DAC Clears ₹2.12 Lakh Crore Defence Acquisition Proposals

The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, has approved Acceptance of Necessity (AoN) proposals for capital acquisitions worth approximately ₹2.12 lakh crore for the Indian Army, Navy and Air Force on October 26, 2026. Around 82% of the proposed procurement is earmarked for Indian industry, creating opportunities for domestic defence manufacturers.

For the Indian Army, the approvals cover self-propelled tracked gun systems, high-mobility vehicles, light multi-role helicopters, very short-range air defence systems and counter-drone equipment. The proposals also include surveillance unmanned aerial vehicles (UAVs), integrated surveillance and strike systems, and long-range kamikaze drones to strengthen battlefield monitoring and strike capabilities.

For the Indian Navy, the council approved proposals for Active Offboard Decoy Systems to enhance protection against modern anti-ship missiles, along with other naval platforms. The Indian Air Force received approvals for helicopters, air defence systems, weapons and mobile X-band Doppler weather radars to improve operational readiness and weather monitoring in forward areas.

The proposed acquisitions focus on strengthening mobility, surveillance, precision-strike capabilities and protection against emerging aerial threats across the three services. The emphasis on drones and counter-drone systems also reflects the growing role of unmanned technologies in modern warfare.

The approvals are at the Acceptance of Necessity stage, which provides in-principle clearance for the proposed acquisitions. The projects must undergo further procurement procedures before contracts are awarded and suppliers and delivery schedules are finalised.

With around 82% of the proposed procurement earmarked for Indian industry, the approvals could provide a significant opportunity for domestic defence manufacturers and support the growth of India’s defence production ecosystem.

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