Record Defence Boost As India Clears Rs 2.38 Lakh Crore Military Upgrades

India has approved defence procurement proposals worth Rs 2.38 lakh crore, taking the total approvals this year to a record Rs 6.73 lakh crore. The plans cover the Army, Air Force and Coast Guard, including missiles, artillery, transport aircraft and drones. The move aims to boost military strength, improve surveillance and modernise equipment.

New Delhi: Defence Minister Rajnath Singh-headed Defence Acquisition Council (DAC) on Thursday cleared Acceptance of Necessity (AoN) for a fresh set of procurement proposals collectively valued at around Rs 2.38 lakh crore -- pushing the total AoN sanctioned in the current financial year to a record Rs 6.73 lakh crore across 55 proposals. 

It is the highest AoN quantum accorded in any single financial year, an official in the defence ministry said.

The DAC clearances span the Indian Army, Indian Air Force (IAF), and Indian Coast Guard, and cut across air defence, artillery, communications, transport aviation, strike drones, maritime patrol, and engine sustainment -- a breadth that signals an accelerating capital modernisation cycle.

Indian Army

The Army secured AoN for five systems. The Air Defence Tracked System will integrate real-time air defence control and reporting capability, a critical gap the service has been trying to plug amid the proliferation of cruise missiles and loitering munitions in regional theatres.

The Dhanush Gun System -- an indigenous 155mm/45-calibre howitzer -- will extend artillery reach across all terrains, adding lethality and precision at longer ranges.

The Armoured Piercing Tank Ammunition clearance will sharpen the anti-armour punch of the Army's tank fleet at a time when peer-adversary armour modernization remains a live concern. Rounding out the Army basket are the High Capacity Radio Relay, aimed at hardening tactical communications against jamming and interception, and the Runway Independent Aerial Surveillance System, which will give ground units persistent ISR coverage without dependence on airfield infrastructure -- operationally relevant across the Ladakh frontier and the north-eastern highlands.

Indian Air Force The IAF won approvals across four proposals. The Medium Transport Aircraft programme -- a long-anticipated replacement for the ageing An-32 and Il-76 fleets -- will address strategic, tactical and operational airlift requirements for all three services.

Procurement of five additional S-400 Triumf long-range surface-to-air missile batteries will thicken the layered air defence architecture protecting vital areas against ballistic and cruise threats; the IAF already operates three squadrons under a 2018 contract with Russia.

The remaining two squadrons of S-400 will arrive at the end of this year.

The Remotely Piloted Strike Aircraft approval marks a significant doctrinal shift, authorizing the IAF to pursue armed UAV platforms capable of offensive counter-air operations and stealth ISR -- a capability gap sharpened by lessons from recent conflicts in Ukraine and the Middle East.

Finally, AoN for the overhaul of Su-30MKI aero engine aggregates will extend the service life of the IAF's largest combat aircraft fleet.

Indian Coast Guard The Indian Coast Guard received clearance for Heavy Duty Air Cushion Vehicles, to be deployed on multipurpose coastal missions including high-speed patrol, reconnaissance, search-and-rescue, and logistics support in shallow and littoral waters.

Record Fiscal Footprint

Capital procurement contracts signed during 2025-26 now stand at Rs 2.28 lakh crore across 503 proposals.