India has cleared defence procurements worth ₹1.05 lakh crore, equivalent to around $12.3 billion. This massive approval covers ten major acquisition proposals that were greenlit by the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh.
It marks one of the largest procurement cycles in recent Indian defence history, aimed at significantly upgrading military capabilities across all three forces: Army, Navy, and Air Force.
Trigger for the procurement
The timing of this approval is closely linked to the military escalation that unfolded on May 7, 2025. In what became the most intense India-Pakistan clash in 50 years, both sides exchanged drone and missile strikes, artillery barrages, and small-arms fire.
India squarely blamed Pakistan for orchestrating the pahalgam attack, though Islamabad denied any involvement. Against this backdrop, the procurement spree is being seen as a firm response and a strategic recalibration of India’s defence readiness.
What is India buying?
The approved purchases span a diverse mix of land and naval systems, all tailored to improve both frontline strength and backend coordination.
Key acquisitions include armoured recovery vehicles for battlefield logistics, surface-to-air missile systems to enhance air defence, and advanced electronic warfare systems designed to counter emerging threats.
The DAC also approved the development of a tri-services Integrated Common Inventory Management System that would streamline logistics across the Army, Navy, and Air Force.
For the Navy, the list features moored mines for area denial, mine countermeasure vessels for underwater threat mitigation, submersible autonomous vehicles, essentially underwater drones and super rapid gun mounts to reinforce ship-based weaponry.
While the Defence Ministry hasn’t disclosed contract winners yet, many of these platforms are likely to come from leading domestic players. HAL, for instance, manufactures the Light Combat Helicopter and Su-30MKI fighter jets; both part of India’s broader air power strategy.
Bharat Forge has played a central role in developing advanced towed artillery guns, while L&T remains a dominant force in naval systems and mobile artillery infrastructure.
Systems like the Nag missile and Varunastra torpedo, developed by Bharat Dynamics, are also seeing increased deployment; and potential export traction. These procurements not only reflect what India is buying, but also who’s increasingly capable of building it.
Indigenisation mandate
Every system and platform approved under this procurement drive must be designed, developed, and manufactured entirely within India.
The deals fall under the Buy (Indian – IDDM) category, which mandates that procurement be based on Indian-designed, developed, and manufactured platforms.
This directive is a deliberate step under the Make in India in Defence framework, aimed at reducing India's dependency on global arms imports while cultivating homegrown innovation and supply resilience.
Strategic goals behind indigenisation
The primary objective is to reduce India's overreliance on foreign defence suppliers.
According to SIPRI, India is currently the world’s second-largest arms importer. By shifting the procurement strategy toward indigenous production, the government aims to bolster domestic R&D, enhance manufacturing capacity, and shorten critical supply chains.
This move is also expected to open up more opportunities for leading Indian defence companies, while expanding the role of over 16,000 MSMEs already engaged in defence manufacturing.
Recent defence industry growth
India’s indigenous defence production ecosystem is showing strong momentum.
In FY24–25, local defence production reached an all-time high of ₹1.46 lakh crore. The private sector accounted for more than ₹32,000 crore of this, reflecting a growing appetite among private players to take on large-scale defence contracts.
On the export front, India reported record defence exports worth ₹24,000 crore, up from a modest ₹600–700 crore just a decade ago. Today, Indian-made defence equipment is being shipped to nearly 100 countries around the world.
Key Policy Statements
Defence Minister Rajnath Singh has repeatedly underscored that Make in India is not merely an industrial policy; it is a cornerstone of India’s national security strategy. Speaking at a recent industry summit, he referenced ‘Operation Sindoor’ as evidence of India’s self-reliant defence capabilities in action.
Singh also pointed to the upcoming Advanced Medium Combat Aircraft (AMCA) project as a landmark opportunity where private sector firms will co-develop next-generation platforms alongside public sector giants; a first in India’s defence sector.
Closing
This procurement drive is expected to unlock a wave of industrial activity within India’s defence sector. With an emphasis on local sourcing and indigenous innovation, Indian defence firms and startups stand to gain significantly.
The move is also expected to spur job creation across the supply chain, especially through MSMEs. On the global stage, the shift signals India’s transition from a defence importer to a credible manufacturing and export powerhouse, strengthening its position in the evolving geopolitics of defence trade.
Also read: India cleared ₹40,000 cr in emergency weapons: What’s the plan?
FAQs
What is the total value of India’s recent defence procurement approval?
India has approved defence procurements worth ₹1.05 lakh crore (about $12.3 billion), making it one of the largest such cycles in the country’s recent history.
What triggered this massive defence procurement?
The procurement was prompted by the military escalation with Pakistan on May 7, 2025, which included the most intense India-Pakistan clash in 50 years involving drones, missiles, and artillery.
What type of military equipment is India buying under this plan?
India is acquiring armoured recovery vehicles, surface-to-air missile systems, advanced electronic warfare systems, underwater drones, mine countermeasure vessels, moored mines, and rapid gun mounts.
Which defence companies are likely to benefit from this procurement?
Major domestic players like HAL, Bharat Forge, L&T, and Bharat Dynamics are expected to benefit, as the entire procurement falls under the 'Buy Indian – IDDM' category.
What does 'Buy Indian – IDDM' mean in defence procurement?
It refers to the procurement of systems that are fully designed, developed, and manufactured in India, ensuring domestic value creation and reduced import dependence.
How will this procurement impact Indian defence startups and MSMEs?
The procurement push is expected to create new opportunities for over 16,000 Indian MSMEs already active in the defence ecosystem, boosting local jobs and innovation.
What is India’s long-term goal with these indigenisation efforts?
The key goal is to reduce India’s status as the world’s second-largest arms importer by strengthening domestic R&D, manufacturing capabilities, and strategic self-reliance.
How much did India export in defence products recently?
India recorded defence exports worth ₹24,000 crore, a huge jump from just ₹600–700 crore a decade ago. Indian equipment is now shipped to nearly 100 countries.
Has India’s local defence production increased recently?
Yes, in FY24–25, India’s indigenous defence production reached an all-time high of ₹1.46 lakh crore, with private sector contributing over ₹32,000 crore.
What strategic projects were highlighted by the Defence Minister?
Defence Minister Rajnath Singh highlighted 'Operation Sindoor' as a case of Indian defence self-reliance and also pointed to the AMCA fighter jet project as a major public-private co-development milestone.