India Clears ₹2.12 Lakh Crore Defence Procurement Plan With 82% Made-in-India Focus

Defence Minister Rajnath Singh | File Photo

India has approved capital defence procurement proposals worth about ₹2.12 lakh crore, marking a major step in the country’s military modernisation programme. The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, granted in-principle approval to the proposals on October 26, 2026.

Around 82% of the approved procurement is expected to come from Indian industry, reinforcing the government’s Aatmanirbhar Bharat push in the defence sector.

What the Armed Forces Will Get

The package covers equipment for the Indian Army, Navy and Air Force. It includes high-mobility vehicles, artillery systems, helicopters, drones, air-defence systems, surveillance platforms and naval decoys.

For the Army, approvals include Light Multi-Role Helicopters, VSHORADS, counter-drone systems, surveillance UAVs, high-mobility vehicles and Long-Range Kamikaze Drone Systems. These systems are aimed at improving battlefield mobility, surveillance and response capability.

The Navy will receive the Active Offboard Decoy System and other major naval platforms, while the Air Force is set to benefit from helicopters, air-defence equipment and Mobile X-Band Doppler Weather Radar Systems.

Push for Self-Reliance

The large share of indigenous sourcing is expected to support Indian defence manufacturers, startups and research institutions. The move aligns with the government’s goal of reducing dependence on imported military hardware and strengthening domestic production capacity.

Defence Minister Rajnath Singh described the initiative as part of “Aatmanirbharta 2.0,” calling for the next stage of defence self-reliance. He stressed the need to connect startups and academia with real operational requirements of the armed forces.

Swavlamban 2026 Context

The announcement came alongside Swavlamban 2026, a naval innovation seminar focused on defence technology, startups and academia. The event, which continues through October 27, aims to encourage Indian innovators to develop solutions for the Navy and other armed forces.

The DAC approval is an important early stage in the procurement process. It grants Acceptance of Necessity (AoN), after which contracts, vendor selection and delivery timelines are finalised through separate procedures.

Why It Matters

The ₹2.12 lakh crore procurement plan is expected to enhance India’s combat readiness, surveillance ability, air-defence strength and naval protection. It also signals continued government support for domestic defence manufacturing at a time when modern militaries are increasingly relying on drones, precision weapons and advanced surveillance systems.

With 82% of the spending directed toward Indian industry, the approval could create fresh opportunities for public and private defence firms, while helping India build a more self-reliant military supply chain.

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