India Greenlights Major Defense Procurement Worth $9 Billion

NEW DELHI, October 23, 2025 — In a significant step toward strengthening its national security and modernizing its armed forces, India’s Defence Acquisition Council (DAC) has approved defence procurement proposals worth ₹790 billion ($9 billion). The approvals include the acquisition of new missile systems, naval surface guns, high-mobility vehicles, and advanced equipment designed to boost India’s military readiness and self-reliance.

The announcement underscores India’s ongoing efforts to modernize its defence capabilities amid rising regional tensions and global geopolitical shifts. The DAC’s decisions are part of a broader strategy under Prime Minister Narendra Modi’s “Aatmanirbhar Bharat” (self-reliant India) initiative, which seeks to expand domestic defence production and reduce dependency on foreign suppliers.

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Key Acquisitions to Enhance India’s Air, Land, and Naval Power

According to the Defence Ministry, the new approvals will cover multiple branches of the armed forces:

• Missile Systems: The procurement of advanced surface-to-air and anti-ship missiles will significantly enhance India’s deterrence capabilities against regional adversaries.
• Naval Surface Guns: The Indian Navy will receive new-generation surface combat weapons to improve precision and range in maritime operations.
• High-Mobility Vehicles: The Indian Army is set to acquire indigenously manufactured tactical mobility vehicles, supporting rapid deployment and logistics in diverse terrains.
• Air Force Systems: The plan also reinforces India’s air power through modernization efforts around platforms such as the HAL Tejas light combat aircraft and Su-30MKI multirole fighters.

While details of each project have not yet been made public, sources indicate that the majority of contracts will be executed through Indian defence manufacturers, with an emphasis on technology transfer and local assembly.

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Strengthening Self-Reliance Under “Make in India”

India has rapidly emerged as one of the world’s largest defence markets, with consistent increases in procurement budgets over the past decade. The newly cleared projects reflect the government’s ambition to localize at least 75% of defence manufacturing under the “Make in India” framework.

Officials said the DAC’s approvals are aimed at empowering Indian companies like HAL, Bharat Electronics, and DRDO to produce cutting-edge technology domestically.

“This is another step toward India’s goal of becoming a global defence manufacturing hub,” said a senior defence official. “Each proposal approved today contributes directly to our strategic autonomy.”

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Global and Strategic Context

The decision comes amid growing regional security challenges, including border tensions with China and Pakistan and increased maritime competition in the Indian Ocean region.
India has also intensified defence cooperation with countries such as the United States, France, and Japan, with joint production and technology-sharing agreements helping fuel domestic innovation.

Earlier this month, India also conducted large-scale joint military exercises with key allies, further emphasizing its readiness to operate in multi-domain scenarios.

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Economic and Strategic Outlook

At current exchange rates, ₹790 billion equals approximately $9 billion (₹87.89 per USD), representing one of the largest single-day defence approvals in recent years. Defence analysts expect the spending to boost India’s domestic aerospace and defence industry, generate thousands of skilled jobs, and stimulate private-sector investment.

With India aiming to export $5 billion worth of defence equipment annually by 2030, these approvals are a critical milestone in achieving both security resilience and economic expansion in the defence sector.