Indian Defence Sector gets boost Rs. 1.1 lakh acquisition by armed forces, 98 per cent to indigenous industry
Introductory Memo:
The Indian Defence Sector is getting a boost. The Defence Acquisition Council (DAC) of Ministry of Defence has given consent for acquisition of defence material worth Rs. 1.1 lakh crore. The decision was taken in a meeting of the DAC chaired by Union Home Minister Rajnath Singh on September 7th, 2026.
Analysis/ analytical view:
These acquisitions will enhance the capabilities of the Indian Army, Navy, and Air Force. New high-mobility vehicles and advanced light helicopters are among the approved procurements. Existing fighter jets will also receive necessary upgrades to boost war-fighting capabilities. The officials announced that about ninety-eight percent of these acquisitions would be sourced from Indian industries, thereby giving them impetus to surge ahead with confidence.
The approved procurements include Chemical, Biological, Radiological and Nuclear (CBRN) Recce Vehicles, High Mobility Vehicles (HMVs), Advanced Light Helicopters (ALHs), Arudhra Radars, Marine Gas Turbines (MGT) and Ground-Based Multi-Purpose Jammers, among others, according to a report.
The DAC has accorded the Acceptance of Necessity (AoN) for procuring CBRN Recce Vehicles, High Mobility Vehicles (HMV), Self-Propelled Mechanical Mine Layers (MML), Advanced Light Helicopters (ALHs), Trawl Tanks and Sarvatra Bridge System for the Indian Army.
Grant of AoNs or an in-principle administrative approval to proposed acquisitions is the first step in the defence procurement process. Defence Ministry will overhaul and modify forty Su-30MKIs to fire Russia’s heavy R-37M long-range air-to-air missile, giving the Indian Air Force a dedicated weapon against high-value airborne targets like AWACS aircraft and aerial refuellers. The package also clears development of an indigenous 24-28 MW marine gas turbine for the Navy’s warships.
For the Indian Air Force (IAF), the DAC cleared “various proposals to enhance the war-fighting capability of fighters, transports and helicopters”. This includes the overhaul of 40 Su-30MKIs by Hindustan Aeronautics Ltd (HAL), twice the number the PSU had earlier proposed. The IAF operates around 260 Su-30MKIs, its mainstay fighter fleet, with the council having cleared the overhaul of Su-30 aero-engine aggregates in March, according to a report in the Indian Express.
The approval seeks to address a gap in the IAF’s long-range beyond-visual-range (BVR) capability, with Operation Sindoor underscoring the requirement. The overhaul covers modifications to allow the Sukhois to fire the RVV-BD, the export version of Russia’s R-37M. Weighing 510 kg and carrying a 60-kg warhead, the missile has a declared range of 200 km and is designed to engage AWACS aircraft, aerial refuellers and other high-value airborne assets critical to an adversary’s air campaign.
The indigenous Astra Mk-2, still undergoing development trials, is a much lighter fighter-to-fighter BVR missile, weighing around 155 kg and carrying a 15-kg warhead, with a comparable claimed range. The difference in size and warhead weight reflects their distinct roles: the R-37M is designed to deliver a heavy punch against large, high-value aircraft at long range, while the Astra Mk-2 is intended primarily for engagements between fighter aircraft.
The IAF also got a ground-based multi-purpose jammer that “will provide effective jamming against radars of adversaries.”
For the Navy, the DAC cleared the design, development and subsequent procurement of a marine gas turbine in the 24-28 MW class, with the ministry saying the propulsion system “will reduce dependency on foreign vendors”. India currently imports turbines for several frontline destroyers and frigates.
The programme is likely to go the Make-I route of the Defence Acquisition Procedure, under which the government funds indigenous design and development and can meet up to 70% of prototype cost. It could involve Rs 4,000-5,000 crore, with four prototypes planned and a minimum requirement of around 40 engines.
The Navy will also get Arudhra radars, which “will replace the existing Air Route Surveillance Radars at various Naval Air Stations”. Developed by DRDO, Arudhra is a four-dimensional active phased-array radar with an instrumented range of 400 km, able to detect a two-square-metre target at up to 300 km.
The Army gets more HAL-built Advanced Light Helicopters or Dhruv, to “execute complex missions across all terrains and operational situations,”. Earlier, a Rs. 8,073 crore deal for 34 ALH Mk-III was signed with HAL in March 2024.
Also cleared were high-mobility vehicles to “enhance operational capabilities, logistic support and mobility in challenging terrains”, chemical, biological, radiological and nuclear (CBRN) reconnaissance vehicles. “These vehicles will be capable of detecting, identifying, monitoring and marking of areas contaminated with CBRN agents”, self-propelled mechanical mine layers for “fast and responsive minelaying”, and trawl tanks and the Sarvatra bridge system for “composite crossings to fighting formations during operations”.
The announcement made by the Defence Minister has its impact on the market instantly. The stocks of the Hindustan Aeronautics Limited (HAL), the main integrator for the Advanced Light Helicopters (ALH) programme called the Dhruv, soared. Similarly stocks of Bharat Electronics Limited (BEL) involved in Chemical, Biological, Radiological, and Nuclear (CBRN) reconnaissance vehicles, the Arudhra radar (lead developer), ground-based multi-purpose jammers, and ALH avionics systems, Larsen & Toubro and Bharat Forge, the company won a landmark order for marine gas turbine generators for the Indian Navy’s Kolkata-class ships. It represents the company’s largest naval systems order to date and marks a strategic entry into shipboard power generation.
News at a Glance:
By the Numbers: The official PIB/Ministry of Defence release dated 7 September 2026
| Parameter | Official figure |
| Total acquisition proposals | ~₹1,10,000 crore |
| Equivalent | ₹1.10 lakh crore |
| Share sourced from Indian industry | ~98% |
| Approx. Indian-industry value | ~₹1,07,800 crore |
| Approx. non-Indian portion | ~₹2,200 crore |
| Date of DAC approval | 7 September 2026 |
| Approving body | Defence Acquisition Council (DAC) |
| Chairman | Rajnath Singh |
| Nature of approval | Acceptance of Necessity (AoN) |
| Services covered | Army + Navy + Air Force |
Previous DAC approvals for comparison
| DAC decision | Date | Approx. value |
| Current package | 7 Sep 2026 | ₹1.10 lakh crore |
| Previous major package | 3 Jul 2026 | ₹52,000 crore |
| 2025 indigenous package | 3 Jul 2025 | ₹1.05 lakh crore |
Academic Insight:
https://mod.gov.in/sites/default/files/Annual-Report-of-MoD-2024-25.pdf
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2307452&lang=1®=3&utm
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2280728&lang=1®=3&utm
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2141835&lang=1®=3&utm
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2307452&lang=1®=3&utm
Social Media Pulse:
https://x.com/SpokespersonMoD/status/2097007230407315665?utm
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