Defence Acquisition Council Clears ₹2.12 Lakh Crore Procurement Package for Modernisation

The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, has granted in-principle administrative approval for a major defence procurement package valued at ₹2.12 lakh crore. The package is aimed at driving the modernisation of India's armed forces and includes Self-Propelled Tracked Gun Systems, helicopters, different classes of drones, counter-drone systems, and Active Offboard Decoy Systems for ships.

According to the Ministry of Defence, approximately 82 percent of the total approved procurements will be sourced from domestic Indian industry. The package covers multiple operational requirements for the Indian Army, Indian Navy, and the Indian Air Force.

For the Indian Army, the approved proposals include High Mobility Vehicles (HMV) to enhance logistics and mobility in challenging terrains, and Self-Propelled Tracked Gun Systems to provide firepower to mechanized formations. The council also cleared the Gun Shot Response System (GSRS), an automated tactical technology designed to instantly detect, locate, and analyze hostile gunfire to provide real-time situational awareness.

The DAC additionally approved the procurement of Light Multi Role Helicopters (LMRH) for reconnaissance, surveillance, combat, search and rescue, and disaster relief operations by both the Army and the Air Force. To upgrade air defense capabilities, the Army will acquire the Very Short-Range Air Defence System (VSHORADS)—a fourth-generation, man-portable air-defense system designed to replace aging legacy systems and engage small-scale aerial threats.

Other additions for the Army include Platform Based Counter Unmanned Aerial System (C-UAS) to protect tanks on the modern battlefield, alongside Unmanned Aerial System Brick Long Range, Surveillance UAVs, Integrated Surveillance and Strike Systems, and Long Range Kamikaze Drone Systems.

For the Indian Navy, the DAC cleared the acquisition of the Active Offboard Decoy System (AODS) to create false targets and enhance anti-missile defense against modern anti-ship missiles. Approval was also granted for indigenously designed and constructed major naval platforms equipped with modern-day warfare capabilities.

Meanwhile, the Indian Air Force received clearance to procure Special Utility Helicopters to meet air transport needs, additional air defense systems, weapons, and Mobile X-Band Doppler Weather Radar Systems to deliver high-resolution weather surveillance in forward areas.

"A domestic procurement push of this scale—where roughly 82 percent of a ₹2.12 lakh crore package is sourced from Indian industry—creates massive long-term business opportunities for domestic manufacturers, MSMEs, and technology startups operating in the defence sector. This policy direction encourages private sector participation in high-tech manufacturing, ranging from unmanned aerial systems to advanced communication and radar technologies, ultimately building a self-reliant industrial ecosystem." — Dr. Shishir Gupta, Founder & CEO, StartupLanes