DSA Correspondent

DateJuly 4, 2025
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DAC Gives Green Light to ₹1.05 Lakh Crore Defence Boost

The Defence Acquisition Council (DAC), led by Defence Minister Rajnath Singh, has approved initial proposals to purchase military hardware worth ₹1.05 lakh crore. These purchases aim to strengthen India’s armed forces and focus entirely on indigenous production through the “Buy (Indian-IDDM)” policy.

What Was Approved?

During its first meeting since Operation Sindoor began, the DAC cleared 10 major capital acquisition proposals. These include: Armoured Recovery Vehicles, to help repair and evacuate tanks on the battlefield; Electronic Warfare Systems, to improve detection and counter enemy signals; Quick‑Reaction Surface-to-Air Missiles (QR‑SAM), to boost air defence capabilities; and an Integrated Common Inventory Management System, to streamline logistics across Army, Navy, and Air Force. For the Navy specifically, the council approved: Mine Counter-Measure Vessels and moored sea mines, to protect coastal waters; and Super Rapid Gun Mounts and unmanned submersible vessels, enhancing naval firepower and surveillance.

Why It Matters

These steps are part of India’s push for “Aatmanirbhar Bharat” (self-reliance) in defence manufacturing. The DAC’s “Buy (Indian-IDDM)” policy means all approved items will be sourced from Indian firms—public or private—supporting domestic industry. According to the Defence Ministry, these assets will: improve mobility on land; strengthen air defence across the country; make supply and logistics faster and more efficient; and enhance maritime security, protecting India’s seas.

Strategic Context

This huge procurement comes amid Operation Sindoor, an ongoing military operation. The DAC’s meeting signals a major push to upgrade defence capabilities in response to current challenges 

Additionally, the focus on QR-SAMs and electronic warfare is linked to improving India’s airspace protection, building on past achievements of systems like Akashteer, an automated air defence command and control system.

Boost for Defence-Makers and Investors 

The ₹1.05 lakh crore approvals also buoy defence stocks. Markets expect strong demand for IDDM products from companies like BEL, HAL, and private-sector players. These approvals are Acceptance of Necessity (AoN) steps—the DAC has given the green light to proceed. Next, contracts will be formalised, timelines finalised, and production will begin. The result: faster induction of critical hardware into the armed forces. make this one paragraph with subheading