By Shubhangi Palve
India’s defence modernisation drive has entered a new, accelerated phase — one that blends long-term planning with operational urgency, and industrial strategy with national security imperatives.
On July 3, 2025, the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, approved 10 capital acquisition proposals worth a staggering ₹1.05 lakh crore. All projects fall under the ‘Buy (Indian) – Indigenously Designed, Developed, and Manufactured (IDDM)’ category — the highest level of indigenisation — signalling a decisive move to deepen India’s self-reliance in defence.
This momentum builds on an earlier round of approvals in March 2025, when the DAC cleared eight major proposals worth ₹54,000 crore. That session also marked a shift towards faster procurement processes, with new guidelines introduced to streamline acquisition timelines. Among the notable items cleared were the procurement of a 1,350-horsepower engine — intended to replace the existing 1,000-horsepower variant powering India’s fleet of T-90 tanks — and the Varunastra, an advanced, indigenously developed ship-launched anti-submarine torpedo designed to enhance the Navy’s underwater warfare capabilities.
Taken together, these back-to-back approvals underscore a clear strategic intent: to accelerate indigenization, modernize key platforms, and energize India’s defence industrial base for the long term.
What’s Being Acquired — & Why It Matters
The Ministry of Defence has rolled out a comprehensive set of approvals aimed at bolstering India’s defence preparedness across land, sea, and air. Among the key acquisitions greenlit are Armoured Recovery Vehicles, cutting-edge Electronic Warfare Systems, Surface-to-Air Missiles, and a unified Integrated Common Inventory Management System for the Army, Navy, and Air Force.
Collectively, these procurements are designed to sharpen the Armed Forces’ mobility, air defence posture, and logistics efficiency across operational theatres.
For the Navy, the DAC has also cleared a suite of maritime assets, including Moored Mines, Mine Counter Measure Vessels (MCMVs), Super Rapid Gun Mounts (SRGMs), and Submersible Autonomous Vessels — a potent cocktail of systems aimed at enhancing maritime security and safeguarding sea lanes against both conventional and asymmetric threats.
Let’s break down what each system brings to the table:
- Armoured Recovery Vehicles (ARVs) are the battlefield lifelines — essentially tanks or armoured personnel carriers modified for frontline vehicle rescue and repair. Built to withstand enemy fire, these rugged machines tow or fix disabled armoured vehicles like tanks or APCs directly in combat zones, ensuring that damaged platforms don’t become permanent losses during operations.
- Electronic Warfare Systems (EWS): form the invisible shield and spear of modern combat. These high-tech suites are designed to dominate the electromagnetic spectrum — sensing enemy signals, disrupting hostile radar and communications, and shielding friendly units from jamming and detection. EW capabilities are fast becoming the backbone of battlefield superiority, enabling forces to fight smarter and more securely.
- Integrated Common Inventory Management Systems represent a vital leap toward tri-service synergy. This digital backbone will allow the Army, Navy, and Air Force to coordinate logistics, manage assets, and track inventory on a single unified platform. The result? Faster deployments, fewer redundancies, lower costs — and above all, higher operational readiness.
- Surface-to-Air Missiles (SAMs) are a critical component of India’s air defence shield. These ground-launched interceptors can take down a range of aerial threats — from enemy aircraft and drones to cruise missiles — giving ground units and strategic locations a vital layer of protection in contested airspace.
For the Indian Navy, several long-overdue capabilities are finally coming online:
- Moored Mines: are underwater sentinels — anchored just below the sea surface, they silently patrol high-traffic areas to deter enemy vessels. Unlike bottom mines, moored variants are better suited for deep-water deployments and can serve as cost-effective area denial weapons, especially in chokepoints and critical maritime zones.
- Mine Counter Measure Vessels (MCMVs): These specialised warships are built not to lay mines, but to hunt and destroy them. Equipped with advanced sonar, unmanned systems, and mine-disposal tech, they combine both sweeping and hunting roles. The Indian Navy has had none since retiring its Soviet-era fleet after 30 years of service — a gap now set to close. Following the May 7–10 border flare-up with Pakistan, the government cleared a long-delayed ₹44,000 crore project for 12 MCMVs. After three failed attempts in 15 years, including collapsed talks with a South Korean firm, the vessels will finally be built in India — restoring a vital naval capability.
- Super Rapid Gun Mounts (SRGMs): offer a blisteringly fast line of defence against missiles, aircraft, and fast-moving boats. These naval guns are designed to react quickly, track targets accurately, and fire at high rates — making them essential for close-in defence on warships navigating through high-threat environments.
- Submersible Autonomous Vessels are a glimpse into the future of naval warfare. These unmanned underwater platforms can operate independently, utilizing sensors and AI to make real-time decisions as they patrol, surveil, or even conduct mine-clearing and reconnaissance missions — all without putting sailors at risk.
Together, these acquisitions paint a clear picture of India’s strategic trajectory: modernising its forces with cutting-edge technologies, closing long-standing capability gaps, and weaving together a robust, interoperable defence ecosystem rooted in indigenous innovation.
