DAC Approves ₹1.05 Lakh Crore to Strengthen Indian Armed Forces’ Combat Capabilities
INDIAN DEFENCE
DAC Approves ₹1.05 Lakh Crore to Strengthen Indian Armed Forces’ Combat Capabilities
In a landmark move underscoring India’s commitment to military modernization and self-reliance, the Defence Acquisition Council (DAC) has approved a ₹1.05 lakh crore procurement package to bolster the combat capabilities of the Indian Armed Forces. This significant development comes amid rising regional threats, strategic competition in the Indo-Pacific, and a resolute push toward the Atmanirbhar Bharat (Self-Reliant India) initiative in the defence sector.
Chaired by Defence Minister Rajnath Singh, the DAC’s latest approval covers a wide array of indigenous military platforms, advanced weapon systems, sensors, and critical technologies aimed at ensuring operational preparedness of the Army, Navy, and Air Force.
What Is the Defence Acquisition Council (DAC)?
Established in 2001, the Defence Acquisition Council (DAC) is the apex body under the Ministry of Defence responsible for approving capital acquisitions for the Indian military. It plays a crucial role in shaping defence policy and aligning acquisitions with long-term strategic goals.
Chaired by the Defence Minister, it includes senior officials from the military, defence research, finance, and industry coordination wings.
The ₹1.05 Lakh Crore Defence Boost: Key Highlights
According to official sources, the majority of the ₹1.05 lakh crore allocation is earmarked for indigenously designed and developed equipment, aligning with the government’s emphasis on reducing import dependency and promoting local manufacturing.
Key Focus Areas Include:
Fighter aircraft upgrades and procurement
State-of-the-art air defence systems
Surveillance and reconnaissance platforms
Naval combat systems and submarines
Tactical communication and cyber warfare gear
Armoured vehicle modernization
Advanced ammunition and artillery systems
Electronic warfare and jamming systems
The approval is under the Buy (Indian-IDDM) and Buy (Indian) categories, ensuring that Indian defence companies, including PSUs and private sector firms, are directly involved in production and development.
Indian Air Force: Enhancing Air Dominance
A significant portion of the approved funds is directed toward strengthening the Indian Air Force (IAF), which has been undergoing a phased modernization program.
Likely IAF Projects:
Tejas Mk1A and Mk2 fighter aircraft
Indigenous production of jet engines in collaboration with GE Aerospace
Acquisition of air-launched missiles and guided bombs
Upgrades to Su-30 MKI, Mirage 2000, and Jaguar fleets
Procurement of AEW&C (Airborne Early Warning and Control) systems
These procurements are expected to significantly boost the IAF’s surveillance, precision-strike, and air superiority capabilities in contested environments.
Indian Navy: Expanding Blue-Water Power
For the Indian Navy, the DAC approval supports a mix of surface and undersea capabilities. As maritime threats in the Indo-Pacific grow, India is investing in fleet modernization, shipborne sensors, and anti-submarine systems.
Navy-Focused Procurement Likely Includes:
Next-generation stealth frigates and corvettes
Indigenous diesel-electric submarines under Project-75I
Upgrades to sonar, radar, and electronic warfare suites
Naval helicopters for surveillance and anti-submarine roles
Autonomous Underwater Vehicles (AUVs) and maritime drones
These initiatives aim to enhance India’s maritime domain awareness, deterrence against adversaries, and long-range strike capability at sea.
Indian Army: Boosting Land Warfare Readiness
The Indian Army is set to benefit from tactical equipment upgrades and improved firepower in forward areas, especially in view of ongoing border tensions.
Key Additions for the Army:
New-generation armoured fighting vehicles (AFVs)
Self-propelled artillery and rocket systems
Loitering munitions and anti-tank guided missiles (ATGMs)
Secure battlefield communication systems
Advanced night-vision equipment and thermal imagers
With greater emphasis on mountain warfare readiness, these assets will reinforce operational strength along India's northern borders.
Technological Edge: Cyber, Space, and AI
The DAC also emphasizes investment in futuristic domains like:
Cyber warfare and information security tools
Electronic warfare systems and jammers
Satellite-based surveillance
Artificial Intelligence (AI) and autonomous platforms
Integrated command and control systems
These efforts aim to make the Indian Armed Forces network-centric, agile, and tech-enabled, capable of joint operations across domains.
Boost for Atmanirbhar Bharat & Defence Industry
A remarkable aspect of this procurement is that over 90% of the projects will be executed through Indian companies, both public and private. The move:
Encourages indigenous defence manufacturing
Enhances employment and skill development
Drives R&D investment and innovation
Builds long-term supply chain resilience
Top Indian firms like HAL, BEL, BDL, L&T Defence, Tata Advanced Systems, and Bharat Forge are expected to gain significantly from the contracts and production orders.
Market Response and Investor Sentiment
Following the announcement, defence sector stocks saw renewed interest on the stock exchanges. Companies such as HAL, BEL, and Bharat Dynamics witnessed intraday gains, as analysts projected strong order books and revenue visibility over the next 5–10 years.
Foreign investors and institutional funds are also eyeing India’s Make-in-India defence ecosystem as a long-term play, especially as the country rises as a strategic counterweight in Asia.
Strategic Implications
This procurement move is not just a financial decision—it reflects India’s evolving strategic posture:
Countering China’s assertiveness in the Himalayas and Indo-Pacific
Reducing import dependency on Russia and Western arms
Building a self-reliant, export-ready defence base
Improving India’s status as a regional security provider
By focusing on indigenous capabilities, India ensures supply chain sovereignty, operational independence, and geopolitical leverage.
Conclusion
The DAC’s approval of ₹1.05 lakh crore marks a pivotal moment in India’s defence modernization journey. It sends a clear message of preparedness, strategic clarity, and technological ambition. As the Indian Armed Forces gear up for future challenges, this investment underscores the government’s commitment to securing the nation through self-reliance.
With projects set to roll out in the coming months, stakeholders in the defence ecosystem — from industry to armed forces to citizens — can look forward to a stronger, smarter, and more self-sufficient India.
