Defence Acquisition Council Approves Proposals Worth Rs 67,000 Crore

In early August 2025, India’s Defence Acquisition Council (DAC) chaired by Defence Minister Rajnath Singh, approved procurement proposals worth about ₹67,000 crore ($7.6 million). While smaller than some of India’s recent major procurement green-lights the package includes new hardware like night-vision gear and long-range drones designed to enhance the mobility, surveillance, and firepower of the Army, Navy, and Air Force.

The Army received approval to buy thermal-imager driver’s night sights for its BMP infantry vehicles. This will significantly enhance the night-operations capabilities of India’s mechanized units. The government described these approvals as a key step in modernizing India’s forces and reducing import dependence under the Atmanirbhar Bharat (Self-Reliant India) initiative.

DAC’s ₹67,000 crore package is a significant boost to India’s defense. (Indian MoD)

On the naval front, the DAC cleared deals for Compact Autonomous Surface Crafts (unmanned anti-submarine boats), BrahMos missile fire-control systems and launchers, as well as upgrades to the BARAK-1 air-defense missile system. The new autonomous vessels will help the Navy detect and neutralize underwater threats in littoral zones. Most of these systems will be built domestically under India’s Make in India guidelines. Major local defence firms, such as Bharat Electronics Ltd (BEL) and Larsen & Toubro (L&T), which already supply radars and missile electronics, are expected to produce a significant portion of the equipment. For instance, BEL already manufactures the BMP night-sights and many radar components, while Bharat Dynamics (BDL) is poised to handle the BARAK-1 upgrade work.

For the Air Force, approvals include advanced mountain-surveillance radars and an upgrade of the SAKSHAM/SPYDER surface-to-air missile system. These radars will enhance air surveillance along India’s high-altitude northern borders and the SPYDER upgrade will strengthen air defense integration. A significant tri-service order was also sanctioned for Medium-Altitude Long-Endurance (MALE) drones. In addition, the DAC awarded sustainment contracts to keep India’s strategic assets mission-ready, including the long-term maintenance of the C-17 and C-130J transport fleets, as well as the S-400 long-range air defense system. These support deals will ensure high readiness of critical platforms.

Almost all approved projects are under the “Make in India” Buy (Indian-IDDM) category. This means the domestic industry will produce or supply the equipment, enhancing defense self-reliance. The government aims to create jobs and strengthen the local defence industrial base by focusing on indigenous firms and technology.

The DAC’s ₹67,000 crore package is a significant boost to India’s defense as the upgrades in night-fighting gear, surveillance radars, drones and missile defenses will strengthen national security and rapid-response capability. The approvals both modernize India’s military and advance self-reliance. It’s a double win for force readiness and the country’s long-term strategic strength.