The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, on Monday, 26 October 2026, accorded Acceptance of Necessity (AoN) for capital acquisition proposals worth ₹2,12,000 crore for the Indian Army, Indian Navy, and Indian Air Force. Crucially, nearly 82 per cent of the total procurement value will be sourced from Indian industry, marking a significant push for domestic defence manufacturing self-reliance.

What the Indian Army Gets

The Army's approved acquisitions span a wide range of platforms and systems. These include high mobility vehicles (HMV), self-propelled tracked gun systems, gun shot response systems (GSRS), light multi-role helicopters (LMRH), very short-range air defence systems (VSHORADS), platform-based counter unmanned aerial systems (C-UAS), unmanned aerial system brick long range, surveillance UAVs, an integrated surveillance and strike system, and a long-range kamikaze drone system.

According to the official ministry statement, the HMVs will 'enhance operational capabilities, logistic support and mobility in challenging terrains,' while the self-propelled tracked gun system will 'provide matching mobility and firepower to mechanised formations.' The GSRS will act as a 'force multiplier, providing real-time situational awareness of the forces.' The VSHORADS is designed to engage new-generation small-size aerial threats, while C-UAS will enhance tank survivability on the modern battlefield.

Naval and Air Force Approvals

For the Indian Navy, the DAC approved the procurement of an Active Offboard Decoy System (AODS) and other major naval platforms. The AODS is intended to strengthen anti-missile defence, particularly against modern anti-ship missiles deployed by adversaries. The indigenously designed and constructed naval platforms will, according to the ministry, 'possess modern-day warfare capabilities and enhance the combat capability of the Navy.'

For the Indian Air Force (IAF), approvals cover helicopters, air defence systems, weapons, and a mobile X-Band Doppler weather radar system. Special utility helicopters will address critical air transport requirements, while the X-Band radar will provide high-resolution, localised weather surveillance in forward operational areas.

The Atmanirbhar Bharat Defence Push

The 82 per cent domestic sourcing commitment is consistent with the Centre's broader Atmanirbhar Bharat policy framework, which has progressively mandated higher indigenous content in defence procurement. This comes amid an accelerating global arms race and heightened regional security concerns, with India having significantly raised its defence capital expenditure over recent years. Notably, the LMRH will serve both the Army and the Air Force, fulfilling roles ranging from reconnaissance and combat to humanitarian assistance and disaster relief operations.

What Happens Next

AoN approval is the first formal step in India's defence acquisition process — it clears the administrative path for detailed tendering, vendor qualification, and contract negotiations, which can take several years to conclude. Industry bodies representing Indian defence manufacturers are expected to respond positively, given the scale of the domestic procurement mandate. The full contract pipeline emerging from this round will be closely tracked by both public-sector undertakings and private defence players seeking a share of the ₹2.12 lakh crore outlay.