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Centre approves defence deals worth ₹2.12 lakh cr.

The DAC has approved defence procurement proposals worth ₹2.12 lakh crore for the Army, Navy and Air Force, with 82% earmarked for domestic industry. These approvals aim to modernise the armed forces, enhance combat readiness, promote advanced technologies and strengthen Atmanirbhar Bharat. Timely execution, genuine indigenisation and quality assurance remain crucial.

27 Oct 2026 4 min read 6 views
Centre approves defence deals worth ₹2.12 lakh cr.

Quick Revision

Why in news: Recently, the Defence Acquisition Council (DAC), headed by Defence Minister Rajnath Singh, has approved Acceptance of Necessity (AoN) for the proposals for procurement of military equipment and platforms worth around Rs. 2.12 lakh crore for the Indian Army, Navy and Air Force. Around 82% of the total value of procurement has been allotted to the domestic defence industry. The objective of these approvals is to boost India’s military strength, modernisation of its armed forces and self-reliance in defence manufacturing.

Background

  • Defence Acquisition Council (DAC): The apex decision-making body of the Ministry of Defence for capital acquisitions in defence. It is chaired by the Defence Minister.

  • Acceptance of Necessity (AoN): An initial approval indicating the operational need for a proposed defence acquisition. It is not the same as the final procurement contract.

  • Atmanirbhar Bharat: India has increasingly prioritised indigenous defence production to reduce dependence on foreign suppliers.

  • Changing nature of warfare: Modern conflicts increasingly involve drones, electronic warfare, precision weapons, air defence systems and real-time battlefield surveillance.

  • Defence indigenisation: Initiatives such as the Positive Indigenisation Lists, defence industrial corridors and the promotion of domestic private-sector participation seek to strengthen India's defence manufacturing ecosystem.

Features

Indian Army

  • High Mobility Vehicles (HMVs): Improve logistics and troop mobility.

  • Self-propelled tracked gun systems: Enhance artillery mobility and firepower.

  • Gun Shot Response Systems (GSRS): Improve situational awareness and help identify the source of hostile fire.

  • Light Multi-Role Helicopters (LMRHs): Support reconnaissance, surveillance, combat, search and rescue, and disaster relief.

  • Very Short-Range Air Defence Systems (VSHORADS): Counter emerging low-altitude aerial threats.

  • Counter-Unmanned Aerial Systems (C-UAS): Protect military platforms against hostile drones.

  • Surveillance UAVs and long-range unmanned systems: Strengthen reconnaissance, target identification and strike capabilities.

Indian Navy

  • Active Offboard Decoy Systems (AODS): Help divert incoming anti-ship missiles away from naval vessels.

  • Indigenous naval platforms: Enhance maritime combat capabilities and support domestic shipbuilding and defence production.

Indian Air Force (IAF)

  • Helicopters and special utility helicopters: Meet operational mobility and transport requirements.

  • Air defence systems and weapons: Strengthen air defence and combat preparedness.

  • Mobile X-band Doppler weather radar systems: Provide localised, high-resolution weather information for operational planning and aviation safety.

Significance

  • Enhanced combat readiness: Modern equipment improves the operational effectiveness of all three Services.

  • Strategic autonomy: Domestic production reduces reliance on foreign suppliers and strengthens India's freedom of action during geopolitical crises.

  • Boost to the domestic defence industry: The 82% domestic procurement allocation can benefit Indian manufacturers, MSMEs, start-ups and defence technology developers.

  • Technological advancement: Greater emphasis on drones, surveillance, counter-drone systems and advanced air defence supports adaptation to modern warfare.

  • Economic benefits: Defence manufacturing can generate skilled employment, encourage research and development, and strengthen supply chains.

  • Improved joint operations: Modern platforms and surveillance systems can enhance coordination among the Army, Navy and Air Force.

Challenges

  • Implementation delays: Procurement can face lengthy trials, negotiations, production bottlenecks and delivery delays.

  • Critical technology dependence: Domestic assembly does not necessarily mean complete indigenisation; engines, sensors, semiconductors and specialised components may still require imports.

  • Cost escalation: Complex defence projects can exceed initial estimates and strain defence budgets.

  • Quality and reliability: Indigenous equipment must meet demanding military standards and perform reliably in diverse operational environments.

  • Limited production capacity: Domestic firms may struggle to meet large-scale requirements within tight timelines.

  • Rapid technological obsolescence: Drone warfare, artificial intelligence and electronic warfare technologies evolve quickly, potentially reducing the relevance of equipment procured today.

  • Import dependence during transition: India's armed forces must maintain operational readiness while domestic manufacturing capabilities develop.

Way Forward

  • Strengthen indigenous R&D: Increase investment in defence research, testing facilities and advanced technologies through DRDO, academia, start-ups and private industry.

  • Promote genuine indigenisation: Develop domestic capabilities in engines, propulsion, radar, sensors, electronics and other critical components.

  • Ensure timely execution: Establish clear project milestones, accountability mechanisms and regular progress reviews.

  • Support MSMEs and start-ups: Improve access to defence contracts, testing infrastructure, finance and technology transfer.

  • Adopt a life-cycle approach: Consider maintenance, repair, upgrades, spare parts and long-term operating costs alongside initial acquisition costs.

  • Encourage jointness: Improve interoperability and common operational standards among the Army, Navy and Air Force.

  • Develop adaptable systems: Prioritise modular, upgradeable platforms that can incorporate emerging technologies without expensive complete replacements.

  • Strengthen export competitiveness: Use domestic procurement to build globally competitive products and expand India's defence exports.

Conclusion

The approval of the proposals for defence procurement amounting to ₹2.12 lakh crore is an important milestone in the journey of defence modernisation and Atmanirbhar Bharat in defence. The intention of procuring 82% of the procurement amount from domestic sources provides a very good chance for building up the defence industry of India. But the true success of the approvals will be known from their timely execution.

UPSC Prelims Facts

Term: Centre Approves Defence Deals Worth ₹2.12 Lakh Crore

Meaning: The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, has approved Acceptance of Necessity (AoN)—an initial approval of operational need, not a final contract—for procurement of military equipment and platforms worth about ₹2.12 lakh crore for the Army, Navy and Air Force, with around 82% of the total value allotted to the domestic defence industry to boost military strength, modernisation and self-reliance in defence manufacturing.

Related: Defence Acquisition Council (DAC), Acceptance of Necessity (AoN), Atmanirbhar Bharat, Positive Indigenisation Lists, defence industrial corridors, High Mobility Vehicles (HMVs), Very Short-Range Air Defence Systems (VSHORADS), Counter-Unmanned Aerial Systems (C-UAS), Active Offboard Decoy Systems (AODS), Mobile X-band Doppler weather radars, DRDO, MSMEs and start-ups.

Core Themes: Enhanced combat readiness across the three Services; strategic autonomy through reduced foreign dependence; 82% domestic procurement boosting Indian manufacturers, MSMEs and start-ups; technological advancement in drones, surveillance and counter-drone systems; economic benefits of skilled employment, R&D and supply chains; improved joint operations; challenges of implementation delays, critical technology dependence (engines, sensors, semiconductors), cost escalation, quality and reliability, limited production capacity, rapid obsolescence and transition-period import dependence; way forward through indigenous R&D, genuine indigenisation, timely execution, MSME support, life-cycle approach, jointness, adaptable modular systems and export competitiveness.

Prelims angle

Focus on key facts, terms and institutions mentioned above.

Mains angle

Link to relevant GS themes and frame analytical points.

Syllabus: Security, Defence

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