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India Eyes ₹1 Lakh Crore Defence Modernisation with Major DAC Meeting on 3 July

The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, is set to review defence procurement proposals worth over ₹1 lakh crore. The proposals include artillery guns, air defence systems, drones, torpedoes, and other advanced military equipment to strengthen India's armed forces.
Defence reforms 2026
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New Delhi: The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, is expected to consider proposals worth more than ₹1 lakh crore on July 3. The proposed purchases aim to strengthen the Indian Army, Navy, and Air Force while giving priority to indigenous defence manufacturing under the government’s Aatmanirbhar Bharat initiative.

What is the Defence Acquisition Council (DAC)

The Defence Acquisition Council (DAC) is the highest decision-making body for defence procurement under the Ministry of Defence. It approves major defence purchases by granting Acceptance of Necessity (AoN), which is the first official step before the procurement process begins.

Read also: Explained: How the 120-km Pinaka LRGR-120 Rocket Strengthens India’s Precision Strike and Border Defence

Details of ₹1 Lakh Crore Defence Proposals

According to sources in the Ministry of Defence, the DAC will review proposals exceeding ₹1 lakh crore. The meeting is expected to be one of the most important defence procurement meetings in recent years.

The proposals are focused on improving the operational readiness of all three armed forces while encouraging greater use of equipment manufactured in India.

Indian Army Likely to Get Major Upgrades

A large share of the proposed acquisitions is meant for the Indian Army. The key proposals include:

  • Additional K-9 Vajra self-propelled artillery guns.
  • Loitering (kamikaze) munitions for precision strikes.
  • Verba Man-Portable Air Defence Systems (MANPADS).
  • More air defence guns.
  • Active Protection Systems (APS) to protect tanks from missiles and rocket attacks.

These systems are expected to improve India’s defence preparedness, especially along sensitive border areas.

Indian Navy May Receive Advanced Maritime Systems

The Indian Navy is also expected to receive approval for several modern platforms. These include:

  • Next-generation heavyweight torpedoes.
  • Unmanned Surface Vessels (USVs).
  • Autonomous Underwater Vehicles (AUVs).
  • Advanced sonar systems.
  • Electronic warfare equipment.

These capabilities will strengthen underwater surveillance, anti-submarine warfare, and maritime security.

₹1 Lakh Crore Defence Proposals: Focus on Indigenous Defence Manufacturing

An important feature of the proposed acquisitions is the emphasis on buying equipment developed and manufactured in India wherever possible. This approach supports the government’s goal of making India more self-reliant in defence production while reducing dependence on imports.

Why This Meeting Is Important

If the proposals receive Acceptance of Necessity (AoN), the Ministry of Defence can begin the formal procurement process. The approvals are expected to significantly improve the combat capabilities of India’s armed forces and support long-term military modernisation.

Read also: ‘Anant Shastra’: Indian Army Issues ₹30,000 Cr Tender for DRDO’s Next-Gen Air Defence System to Guard Pakistan-China Borders


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