India has cleared a series of major defence procurement proposals worth approximately ₹2.38 lakh crore, marking one of its largest recent approvals aimed at strengthening the country’s military capabilities across all three services.
The approvals were granted at a meeting of the Defence Acquisition Council (DAC) chaired by Defence Minister Rajnath Singh on March 27, 2026, through the grant of Acceptance of Necessity (AoN) for multiple platforms and systems.
Army Modernisation: Firepower, Mobility and Communications Upgrades
For the Indian Army, key approvals include air defence tracking systems, armoured piercing tank ammunition, high-capacity radio relay systems, the Dhanush artillery gun system, and runway-independent aerial surveillance systems.
The air defence tracking system is expected to enhance real-time command, control and reporting capabilities, strengthening the Army’s integrated air defence network. High-capacity radio relay systems will improve secure and reliable battlefield communications.
The Dhanush artillery system is designed to boost long-range strike capability across varied terrain, improving both accuracy and operational reach. Armoured piercing ammunition will further enhance anti-tank effectiveness, while runway-independent aerial surveillance systems are expected to improve intelligence, surveillance and reconnaissance capabilities for frontline units.
Air Force Enhancements: Strategic Mobility and Air Defence Strengthening
For the Indian Air Force, the approved proposals include the acquisition of medium transport aircraft, the S-400 long-range surface-to-air missile system, remotely piloted strike aircraft, and upgrades to Su-30 aero engines and associated aggregates.
The planned induction of medium transport aircraft is intended to replace ageing fleets such as the An-32 and Il-76, thereby strengthening India’s strategic and tactical airlift capability.
The S-400 air defence system will enhance India’s ability to counter long-range aerial threats targeting critical installations, while remotely piloted strike aircraft are expected to improve precision strike capability as well as intelligence, surveillance and reconnaissance operations.
Upgrades to Su-30 aero engines are aimed at extending the service life of the aircraft and ensuring continued operational readiness of the fleet.
Naval and Coastal Security Upgrades
The Indian Coast Guard has also received approval for the acquisition of heavy-duty air cushion vehicles. These platforms will be deployed for a range of coastal and maritime roles, including high-speed patrolling, reconnaissance, search and rescue operations, logistical support, and the transport of personnel and equipment.
Record-Level Defence Capital Approvals
According to official data, the Defence Acquisition Council has approved proposals worth ₹6.73 lakh crore across 55 cases in the financial year 2025–26 so far. Additionally, capital procurement contracts worth ₹2.28 lakh crore have been signed during the same period.
Officials noted that both the volume of approvals and the number of signed contracts represent the highest levels recorded in any financial year to date, underscoring the scale of India’s ongoing defence modernisation drive.
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