DAC Approves Rs 1.10 Lakh Crore Defence Deals, 98% From Indian Firms

India has moved to accelerate its defence modernisation programme with the Defence Acquisition Council (DAC) clearing acquisition proposals worth approximately Rs 1.10 lakh crore for the armed forces. The approvals, granted on Monday, are set to create a substantial demand pipeline for domestic defence manufacturers.

The DAC, chaired by Defence Minister Rajnath Singh, granted Acceptance of Necessity (AoN) — the in-principle administrative approval — for a range of proposals spanning the Indian Army, Navy, and Air Force. A defining feature of the latest round is the overwhelming preference for indigenous procurement, with nearly 98 per cent of the total value earmarked for purchases from Indian industry.

For the Indian Army, the approved list includes Chemical, Biological, Radiological and Nuclear (CBRN) Recce Vehicles, High Mobility Vehicles, Self-Propelled Mechanical Mine Layers, Advanced Light Helicopters, Trawl Tanks, and the Sarvatra Bridge System. The CBRN vehicles are intended to bolster the Army's capability to detect, identify, and monitor contaminated zones, while the high-mobility vehicles are designed to enhance operational logistics in challenging terrain.

The Navy's approvals cover the acquisition of Arudhra Radars and the design, development, and subsequent procurement of Marine Gas Turbines (MGTs). The new radar systems will replace existing air-route surveillance radars at naval air stations. The domestically developed MGTs are expected to cut reliance on foreign vendors for warship propulsion.

For the Indian Air Force, the DAC cleared proposals aimed at enhancing the war-fighting capabilities of its fighter jets, transport aircraft, and helicopters. The council also approved the procurement of Ground-Based Multi-Purpose Jammers and the installation of the Defence Forces Secure Access Card system.

The scale of the approvals, combined with the high share reserved for local industry, is expected to support capacity expansion across the domestic defence manufacturing ecosystem. The move strengthens indigenous capabilities in critical areas such as surveillance, propulsion, and electronic warfare.