India's DAC clears ₹2.12 lakh crore defence buys, 82% from Indian industry
India's Defence Acquisition Council, chaired by Rajnath Singh, approved about ₹2.12 lakh crore of weapons proposals for the army, navy and air force, including kamikaze drones, air defence and helicopters.
At a glance
- India's Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, approved capital acquisition proposals worth about ₹2.12 lakh crore (roughly $24 billion) on Monday, October 26, 2026.
- About 82% of the value is to be sourced from Indian industry.
- The army gets self-propelled tracked guns, light multi-role helicopters, very short-range air defence, counter-drone systems, surveillance drones and long-range kamikaze drones.
- The navy gets active offboard decoy systems against anti-ship missiles and other major platforms; the air force gets helicopters, air defence systems, weapons and mobile weather radars.
- These are Acceptance of Necessity (AoN) approvals — in-principle clearances, not final contracts.
India's Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, on Monday, October 26, 2026, approved capital acquisition proposals worth about ₹2.12 lakh crore (roughly $24 billion) for the Indian Army, Navy and Air Force. About 82% of the value is to be sourced from Indian companies, and the list is dominated by drones, counter-drone and air-defence systems.
The approvals are "Acceptance of Necessity" (AoN) decisions: in-principle clearances that let the defence ministry start buying, while contracts, suppliers, prices and delivery schedules will be fixed in later stages.
What was approved
The defence ministry gave categories of equipment rather than quantities or individual costs.
| Service | Main items approved |
|---|---|
| Indian Army | Self-propelled tracked gun systems; high-mobility vehicles; light multi-role helicopters; very short-range air defence systems (VSHORADS); counter-drone equipment; surveillance UAVs; integrated surveillance and strike systems; long-range kamikaze (loitering) drones |
| Indian Navy | Active Offboard Decoy Systems (AODS) to protect ships from modern anti-ship missiles; other major naval platforms |
| Indian Air Force | Helicopters; air defence systems; weapons; mobile X-band Doppler weather radars |
| Total | About ₹2.12 lakh crore; ~82% from Indian industry |
Separately on Monday, Singh called for a second phase of self-reliance in defence production — "Aatmanirbharta 2.0" — pushing Indian firms to develop key technologies at home rather than assemble foreign designs.
Background
The DAC is the ministry's top body for approving weapons purchases. It has been clearing large packages every few months: in March 2026 it approved proposals worth about ₹2.38 lakh crore. The government has steadily raised the share of equipment reserved for domestic suppliers, with lists of items that can no longer be imported.
The heavy focus on drones, loitering munitions and air defence reflects lessons from recent conflicts, including the India–Pakistan clashes of May 2025, the war in Ukraine and the current fighting in the Middle East, where cheap drones and missiles have been used on a large scale against military targets, cities and infrastructure.
Why it matters
- For India's industry: with more than four-fifths of the value going to Indian firms, the decision is a major boost for state-owned companies such as Hindustan Aeronautics and Bharat Electronics and for private drone and defence makers.
- For the armed forces: counter-drone and short-range air-defence systems address one of the forces' most urgent gaps along both the western and northern borders.
- For the region: large Indian arms approvals are closely watched in Pakistan and China. Pakistan has been expanding its own drone, missile and air-defence capabilities, and each side cites the other's buying as a reason for more spending, adding to an arms race in South Asia.
What happens next
The services will now issue requests for proposals and run trials and price negotiations. Contracts typically follow months or years after an AoN, and some items may be cut or changed along the way. The government has not given a timeline for when the first contracts from this package will be signed.
Questions people are asking
What did India's Defence Acquisition Council approve on October 26, 2026?
The DAC approved capital acquisition proposals worth about ₹2.12 lakh crore for the army, navy and air force, including kamikaze and surveillance drones, air defence systems, helicopters, tracked guns and naval decoy systems, with about 82% to come from Indian industry.
What is Acceptance of Necessity (AoN) in Indian defence procurement?
AoN is the first formal approval in India's defence buying process: it confirms the armed forces need the equipment and allows the ministry to start tenders. Contracts, suppliers, prices and delivery dates are settled in later stages.
How much is ₹2.12 lakh crore in dollars?
₹2.12 lakh crore equals ₹2.12 trillion, or roughly $24 billion at current exchange rates.
