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India Clears Rs 2.12 Lakh Crore Defence Buys

India’s Defence Acquisition Council has approved proposals worth Rs 2.12 lakh crore for the armed forces, with about 82% of the planned procurement value earmarked for domestic industry

The clearances span the Army, Navy and Air Force, covering artillery, helicopters, air-defence equipment, drones, surveillance systems and naval platforms. The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, granted Acceptance of Necessity (AoN) to the proposals on Monday, October 26. AoN is an initial approval in India’s acquisition process-not a contract award or confirmation that orders have been placed. The proposals must progress through later procurement stages, including tendering and contract decisions.

For the Army, the approved categories include high-mobility vehicles, self-propelled tracked gun systems, gunshot response systems, light multi-role helicopters and very short-range air-defence systems. The council also cleared platform-based counter-unmanned aerial systems, other unmanned aircraft, surveillance drones, an integrated surveillance and strike system and long-range kamikaze drone systems.

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The ministry said the high-mobility vehicles are intended to improve movement and logistics in difficult terrain, while tracked guns would combine mobility with firepower for mechanised formations. Gunshot response systems are designed to provide real-time situational awareness. Very short-range air-defence systems are intended to counter small aerial threats, and counter-drone equipment is expected to improve tank survivability.

The helicopter proposals address requirements across two services. Light multi-role helicopters are intended for use by both the Army and Air Force, including reconnaissance, surveillance, combat, search and rescue, and humanitarian and disaster-relief missions. Separate special utility helicopters received approval to meet the Air Force’s air-transport needs.

For the Navy, the approvals include an active offboard decoy system and other major naval platforms. The decoy system is intended to strengthen protection against modern anti-ship missiles. The ministry described the naval platforms as indigenously designed and constructed, with modern warfare capabilities, but did not disclose details such as their number or delivery schedule. Separate reporting identified next-generation destroyers as part of the naval plan, though the ministry’s public statement did not specify the vessels.

The Air Force’s approved categories include helicopters, air-defence systems, weapons and mobile X-band Doppler weather radar systems. The radar is intended to provide high-resolution, localised weather surveillance in forward areas. The range of approvals reflects demand for both combat equipment and support capabilities, from air defence and surveillance to transport and battlefield mobility.

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The domestic sourcing commitment is a central feature of the package. The government said approximately 82% of the approved procurement value would come from Indian industry. That could create opportunities for manufacturers in aerospace, artillery, electronics, radar, sensors, unmanned systems and naval equipment. But the figure represents a planned sourcing share, not revenue already secured by companies. Suppliers, contract values and timelines will depend on the subsequent competition and award process.

The approvals arrive amid the government’s broader push to expand defence production and reduce reliance on imports. Defence production reached a record ₹1.78 lakh crore in the financial year 2025-26. The government has set a target of ₹3 lakh crore in defence manufacturing by 2029-30, alongside an export target of ₹50,000 crore. Those ambitions make the domestic share of the new proposals significant, but execution will depend on whether Indian firms can meet technical requirements, deliver equipment on schedule and sustain production.

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The latest decision follows another round of DAC clearances reported in September, valued at ₹1.1 lakh crore. Together, the announcements indicate a sizeable pipeline of proposed acquisitions, but not a corresponding stream of immediate orders. Each project must move through the acquisition process before manufacturers can count on contracts or the armed forces can expect delivery.

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