India's Defence Acquisition Council (DAC) has approved capital acquisition proposals worth approximately ₹2.12 lakh crore for its armed forces. A significant 82% of this massive procurement is earmarked for domestic industries, boosting 'Make in India' in defence.
₹2.12 lakh crore
Total Value of Proposals
⏳ Time Machine
How today’s news fits into the bigger picture
2014
Launch of 'Make in India' Initiative
The 'Make in India' program was launched to encourage domestic manufacturing, including in the defence sector, aiming to reduce import dependence and boost local production. This set the stage for increasing indigenous content in procurement.
August 2020
First Positive Indigenisation List Announced
The Ministry of Defence released the first 'Positive Indigenisation List', identifying 101 items that would be progressively banned from import, compelling defence public sector undertakings (DPSUs) and private firms to indigenise production.
December 2021
Second Indigenisation List Issued
A second list of 108 items was released, expanding the scope of defence equipment that would be exclusively procured from domestic sources, further solidifying the commitment to self-reliance.
April 2022
Defence Budget Allocates 68% for Domestic Capital Procurement
For the first time, the government earmarked 68% of its capital procurement budget for domestic defence purchases, demonstrating a concrete financial commitment to indigenisation.
February 2023
Third Indigenisation List and Increased Budget Allocation
A third list of 101 items was unveiled, and the defence budget further increased the domestic capital procurement share to 75% for FY24.
Today
The Defence Acquisition Council (DAC) approves ₹2.12 lakh crore in defence procurements, with 82% slated for Indian industries.
What happens next?
Indian defence contractors will engage in detailed negotiations and trials to finalise contracts for the approved equipment, with deliveries expected over the coming years.
The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, on Monday gave 'Acceptance of Necessity' (AoN) for proposals valued at about **₹2.12 lakh crore**. This strategic move aims to modernise the Indian Army, Navy, and Air Force with a range of new equipment. Crucially, around **82%** of these procurements will be sourced from Indian manufacturers, marking a strong push towards self-reliance in the defence sector. The approved list includes advanced High Mobility Vehicles, Self-Propelled Tracked Gun Systems, Light Multi Role Helicopters, various surveillance and strike drone systems, air defence systems, and naval platforms. This domestic focus is expected to create jobs, foster indigenous technological development, and reduce reliance on foreign suppliers for critical military hardware.
💭 If you're wondering…
AoN is the first formal stage in India's defence procurement process, signifying the Defence Ministry's in-principle approval that a certain military capability or equipment is required. It kicks off the detailed acquisition procedures.
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