DSA Correspondent

DateAugust 7, 2025
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Defence Acquisition Council Approves ₹67,000 Crore for Armed Forces Modernisation: A Bold Leap Toward Self-Reliant Defence.

In a major move to bolster India’s military preparedness and strategic autonomy, the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, approved proposals worth ₹67,000 crore on August 5, 2025. This marks one of the most significant investments in India’s defence modernisation drive in recent years.

The approvals come under the Buy (Indian-IDDM) and Buy & Make (Indian) categories, further strengthening the government's commitment to the Make in India and Atmanirbhar Bharat (self-reliant India) missions.

What’s in the ₹67,000 Crore Package?

The approved projects span all three services- the Indian Army, Navy, and Air Force and are designed to bridge critical capability gaps while ensuring long-term self-sufficiency in defence production.

A. Long-Endurance Drones (MALE RPAs)

  1. Procurement of Medium-Altitude Long-Endurance (MALE) Remotely Piloted Aircraft (RPAs) for surveillance and reconnaissance.
  2. These drones will support multi-theatre ISR (Intelligence, Surveillance, Reconnaissance) operations.
  3. To be indigenously designed and developed by Indian firms, boosting domestic aerospace capability.

B. Autonomous Surface Vessels for the Indian Navy

  1. Approval for Unmanned Surface Vessels (USVs) to enhance maritime situational awareness and patrolling.
  2. These vessels can operate in high-risk zones without human intervention, vital for safeguarding India’s maritime interests.

C. Mountain Radars for High-Altitude Border Surveillance

  1. Deployment of cutting-edge radar systems optimised for mountainous terrain, especially in northern and northeastern frontiers.
  2. Enhances India’s ability to monitor high-altitude infiltration and movement in strategically sensitive regions like Ladakh, Arunachal Pradesh, and Sikkim.

D. SPYDER Air Defence Missile Systems

  1. A major upgrade for the Indian Air Force’s SPYDER missile systems, which provide quick-reaction, short-to-medium-range air defence.
  2. The modernisation will enable improved target tracking and faster engagement of aerial threats, including UAVs and fighter jets.

E. Infantry Combat Vehicle Upgrades

  1. Comprehensive upgrades to the existing fleet of mechanised infantry vehicles, making them more lethal, mobile, and survivable on the battlefield.
  2. These include firepower enhancements, better communication suites, and improved armour systems.

Strengthening the Indian Defence Industry

A large portion of these procurements will benefit India’s top defence public sector undertakings (DPSUs), including:

  1. Hindustan Aeronautics Limited (HAL)
  2. Bharat Electronics Limited (BEL)
  3. Bharat Dynamics Limited (BDL)

Private sector firms are also expected to play a critical role in design, development, and manufacturing, creating new opportunities for Indian MSMEs, startups, and Tier 2/3 suppliers.

This aligns perfectly with the Defence Production and Export Promotion Policy (DPEPP) 2020, which aims to achieve a turnover of ₹1.75 lakh crore in defence manufacturing by 2025.

Strategic and Geopolitical Significance

  1. The procurement reinforces India’s resolve to reduce import dependency, particularly on critical technologies like drones and radar.
  2. The deployment of mountain radars and autonomous systems will act as a force multiplier in border regions where infrastructure is still under development.
  3. With geopolitical tensions in the Indo-Pacific and ongoing challenges along the LAC, such defence enhancements are timely and strategically vital.

What's Next?

While the DAC’s approval is a major step, procurement contracts will now move to the negotiation and implementation phase. This will involve:

  1. Vendor selection through competitive bidding
  2. Finalisation of delivery timelines
  3. Infrastructure upgrades and training for integration
  4. Industry watchers and defence analysts will be closely monitoring how quickly these projects translate into on-ground capabilities.

Conclusion: A Decisive Moment for Atmanirbhar Bharat in Defence

The ₹67,000 crore approval is not just a budgetary announcement, it is a strategic vision in motion. From unmanned maritime systems to high-altitude surveillance and combat readiness, India is making it clear: we will build, upgrade, and defend, the Indian way.

This moment sets the tone for a new era of indigenous innovation, resilient defence supply chains, and enhanced national security.