic warfare. The package includes advanced light helicopters, specialised military vehicles, radars, marine gas turbines, electronic warfare systems and mine-laying equipment.

The decision is particularly significant because domestic sourcing is no longer limited to relatively simple equipment. Increasingly sophisticated systems are being developed and manufactured in India, reflecting the gradual expansion of the country’s defence industrial base.

Army to receive specialised battlefield equipment

For the Indian Army, the approved proposals include a range of equipment designed to improve mobility, survivability and combat engineering capabilities.

Among the systems cleared are Chemical, Biological, Radiological and Nuclear (CBRN) reconnaissance vehicles, which are intended to help detect, identify and mark areas affected by hazardous substances. Such systems are important for military operations in environments where troops could face chemical, biological or radiological threats.

The Army will also acquire high-mobility vehicles, which are particularly important for operations in difficult terrain. Other approved equipment includes self-propelled mechanical mine layers, trawl tanks and the Sarvatra bridge system.

Advanced helicopters and mobility capabilities

The procurement package also includes Advanced Light Helicopters (ALHs). These helicopters can provide the armed forces with greater flexibility for troop movement, logistics, surveillance and operations in difficult terrain.

For India, helicopter capability is particularly important because of the country’s varied geography, including the Himalayan region and other areas where conventional ground transportation can be difficult.

Strengthening the helicopter fleet through indigenous platforms also fits into India’s broader effort to develop domestic aerospace manufacturing capabilities.

Navy gets new radars and propulsion technology

The Indian Navy is another major beneficiary of the latest DAC approvals. The procurement plan includes Arudhra radars, which are expected to strengthen surveillance capabilities at naval air stations.

The Arudhra is an indigenous radar system developed for detecting and tracking aerial targets. Increasing the use of domestically developed surveillance systems can help the Navy reduce dependence on imported equipment while improving the integration of different Indian-made systems into its operational network.

Another important approval concerns the indigenous development of marine gas turbines for warship propulsion. This is strategically significant because propulsion systems are among the most critical components of modern warships.

Air Force to strengthen electronic warfare

For the Indian Air Force, the procurement package includes Ground-Based Multi-Purpose Jammers. These systems are designed to strengthen electronic warfare capabilities by disrupting or degrading adversary radar and communication systems.

Electronic warfare has become increasingly important in modern conflicts, where control of the electromagnetic spectrum can directly affect the effectiveness of aircraft, missiles, drones, radar systems and communications networks.

Why the ₹1.10 lakh crore DAC approval matters

The financial scale of the latest approvals is substantial, but the more important aspect is the high level of domestic sourcing.

With about 98% of the procurement expected to come from Indian industry, the decision could translate into orders for domestic defence manufacturers, component suppliers, engineering companies and technology firms. It could also encourage investment in research, development and production capacity.

The market reaction reflected these expectations. Shares of several Indian defence companies rose after the announcement, with investors anticipating increased business opportunities from the procurement programme.

DAC Strengthening self-reliance in defence

India has been steadily increasing its emphasis on domestic defence production over the past several years. The objective is not simply to replace imports but to create a sustainable industrial ecosystem capable of designing, developing, manufacturing and maintaining sophisticated military systems.

The latest DAC decision fits into this larger strategy. It comes at a time when India is seeking to strengthen military readiness across land, sea and air domains while simultaneously expanding its domestic defence manufacturing capacity.

Greater indigenous production can also provide strategic advantages during international crises, when global supply chains may be disrupted or access to imported components may become difficult.

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A boost for India’s defence industry

The ₹1.10 lakh crore package could benefit a broad range of Indian companies. Large public-sector enterprises are likely to play a role, while private-sector firms and smaller suppliers could also participate in the supply chains.

India’s defence ecosystem has expanded considerably, with domestic companies increasingly involved in aerospace, missiles, radars, electronic warfare, naval systems and military vehicles.

The high domestic sourcing component of the latest approvals could therefore help deepen these supply chains and encourage greater private-sector participation.

Conclusion

The Defence Acquisition Council’s approval of defence procurement proposals worth approximately ₹1.10 lakh crore represents a major step in India’s ongoing military modernisation programme. The package covers all three services and includes CBRN reconnaissance vehicles, high-mobility vehicles, advanced light helicopters, mine-laying systems, radars, marine gas turbines, electronic warfare equipment and secure access systems.

The biggest takeaway, however, is the decision to source around 98% of the approved procurements from Indian industry. This gives the move significance beyond military modernisation, as it could strengthen India’s domestic defence manufacturing capabilities, create opportunities for Indian companies and reduce dependence on overseas suppliers.

As the proposals move through the subsequent stages of the acquisition process, their eventual implementation will be closely watched. If executed effectively, the latest approvals could simultaneously strengthen India’s armed forces and accelerate the country’s ambition to become a more self-reliant defence manufacturing power.