Full Breakdown
India’s Defence Acquisition Council Approves INR52,000 Crore Modernisation Package
7/4/2026, 5:29:46 AM
Major Defence Procurement Package Approved
On 3 July 2026, the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, accorded Acceptance of Necessity (AoN) for defence acquisition proposals valued at nearly INR52,000 crore. The approvals target enhancements for the Indian Army, Navy and Air Force and represent a coordinated effort to modernise the nation’s armed forces.
Army Modernisation Initiatives
The DAC cleared procurement of six systems for the Indian Army:
- Akash Tarang – an anti-unmanned aerial vehicle electronic warfare system designed to counter hostile drones.
- Man-Portable Anti-Tank Guided Missile (MPATGM) – intended to strengthen infantry capability against enemy armoured formations.
- Medium-Range Surface-to-Air Missile (MRSAM) – aimed at expanding medium-range air-defence against diverse aerial threats.
- Very Short-Range Air-Defence System (V-SHORADS) – equipped with multi-spectral sensing to improve resilience against counter-measures.
- Active Protection Systems – to increase survivability of main battle tanks.
- Jet-based Kamikaze drone system – projected to deliver enhanced electronic-warfare capability with greater lethality and cost-effectiveness.
Navy Enhancements
For the Indian Navy, the council approved:
- Multi-Influence Ground Mines (MIGM) – to reinforce sea-denial by restricting adversary movement.
- Naval Shipborne Unmanned Aerial Systems (NSUAS) – to boost maritime surveillance and situational awareness through advanced sensors.
- Land-Based Testing Facility (LBTF) for Electric Propulsion Systems – to support development and validation of electric propulsion for future naval platforms.
Air Force Capabilities Expansion
The Indian Air Force will receive:
- Fixed-Wing High-Altitude Pseudo-Satellites (FW-HAPS) – to provide persistent intelligence, surveillance, reconnaissance (ISR), telecommunications and remote-sensing capabilities, extending long-endurance operational reach.
- Additional proposals, not itemised in the source, were also approved.
Financial Scope and Procurement Details
The INR52,000 crore package distributes funding across land, sea and air domains, with the Army receiving the largest share of system acquisitions, followed by the Navy’s sensor and mine systems, and the Air Force’s ISR platform.
Strategic Implications for Indian Defence
The approvals aim to improve operational readiness across three domains:
- Enhanced protection against drone threats and armored assaults for ground forces.
- Strengthened maritime denial and surveillance capabilities for naval operations.
- Extended ISR and communication reach for air operations, supporting sustained missions.
Official Statements & Responses
The Ministry of Defence stated that the approved acquisitions “will strengthen the operational capabilities of the Army, Navy and Air Force.” Defence Minister Rajnath Singh, as chair of the DAC, presented the approvals as part of a “major push towards modernising India’s armed forces with advanced indigenous and next-generation technologies.”
Conflicting Reports & Gaps
The source material provides a single, consistent account of the approvals. No contradictory figures or alternative interpretations are reported.
Upcoming Developments
The establishment of the LBTF for electric propulsion testing will support the development and validation of electric propulsion systems for future naval platforms. Ongoing implementation of the approved systems will proceed under the Ministry of Defence’s procurement schedule.
