The Defence Acquisition Council (DAC), led by Defence Minister Rajnath Singh, has cleared defence projects worth ₹67,000 crore aimed at enhancing the capabilities of the Indian Army, Navy, and Air Force. The approvals emphasize the Make in India initiative, with major contributions from HAL, BEL, and BDL.
In a major push towards strengthening India’s defence capabilities and enhancing indigenous manufacturing, the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, approved proposals worth approximately ₹67,000 crore on August 5, 2025. These significant approvals span across all three branches of the Indian armed forces — Army, Navy, and Air Force — and mark another key step in reinforcing the Make in India initiative.
This round of approvals strongly reinforces the government’s commitment to domestic defence production, with significant roles being played by Indian defence manufacturers such as Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), and Bharat Dynamics Limited (BDL). The focus is on creating a robust ecosystem for self-reliance in defence manufacturing, reducing dependence on imports, and modernising India’s military capabilities with cutting-edge indigenous technologies.
The impact of these decisions is also expected to reflect on the stock market, particularly on defence-linked public sector units like HAL, BEL, and BDL, which are anticipated to benefit from the spike in orders and contracts.
For the Indian Army, one of the key procurement approvals includes Thermal Imager-based Driver Night Sights for BMP Infantry Combat Vehicles. These advanced thermal sights will significantly enhance the Army’s night-time mobility and combat capability by improving visibility in low-light conditions. This upgrade is crucial for mechanised infantry units operating in varied terrains, especially during high-risk night operations.
The Indian Navy will witness a major technological enhancement with the approval of multiple systems designed to strengthen its anti-submarine warfare and point defence capabilities. Among the most notable approvals is the procurement of Compact Autonomous Surface Crafts (CASCs). These unmanned vessels will aid in detecting, classifying, and neutralising underwater threats, offering a cutting-edge solution for modern naval warfare.
Further, the DAC has cleared upgraded fire control systems and launchers for the BrahMos missile, along with a modernised BARAK-1 Point Defence Missile System. These systems will significantly improve the Navy’s readiness and responsiveness in hostile maritime scenarios.
The Indian Air Force (IAF) is set to benefit from a series of radar and air defence upgrades. One key approval is the procurement of new Mountain Radars tailored for high-altitude surveillance, particularly useful in challenging terrains along India’s borders.
Another major upgrade involves the SAKSHAM/SPYDER Weapon System, which will be integrated with the Integrated Air Command and Control System (IACCS). This integration will lead to a more responsive and coordinated air defence strategy, further strengthening the IAF’s capability to counter aerial threats.
Among the most strategic approvals by the DAC is the procurement of Medium Altitude Long Endurance (MALE) Remotely Piloted Aircraft (RPA) for the Army, Navy, and Air Force. These advanced drones are designed for long-duration surveillance and can be equipped with multiple sensors and weapons. Their ability to conduct persistent ISR (Intelligence, Surveillance, and Reconnaissance) operations and precision strikes will significantly augment India’s modern combat and border monitoring strategies.
Recognising the importance of sustaining its air power, the DAC has also approved long-term support and maintenance plans for key air assets. This includes proposals to sustain the C-17 Globemaster and C-130J Super Hercules transport aircraft fleets, which are vital for strategic airlift operations.
Additionally, the Council sanctioned a comprehensive annual maintenance contract for the S-400 Long Range Air Defence Missile System, ensuring its consistent operational availability.
The DAC’s approval of ₹67,000 crore worth of defence projects marks a significant stride towards India’s goal of Atmanirbhar Bharat (self-reliant India) in defence. By combining cutting-edge technology, strategic foresight, and domestic manufacturing, the government is not only strengthening the nation’s security apparatus but also laying the foundation for India to emerge as a global defence production hub.
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