In a strategic move to foster indigenous defense manufacturing and to improve India’s self-reliance in defense production, the Defence Acquisition Council (DAC), chaired by Raksha Mantri Shri Rajnath Singh, approved 10 capital acquisition proposals valued at approximately ₹1.05 lakh crore on July 3, 2025. This is the second major acquisition by the DAC this year, following the eight capital acquisition proposals, worth over ₹54,000 crore, that it cleared back in March.
The recent proposals were sanctioned under the Buy (Indian – Indigenously Designed, Developed and Manufactured) [Buy (Indian-IDDM)] category, emphasizing the Government of India’s commitment to Aatmanirbhar Bharat in the defense sector.
The Acceptance of Necessity (AoN) was granted for an array of advanced platforms and systems across the Tri-Services, marking a significant step toward enhancing India’s military capabilities and bolstering operational readiness through indigenous innovation.
DAC Approves Key Capital Acquisitions to Enhance Military Capability
The DAC-approved acquisitions encompass a broad range of advanced defense systems aimed at improving strategic mobility, supply chain efficiency, and combat preparedness.
Among the critical procurements are:
- Armoured Recovery Vehicles (ARVs): These are designed to provide recovery and repair support to combat vehicles in high-intensity conflict zones. These ARVs will enhance battlefield sustainability for armored formations.
- Electronic Warfare (EW) Systems: These cutting-edge EW systems will empower the Indian Armed Forces with superior signal intelligence (SIGINT) and electronic countermeasure capabilities, essential in modern hybrid warfare.
- Integrated Common Inventory Management System (ICIMS): This is a tri-services solution. The ICIMS is set to revolutionize logistics and supply chain management by enabling real-time tracking and coordination across the Indian Army, Indian Navy, and Indian Air Force.
- Surface-to-Air Missiles (SAMs): The inclusion of domestically developed SAM systems will significantly strengthen India’s layered air defense architecture, enabling prompt interception of aerial threats, including unmanned aerial vehicles (UAVs), fighter aircraft, and cruise missiles.
DAC Addresses Naval Acquisitions to Mitigate Maritime Threats
Addressing critical maritime security requirements, the DAC also approved AoNs for the procurement of systems that will augment the Indian Navy’s undersea and surface warfare capabilities, such as:
- Moored Mines: These sea mines will serve as a deterrent to hostile naval movement in strategic littoral zones and critical chokepoints.
- Mine Counter Measure Vessels (MCMVs): Essential for naval mine-hunting operations, MCMVs will safeguard both military and merchant shipping from underwater explosive threats.
- Super Rapid Gun Mounts (SRGMs): With a high rate of fire and effective targeting systems, SRGMs will be installed on frontline naval vessels, enhancing gunnery effectiveness during multi-domain operations.
- Submersible Autonomous Vessels (SAVs): These unmanned platforms are designed for surveillance, reconnaissance, and underwater mapping. Their inclusion will strengthen India’s maritime domain awareness (MDA) and enhance its anti-submarine warfare (ASW) capabilities.
Reinforcing Indigenous Design and Defence Innovation Under Aatmanirbhar Bharat
All approvals by the DAC, under the Buy (Indian-IDDM) category, serve the dual purpose of equipping the armed forces with modern equipment while driving India’s indigenous defense research and development (R&D) ecosystem, as per the Aatmanirbhar Bharat initiative. Furthermore, the emphasis on local sourcing aligns with the broader objectives of the Defence Production and Export Promotion Policy (DPEPP) 2020, which seeks to transform India into a global defense manufacturing hub.
As such, these acquisitions are expected to generate significant employment and stimulate growth in the Micro, Small & Medium Enterprises (MSMEs) sector involved in the defense supply chain.
Increase in Defense Acquisitions By The DAC
In recent years, the nation has seen a rise in defense acquisitions, especially after the formation of the DAC. Just last year, the council had cleared major projects such as:
- A major defense procurement for the Indian Army and Coast Guard in July 2024.
- The ₹1.44 Lakh Crore Defence Modernization Proposals as per the Aatmanirbhar Bharat initiative, back in September 2024.
- And 5 capital acquisition proposals worth ₹21,772 crores in December.
This shows the significance of DAC and how it is dedicated towards the modernization of the Indian armed forces while aligned with government initiatives like Make in India Defense and Aatmanirbhar Bharat.
Greater Strategic Impact on The Operational Readiness Of The Indian Armed Forces
With the current geopolitical climate necessitating a high state of operational preparedness, these procurements represent a decisive move towards closing capability gaps across domains—land, air, and sea. The systems selected will:
- Enhance the force projection and survivability of Indian troops.
- Provide integrated, real-time logistics and inventory management.
- Improve defensive posturing in maritime theaters, especially in the Indian Ocean Region (IOR).
- Reduce long-term dependence on foreign Original Equipment Manufacturers (OEMs).
By capitalizing on indigenous design, development, and manufacturing, the Ministry of Defence is not only increasing the readiness of the armed forces but also reinforcing the country’s strategic autonomy in defense production.
What Does The Capital Acquisition Under The Indian-IDDM Mean?
The DAC’s approval of capital acquisition proposals worth ₹1.05 lakh crore under the Buy (Indian-IDDM) framework reflects a deliberate policy shift toward self-sufficiency, technological innovation, and defense modernization.
As India navigates evolving regional and global security dynamics, these procurements will serve as critical enablers of mission success and strategic deterrence.
