₹1.10 Lakh Crore Defence Procurement: The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, approved capital acquisition proposals worth approximately ₹1.10 lakh crore on 7 September 2026. The decision covers the Indian Army, Indian Navy and Indian Air Force. Around 98% of these procurements will come from Indian industry. The approvals focus on defence modernisation, operational readiness, indigenous manufacturing and reduced dependence on foreign suppliers.
What is ₹1.10 Lakh Crore Defence Procurement?
The ₹1.10 Lakh Crore Defence Procurement package received Acceptance of Necessity (AoN), marking in principle administrative approval for major military acquisitions.
- Domestic procurement: Around 98% of the approved procurement value is earmarked for Indian industry, supporting indigenous defence manufacturing and technological self reliance.
- AoN significance: Acceptance of Necessity is an important stage in capital acquisition. It confirms the requirement before subsequent tendering, evaluation, negotiations and contract execution.
- Three services: The proposals cover equipment and systems for the Army, Navy and Air Force, strengthening capabilities across land, maritime and aerial operations.
Defence Systems Approved in ₹1.10 Lakh Crore Procurement
The ₹1.10 Lakh Crore Defence Procurement includes mobility, surveillance, electronic warfare, mine warfare and specialised military systems.
- CBRN Recce Vehicles: These vehicles will detect, identify, monitor and mark areas contaminated by Chemical, Biological, Radiological and Nuclear agents, improving operational safety.
- High Mobility Vehicles: HMVs will strengthen logistics, troop movement and operational mobility, particularly in challenging and difficult terrains.
- Mechanical Mine Layers: Self Propelled Mechanical Mine Layers will enable rapid minelaying in difficult terrain and support defensive as well as offensive military operations.
- Advanced Light Helicopters: ALHs will undertake complex missions across different terrains and operational conditions for both the Indian Army and Indian Air Force.
- Arudhra Radars: The Indian Navy will procure Arudhra radars to replace existing Air Route Surveillance Radars at various Naval Air Stations.
- Marine Gas Turbines: The Navy will pursue design, development and procurement of Marine Gas Turbines, reducing dependence on foreign vendors for warship propulsion systems.
- Ground Based Multi Purpose Jammer: GBMPJ will provide electronic warfare capability by jamming adversarial radar systems and strengthening battlefield countermeasures.
- DEFSAC System: The Defence Forces Secure Access Card system will replace paper based identity arrangements with interoperable RFID based smart cards for secure authentication.
- Trawl Tanks and Sarvatra Bridge: These systems will support composite crossings for fighting formations operating across varied terrains and improve battlefield mobility.
Defence Acquisition Process and Indigenisation
The ₹1.10 Lakh Crore Defence Procurement reflects the growing preference for indigenous acquisition under India’s defence modernisation framework.
- DAC role: The Defence Acquisition Council is the apex body for capital defence acquisitions and is chaired by the Union Minister of Defence.
- Procurement stages: The acquisition process moves through requirement identification, AoN, Request for Proposal, technical and commercial evaluation, contract negotiation and contract execution.
- Indian industry: The high domestic procurement share creates opportunities for Defence PSUs, private companies, MSMEs and start ups involved in defence manufacturing.
- Self reliance: Indigenous procurement supports the broader Atmanirbhar Bharat objective by reducing import dependence and strengthening domestic defence capabilities.
Significance of ₹1.10 Lakh Crore Defence Procurement
The ₹1.10 Lakh Crore Defence Procurement has strategic, operational and industrial significance for India’s defence preparedness and long term military modernisation.
- Strategic autonomy: Indigenous systems can reduce dependence on foreign vendors, particularly in critical areas such as naval propulsion and specialised military equipment.
- Operational readiness: CBRN vehicles, HMVs, helicopters, mine layers, bridges and electronic warfare systems address diverse operational requirements across different environments.
- Defence industry: Orders of this scale can encourage domestic manufacturing, research and development, skilled employment and expansion of defence supply chains.
- Inter service capability: Equipment for all three services can support greater standardisation, interoperability and coordination during joint operations.
₹1.10 Lakh Crore Defence Procurement Challenges
The ₹1.10 Lakh Crore Defence Procurement also requires timely production, technology absorption, quality control and effective integration with existing military systems.
- Technology gaps: Critical technologies such as marine gas turbines and advanced radar systems require sustained domestic research, development and technology absorption.
- Manufacturing capacity: Indian industry needs adequate infrastructure, skilled manpower and reliable supply chains to meet large defence orders within required timelines.
- System integration: New platforms must work effectively with existing equipment, requiring compatible interfaces, testing and necessary retrofitting.
- Implementation: Timely funding, transparent procurement, field trials and post deployment assessment are essential to convert approved requirements into effective military capability.
- R&D collaboration: Greater cooperation among DRDO, academic institutions, public sector units and private industry can strengthen indigenous development of advanced defence technologies.
Last updated on Sep, 2026
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₹1.10 Lakh Crore Defence Procurement FAQs
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