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Blog / 05 Jul 2025

Govt Clears ₹1.05 Lakh Crore Defence Acquisition Push to Boost Indigenous Capabilities

Context:

In a landmark move aimed at strengthening India’s self-reliance in defence manufacturing, the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, recently cleared capital acquisition proposals worth approximately ₹1.05 lakh crore.

Equipment to be procured under the proposal:

The proposals span across all three services – Army, Navy, and Air Force – and include both land and maritime systems. The following key equipment will be procured:

  • Armoured Recovery Vehicles (ARVs): Critical for armoured corps logistics and battlefield mobility.
  • Electronic Warfare Systems: Enhancing surveillance, electronic attack, and countermeasure capabilities.
  • Integrated Common Inventory Management System (ICIMS): A tri-services initiative to optimize logistics, inventory control, and resource management.
  • Surface-to-Air Missiles (SAMs): Bolstering air defence networks with quicker response and improved targeting.

India Clears ₹1.05L Cr Defence Buy to Boost Self-Reliance

Naval Modernisation & Maritime Security:

Recognizing emerging threats in the maritime domain, several key procurements have also been cleared to boost the Indian Navy’s capabilities:

  • Moored Mines: Essential for strategic denial and area control in coastal zones.
  • Mine Counter Measure Vessels (MCMVs): Specialized vessels for detecting and neutralizing naval mines.
  • Super Rapid Gun Mounts (SRGMs): Advanced naval guns for anti-air and anti-surface operations.
  • Submersible Autonomous Vessels: Unmanned systems capable of underwater surveillance and reconnaissance.

These acquisitions are particularly critical given the increasing geopolitical competition and challenges in the Indo-Pacific region.

 Other approved project in recent times:

This latest announcement comes on the heels of several major defence procurement clearances:

  • March 2025: The Cabinet Committee on Security approved India’s largest-ever helicopter deal — ₹62,700 crore for 156 Light Combat Helicopters (LCH), Prachand, developed by Hindustan Aeronautics Ltd. (HAL).
  • June 2025: The Defence Ministry moved forward with a ₹30,000 crore plan for three regiments of the indigenously developed Quick Reaction Surface-to-Air Missile (QR-SAM) system for the Indian Army.

Strategic Significance:

The Defence Ministry’s continued emphasis on domestic procurement carries multiple strategic benefits:

1.       Enhanced Self-Reliance: Reduces dependence on foreign suppliers and boosts national security.

2.     Industrial Growth: Provides a major impetus to Indian defence manufacturers, MSMEs, and start-ups involved in R&D and production.

3.     Technology Development: Encourages innovation and capacity building in defence electronics, weapons systems, and autonomous platforms.

4.     Employment Generation: Large-scale procurement and production translate to job creation and skill development across defence corridors.

 Conclusion:

India’s defence acquisitions in 2025 reflect a clear strategic trajectory — self-reliance, modernization, and regional power projection. As the government continues to back indigenous platforms like the Prachand LCH and QR-SAM, and now adds over ₹1 lakh crore worth of systems through Indian vendors, the coming years are likely to see India emerge as a significant global defence manufacturing power.