The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, approved capital acquisition proposals worth approximately ₹2.12 lakh crore on 26 October 2026. The proposals cover equipment for the Indian Army, Indian Navy and Indian Air Force. About 82% of the procurement value, or approximately ₹1.74 lakh crore, is to be sourced from domestic industry.
Acquisition approval and domestic sourcing
The DAC granted Acceptance of Necessity (AoN) for the proposals. AoN is the initial administrative approval in India’s defence procurement process; it does not itself constitute a completed purchase or delivery. The domestic sourcing share is linked to the Aatmanirbhar Bharat initiative and the government’s focus on defence manufacturing in India.
Equipment approved for the three services
For the Indian Army, the approvals include High Mobility Vehicles, Self-Propelled Tracked Gun Systems, Gun Shot Response Systems, Light Multi-Role Helicopters (LMRH), Very Short-Range Air Defence Systems (VSHORADS), counter-unmanned aerial systems, and drone systems. The drone proposals include long-range kamikaze drones and surveillance unmanned aerial vehicles. The K9 Vajra-T is among the additional self-propelled artillery systems covered by the approvals.
The Indian Navy received AoN for Active Offboard Decoy Systems and indigenously designed and constructed major naval platforms, including next-generation destroyers. Active Offboard Decoy Systems are intended to support anti-missile defence against modern anti-ship missiles. Indian Air Force approvals include Special Utility Helicopters, air-defence systems, weapons and Mobile X-Band Doppler Weather Radar Systems for localised weather surveillance in forward areas.
LMRH are intended for use by both the Army and the Air Force in reconnaissance, surveillance, combat, search and rescue, and humanitarian assistance and disaster relief. Approximately 200 helicopters are planned, with production mandated in India.
Procurement and manufacturing context
The DAC had cleared proposals worth ₹1.1 lakh crore in September 2026. India’s defence production reached ₹1.78 lakh crore in financial year 2025–26, compared with ₹1.54 lakh crore in the previous financial year. The government’s defence manufacturing target is ₹3 lakh crore by 2029–30.
Important Facts for Exams
- Acceptance of Necessity is the first administrative step in the defence procurement process.
- The Defence Acquisition Council is chaired by India’s Defence Minister.
- VSHORADS is the abbreviation for Very Short-Range Air Defence System.
- LMRH stands for Light Multi-Role Helicopter.
India also has a defence export target of ₹50,000 crore by 2029–30. The October 2026 approvals allocate approximately 82% of their value to domestic sourcing.
