India Bolsters Indigenous Defence with $12.5 Billion Acquisition Push

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T-90 MBT.

T-90 MBT.

Defence Acquisition Council Approves Defence Procurement worth Rs 1.05 Lakh Crore ($12.5 Billion): New Delhi, India – July 3, 2025 – In a significant stride towards bolstering self-reliance in defence manufacturing, India’s Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, today greenlit ten pivotal capital acquisition proposals valued at approximately Rs 1.05 lakh crore (over $12.5 billion USD). The approvals, all falling under the ‘Buy (Indian-Indigenously Designed Developed and Manufactured)’ category, underscore the nation’s unwavering commitment to strengthening its armed forces through domestic innovation and production.

The massive procurement drive is set to inject critical capabilities across all three services – Army, Navy, and Air Force – enhancing their operational preparedness, mobility, air defense, and logistical efficiency. This move is a clear signal of India’s strategic intent to reduce dependence on foreign military hardware and foster a robust indigenous defense industrial base.

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Key Systems Approved: A Deep Dive into India’s Future Defense

Among the approved proposals are several high-impact weapon systems and critical support infrastructure, each designed to address specific operational gaps and fortify India’s security posture:

Armoured Recovery Vehicles (ARVs): These specialized vehicles are the backbone of battlefield mobility and sustainment. Their acquisition will ensure the rapid recovery and repair of disabled tanks, armored personnel carriers, and other heavy equipment in combat zones, minimizing losses and maintaining the momentum of offensive and defensive operations. The indigenous development of ARVs signifies a crucial step in ensuring the Indian Army’s self-sufficiency in maintaining its formidable armored fleet.

Electronic Warfare System (EWS): In modern warfare, control of the electromagnetic spectrum is paramount. The new Electronic Warfare System will equip the armed forces with advanced capabilities to detect, intercept, and jam enemy communications, radar, and navigation systems. This critical asset will provide a significant tactical advantage, disrupting adversary operations while protecting friendly forces from electronic threats. Its indigenous development emphasizes India’s growing prowess in high-tech defense solutions.

Integrated Common Inventory Management System for the Tri-Services: A game-changer for logistics and supply chain management, this unified system will streamline the inventory of spares, ammunition, and other critical supplies across the Army, Navy, and Air Force. By providing a common platform for tracking and managing resources, it will eliminate redundancies, optimize stock levels, and ensure timely availability of necessary equipment, significantly enhancing the efficiency and responsiveness of the entire defense establishment. This move is expected to yield substantial cost savings and improve inter-service synergy.

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Akash Missile

Akash missile.

Surface-to-Air Missiles (SAMs): Crucial for layered air defense, the procurement of new SAM systems will provide enhanced protection against aerial threats, ranging from enemy aircraft and helicopters to drones and cruise missiles. These systems are vital for safeguarding strategic assets, critical infrastructure, and ground forces from airborne attacks, thereby augmenting India’s overall air defense umbrella. The focus on indigenous SAMs highlights India’s ambition to become a net security provider in the region.

Moored Mines: For naval defense, the acquisition of moored mines will provide a critical capability for area denial and coastal protection. These underwater explosive devices can be strategically deployed to deter enemy naval vessels from entering specific maritime zones, safeguarding vital shipping lanes, ports, and naval bases. This procurement strengthens the Indian Navy’s ability to control its maritime domain and mitigate potential threats.

Mine Counter Measure Vessels (MCMVs): Complementing the offensive mine capabilities, the new MCMVs are essential for ensuring the safety of naval and merchant shipping. These specialized vessels are designed to detect, classify, and neutralize various types of naval mines, clearing safe passages for maritime traffic. Their induction is vital for maintaining freedom of navigation and protecting India’s extensive coastline and economic interests at sea.

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Super Rapid Gun Mount (SRGM): A versatile and powerful naval weapon system, the SRGM provides ships with rapid-fire capabilities against both surface and aerial targets. Its precision and high rate of fire make it an indispensable asset for anti-ship warfare, anti-aircraft defense, and naval gunfire support. The indigenous production of these gun mounts further solidifies India’s capabilities in naval armament.

Submersible Autonomous Vessels (SAVs): Representing the cutting edge of naval technology, the procurement of Submersible Autonomous Vessels signals India’s foray into advanced unmanned underwater systems. These SAVs can be deployed for a range of missions, including intelligence gathering, surveillance, reconnaissance, mine detection, and potentially even underwater combat. Their autonomous nature reduces human risk and expands the reach of naval operations, positioning India at the forefront of future naval warfare.

Indian Navy's Scorpene Class Submarine.

Indian Navy’s Scorpene Class Submarine.

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A Vision for ‘Atmanirbhar Bharat’ in Defense

The decision to procure these systems under the ‘Buy (Indian-IDDM)’ category is a cornerstone of the ‘Atmanirbhar Bharat’ (Self-Reliant India) initiative in the defense sector. It mandates that equipment must be indigenously designed, developed, and manufactured, with a minimum of 50% indigenous content. This policy not only boosts domestic manufacturing capabilities but also fosters a vibrant ecosystem of research, development, and innovation within India.

“This massive push for indigenous procurement is not just about acquiring hardware; it’s about building a stronger, more resilient India,” stated a senior defense analyst, who requested anonymity due to the sensitivity of the subject. “By investing in our own capabilities, we are creating jobs, fostering technological advancements, and ensuring that our armed forces are equipped with tailor-made solutions that meet our unique strategic requirements. It’s a clear message to the world that India is serious about its defense self-reliance.”

The approvals are expected to provide a significant impetus to the Indian defense industry, including both public sector undertakings and private players, encouraging further investment in R&D and manufacturing infrastructure. As geopolitical landscapes continue to evolve, India’s commitment to indigenous defense production is poised to play a crucial role in safeguarding its national interests and projecting its strategic autonomy on the global stage.

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