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Centre Clears Defence Procurement Proposals Worth Rs 2.12 Lakh Crore, 82% Sourced from Indian Industry

The Centre on Monday approved capital acquisition proposals worth about Rs 2.12 lakh crore for the armed forces, with nearly 82 per cent of the procurement value expected to come from Indian industry.

Written by

Anupam Pandey

Published

26 October 2026

Reading time

4 min read

Centre Clears Defence Procurement Proposals Worth Rs 2.12 Lakh Crore, 82% Sourced from Indian Industry
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The Centre on Monday approved capital acquisition proposals worth about Rs 2.12 lakh crore for the armed forces, with nearly 82 per cent of the procurement value expected to come from Indian industry.

The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, granted Acceptance of Necessity (AoN) to a range of proposals for the Indian Army, Navy and Air Force. The AoN represents in-principle approval for the proposed acquisitions.

According to the Defence Ministry, the procurements are intended to strengthen operational mobility, surveillance, air defence and combat capabilities across the three services.

Indian Army to Receive Mobility, Surveillance and Drone Systems

The DAC approved a broad range of equipment for the Indian Army, including high-mobility vehicles, self-propelled tracked gun systems, gunshot response systems, light multi-role helicopters and very short-range air defence systems.

The approvals also cover platform-based counter-unmanned aerial systems (C-UAS), long-range unmanned aerial systems, surveillance unmanned aerial vehicles (UAVs), integrated surveillance and strike systems, and long-range kamikaze drone systems.

The ministry said high-mobility vehicles would improve logistics and operational movement in difficult terrain, while self-propelled tracked gun systems would provide mechanised formations with a combination of mobility and firepower.

Gunshot response systems are expected to improve real-time situational awareness, helping forces identify and respond to threats more effectively.

The proposed very short-range air defence systems will address emerging threats from small aerial platforms, while counter-drone systems are intended to improve the survivability of tanks on modern battlefields. The surveillance and drone platforms are expected to strengthen reconnaissance and targeting capabilities.

Light multi-role helicopters will serve both the Army and the Indian Air Force, supporting reconnaissance, surveillance, combat operations, search and rescue, and humanitarian assistance and disaster relief.

Navy to Strengthen Anti-Missile Defence

For the Indian Navy, the council approved the procurement of an Active Offboard Decoy System (AODS) and other major naval platforms.

The AODS is intended to strengthen the effectiveness of the Navy’s anti-missile defence, particularly against modern anti-ship missiles.

The Defence Ministry said indigenously designed and constructed naval platforms would incorporate modern warfare capabilities and enhance the Navy’s overall combat strength.

Air Force to Acquire Helicopters and Air Defence Equipment

The Indian Air Force received approval for the procurement of helicopters, air defence systems, weapons and a mobile X-Band Doppler weather radar system.

The proposed acquisitions are aimed at strengthening the force’s air defence and warfighting capabilities.

Special utility helicopters are expected to help meet the Air Force’s air transport requirements, while the mobile X-Band Doppler radar system will provide high-resolution, localised weather surveillance in forward areas.

The approvals form part of the government’s broader effort to modernise the armed forces, with the substantial share earmarked for Indian industry highlighting the emphasis on domestic defence manufacturing.

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Anupam Pandey

Reporting and storytelling across theBusiness vertical for 4thWall Network.