DAC Approves ₹1.05 Lakh Crore Defence Procurements

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10 major capital acquisition proposals cleared under Buy (Indian-IDDM) category, reaffirming push for self-reliance in defence

By TRH News Desk

NEW DELHI, July 3, 2025 – In a significant boost to India’s defence indigenisation efforts, the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, on Thursday approved capital acquisition proposals worth approximately ₹1.05 lakh crore. All 10 proposals were cleared under the Buy (Indian – Indigenously Designed, Developed and Manufactured) [Buy (Indian-IDDM)] category, aligning with the government’s Atmanirbhar Bharat (self-reliant India) initiative.

According to a statement by the Press Information Bureau (PIB), the Acceptance of Necessity (AoN) was accorded for a range of equipment and systems that will enhance operational capabilities across the Army, Navy, and Air Force. These include Armoured Recovery Vehicles (ARVs), Electronic Warfare Systems, an Integrated Common Inventory Management System (ICIMS) for the Tri-Services, and Surface-to-Air Missiles—critical to improving mobility, logistics coordination, and air defence.

In addition, the DAC cleared proposals for procuring Moored Mines, Mine Counter Measure Vessels (MCMVs), Super Rapid Gun Mounts, and Submersible Autonomous Vessels (SAVs) for the Indian Navy. These platforms will strengthen the Navy’s ability to secure maritime trade routes and counter underwater threats to both naval and merchant shipping.

The PIB noted that all proposals have been greenlit under the Buy (Indian-IDDM) category, which mandates that the equipment be designed, developed, and manufactured domestically. This underscores the Ministry of Defence’s sustained focus on reducing dependency on imports and strengthening India’s defence industrial base.

Strengthening Indigenisation Momentum

This round of approvals follows a series of recent major indigenisation moves by the Ministry of Defence. In March 2024, the DAC had cleared capital acquisitions worth over ₹80,000 crore under the same category, including next-generation Offshore Patrol Vessels and long-range radars. In October 2023, proposals worth ₹45,000 crore were approved, including Light Combat Helicopters and Next Generation Corvettes, most of which were also under Buy (Indian-IDDM).

In May 2023, the government introduced the fifth Positive Indigenisation List, restricting imports of 98 more military items. Combined with earlier lists, this move has paved the way for domestic manufacturers to step up and fill capability gaps previously met through foreign procurement.

Supporting MSMEs and Indian Industry

A key emphasis of these capital acquisition approvals is on promoting Indian start-ups, MSMEs, and large private sector manufacturers. The procurement of advanced systems like SAVs and ICIMS will create opportunities for Indian defence firms to develop cutting-edge technologies in collaboration with DRDO and the Armed Forces.

The Ministry of Defence has been encouraging industry partnerships through initiatives such as iDEX (Innovations for Defence Excellence), and the latest clearances are expected to generate thousands of jobs, boost R&D, and reduce long-term procurement costs.

Defence Minister Rajnath Singh has repeatedly stressed that achieving self-reliance in defence is a strategic imperative. “A strong and self-reliant defence ecosystem is vital for national security and economic growth,” he had said during the Defence Expo 2024.

With today’s DAC decisions, India moves another step closer to realising that vision by empowering domestic industry and modernising the Armed Forces with indigenous solutions. The proposals will now proceed through the procurement process, involving competitive bidding, vendor development, and final contracts.

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