New Delhi: Under the leadership of Defence Minister Rajnath Singh, the Defence Acquisition Council (DAC) on 5 August 2025 accorded Acceptance of Necessity (AoN) for defence capital acquisitions worth approximately ₹67,000 crore, targeting enhanced operational capability across all three services.
Key Procurement Proposals Approved
Army Enhancements
- Thermal Imager‑based Driver Night Sights for BMPs: AoN was granted to equip BMP armoured vehicles with thermal night-vision systems to significantly enhance mechanised infantry mobility during low‑light operations—a capability vital for strategic advance under adverse conditions.
Navy Upgrades
- Compact Autonomous Surface Craft, BrahMos Fire‑Control Systems & Launchers, and Upgradation of Barak‑1 Point‑Defence Missile System: These approvals will strengthen anti‑submarine warfare, integrate advanced fire‑control for BrahMos missiles, and enhance coastal defence through systems upgrades.
Air Force Capabilities
- Mountain Radars: Deploying these radars will augment air surveillance and boundary monitoring across India’s mountainous frontiers.
- SAKSHAM / SPYDER Weapon System Upgradation: Now slated for integration with the Integrated Air Command & Control System (IACCS), this upgrade will reinforce India’s layered air defence readiness.
Tri-Service Surveillance Expansion
- Procurement of MALE RPAs (Medium Altitude Long Endurance Remotely Piloted Aircraft): These drones—capable of carrying multiple payloads and weapons over long range—are expected to deliver continuous surveillance and strike abilities across all services. A recent report estimates acquisition of 87 units and 110+ air‑launched BrahMos cruise missiles, positioning India’s drone capability superior to Predator-class systems.
Support and Sustenance
- C‑17 and C‑130J Fleet Sustainment and Comprehensive Annual Maintenance Contract (CAMC) for the S‑400 Air Defence Missile System: These moves ensure operational readiness of strategic airlift and long-range missile defence platforms.
Context: A Continuation of Defence Modernisation Push
This DAC clearance follows major capital acquisition approvals from earlier in 2025:
- In March 2025, the DAC accorded AoN worth ₹54,000+ crore, including procurement of 1,350 HP engines for T‑90 tanks, Varunastra torpedoes, and airborne early warning systems, under a streamlined “Year of Reforms” procurement process.
- In July 2025, DAC approved ten new projects totaling ₹1.05 lakh crore, all sourced indigenously, for assets spanning naval warships, surface‑to‑air missile systems (QR‑SAM), and armoured and electronic warfare systems.
Strategic Significance
| Area | Strategic Benefit |
| Indigenous Push | Clear emphasis on domestic sourcing reinforces the government’s “Aatmanirbharta” (self-reliance) agenda in defence production. |
| All‑weather Capability | Night‑vision for BMPs, mountain radars, and long‑endurance RPAs significantly enhance surveillance and strike across terrain and weather conditions. |
| Integrated Air Defence | Upgradation of SPYDER into IACCS allows for multi-layered, networked air defence readiness. |
| Operational Readiness | Sustenance contracts for aircraft and S‑400 systems ensure high availability and uptime for critical platforms. |
| Investor Confidence & Industrial Momentum | Shares of defence firms such as BEL and Ideaforge rose up to 3% following the announcement, reflecting positive market sentiment. |
The DAC’s approvals on 5 August 2025 signify a major leap in India’s defence modernisation agenda, combining a robust boost to indigenous manufacturing with enhanced operational readiness.
The selected procurements, ranging from advanced radar systems to long-endurance drones and night‑vision upgrades, underscore a strategic shift towards high-tech, all‑domain defence preparedness. The continuity from earlier approvals in March and July highlights India’s sustained pace in defence capability expansion across Army, Navy, and Air Force domains.