How India’s Defence Acquisition Works
Breaking down the intricacies of India’s defence procurement system, Rear Admiral Girish Kumar Garg (Retd.) explained that the Capital Acquisition Process follows a structured three-tiered pathway — each step ensuring accountability and strategic alignment.
It begins with the Classification Committee, which assesses the nature and urgency of the requirement. The proposal then moves up to the Defence Procurement Board, chaired by the Defence Secretary, for further scrutiny. Finally, it reaches the Defence Acquisition Council (DAC), headed by the Defence Minister, which gives the crucial Acceptance of Necessity (AoN) — the official green light that initiates the procurement process.
Once AoN is granted, the technical aspects take over. A Technical Evaluation Committee (TEC) reviews bids and submits its findings, followed by Field Evaluation Trials (FET), where shortlisted systems are rigorously tested under realistic conditions. Only those that pass these trials proceed to the commercial phase.
At this point, the Commercial Negotiation Committee (CNC) takes over — comparing financial bids and negotiating terms with the lowest eligible vendor. Cost, delivery timelines, and contractual conditions are finalized before the Defence Ministry gives its final nod, and the contract is signed.
Rear Admiral Garg noted that each stage requires separate approval from the Ministry of Defence, and the procurement timeline varies depending on the complexity of the platform. With simpler equipment moving faster, while larger, integrated systems can take years to implement.
All current acquisitions are being processed under the IDDM (Indigenously Designed, Developed, and Manufactured) category, which mandates a minimum of 50% indigenous content. “This ensures that design, development, and manufacturing all take place in India — a true push toward defence self-reliance,” Garg emphasised.
Major Boost for Indian Defence Industry
The recent wave of approvals by the Defence Acquisition Council has opened up a goldmine of opportunities for Indian manufacturers — from suppliers of raw materials to high-end system integrators. Industries across the defence value chain now have a clear runway to scale up production, invest in innovation, and develop next-gen technologies.
It’s a powerful push for Aatmanirbhar Bharat in defence. By prioritising indigenous design and development, the government is reinforcing its commitment to building a self-reliant military-industrial ecosystem — one that’s resilient, globally competitive, and future-ready.
The market responded swiftly. On July 4, defence stocks rallied sharply following the DAC’s ₹1.05 lakh crore capital acquisition nod. The clear thrust on Made-in-India equipment boosted investor sentiment. Shares of key players like Paras Defence, Garden Reach Shipbuilders (GRSE), Zen Technologies, Cochin Shipyard, Astra Microwave, Mazagon Dock, Bharat Dynamics (BDL), BEML, Data Patterns, HAL, BEL, Cyient DLM, and Solar Industries all saw significant gains — a clear signal that industry and markets alike see this as more than just a policy move.
Speeding Up After Conflict
When asked whether the government is accelerating defence acquisitions in the wake of recent hostilities with Pakistan, Rear Admiral Girish Kumar Garg (Retd.) responded candidly: “Yes. These are long-term procurements, but during Operation Sindhoor, the government empowered the military to make emergency purchases — a clear shift toward faster decision-making.”
That shift became official in March 2025, when the government granted Emergency Procurement (EP-6) powers to the armed forces, with an overall financial ceiling of ₹40,000 crore. Approved by the Defence Acquisition Council (DAC) under the leadership of Defence Minister Rajnath Singh, this move enabled the Army, Navy, and Air Force to bypass standard acquisition procedures and swiftly replenish their critical weapon stocks.
Under EP-6, services can sign multiple contracts — each up to ₹300 crore — under both capital and revenue budgets, without the delays typically associated with the traditional procurement route. Previous The first four rounds of emergency procurement were triggered during the military standoff with China in eastern Ladakh, while the fifth was for counter-terror operations.
Rear Admiral Garg highlighted a key outcome of this faster procurement approach: “When acquisition cycles move quickly, the capital defence budget is utilised — not left unspent. Over the past few years, the Ministry of Defence has maintained nearly 100% utilisation of its capital acquisition budget. That’s possible only because the process is more streamlined and efficient now.”
What’s equally important is where the money is going. With all recent procurements falling under the IDDM category, funds are flowing directly into India’s industrial ecosystem. This includes shipyards, MSMEs, private defence firms, and a growing network of defence-tech start-ups.
In particular, high-value areas like shipbuilding, with their high indigenous content, are generating strong economic multipliers — spurring capacity building, job creation, and technology development within the country. Many of these platforms and systems also have dual-use potential, meaning they can benefit both civilian and military sectors.
Rear Admiral Garg further noted that reduced dependence on foreign suppliers not only strengthens national security but also extends the product lifecycle.
“When systems are designed and maintained locally, lifecycle costs drop significantly, and we’re no longer at the mercy of overseas support. It’s smarter, more sustainable, and economically sound.”
In essence, what began as an operational necessity has now evolved into a long-term structural change — one that’s aligning India’s defence priorities with its industrial ambitions.
Shubhangi Palve is an independent Defence and Aerospace journalist with over 15 years of comprehensive media experience across print, electronic, and online platforms. She frequently contributes to IA&D and EurAsian Times.
