Defence Acquisition Council Approves ₹79,000 Crore Purchases, Boosting 'Make in India'
DAC approves ₹79,000 crore defence acquisitions, emphasizing indigenous manufacturing for national security.
Photo by Ainur Khakimov
The Defence Acquisition Council (DAC), chaired by the Defence Minister, has approved capital acquisition proposals worth ₹79,000 crore, a significant boost to India's defence capabilities and the 'Make in India' initiative. These proposals include the procurement of light tanks, mounted gun systems, and various missiles, with a strong emphasis on indigenous design, development, and manufacturing.
This move aims to reduce reliance on foreign imports, enhance self-reliance in defence production, and strengthen national security. The focus on advanced technologies like Artificial Intelligence and drone swarms for surveillance and combat reflects India's strategic vision for modernizing its armed forces.
Key Facts
Defence Acquisition Council (DAC) approved proposals worth ₹79,000 crore
Proposals include light tanks, mounted gun systems, anti-tank missiles, air defence systems
Emphasis on 'Make in India' and indigenous design, development, and manufacturing
Focus on Artificial Intelligence (AI) and drone swarms for surveillance
UPSC Exam Angles
Role and functions of the Defence Acquisition Council (DAC) and its significance in defence procurement.
The 'Make in India' initiative's impact and challenges in the defence sector.
Strategic importance of indigenous defence production for national security and geopolitical standing.
Technological advancements in warfare (AI, drones) and India's preparedness.
Economic implications of defence indigenization (job creation, R&D, export potential).
Visual Insights
DAC's ₹79,000 Crore Boost to 'Make in India' Defence
This dashboard highlights the key financial and strategic implications of the recent Defence Acquisition Council (DAC) approval, emphasizing its contribution to indigenous defence manufacturing and national security.
- Total Acquisition Value Approved
- ₹79,000 Crore
- Indigenous Procurement Share (Capital Budget)
- ~78%+3% (YoY estimate)
- Defence Budget (FY 2025-26 Estimate)
- ₹6.6 Lakh Crore+6% (YoY estimate)
- Focus on Advanced Technologies
- AI, Drones, Missiles
Represents a significant capital outlay for modernizing the Indian Armed Forces, focusing on indigenous procurement.
Reflects the increasing preference for domestically designed, developed, and manufactured defence equipment, a core tenet of 'Atmanirbhar Bharat'.
The overall defence budget, of which a significant portion is allocated for capital acquisitions like those approved by DAC.
Highlights India's strategic vision to integrate cutting-edge technologies for enhanced surveillance, combat, and future warfare capabilities.
More Information
Background
Latest Developments
Practice Questions (MCQs)
1. With reference to the Defence Acquisition Council (DAC) in India, consider the following statements: 1. It is the highest decision-making body of the Ministry of Defence for capital acquisitions. 2. The Union Defence Minister chairs the DAC. 3. All capital acquisition proposals, irrespective of their value, must be approved by the DAC before being processed. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Show Answer
Answer: A
Statement 1 is correct. The DAC is indeed the highest decision-making body for capital acquisitions in the Ministry of Defence. Statement 2 is correct. The Union Defence Minister chairs the DAC. Statement 3 is incorrect. While the DAC approves major capital acquisition proposals, there are financial thresholds below which certain proposals might be approved at lower levels within the Ministry of Defence or by other committees, depending on the Defence Acquisition Procedure (DAP) guidelines. Not 'all' proposals irrespective of value require DAC approval.
2. Consider the following statements regarding the 'Make in India' initiative in the defence sector: 1. It aims to reduce India's reliance on foreign defence imports and boost indigenous manufacturing. 2. The Innovations for Defence Excellence (iDEX) initiative is a key component to foster innovation and technology development by MSMEs and startups. 3. The Defence Production and Export Promotion Policy (DPEPP) 2020 aims to achieve a turnover of ₹1,75,000 crore, including exports of ₹35,000 crore, in aerospace and defence goods and services by 2025. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Show Answer
Answer: D
Statement 1 is correct. A primary goal of 'Make in India' in defence is to achieve self-reliance and reduce import dependency. Statement 2 is correct. iDEX is indeed a flagship initiative under the 'Make in India' umbrella for defence, promoting innovation among startups and MSMEs. Statement 3 is correct. The DPEPP 2020 sets ambitious targets for defence manufacturing turnover and exports by 2025, aligning with the 'Make in India' vision.
3. In the context of modern warfare and India's strategic vision for defence, which of the following statements is NOT correct?
- A.Artificial Intelligence (AI) is being increasingly integrated into defence systems for enhanced surveillance, decision-making, and autonomous operations.
- B.Drone swarms offer significant advantages in terms of cost-effectiveness and overwhelming enemy defences, particularly in asymmetric warfare scenarios.
- C.India's focus on indigenous development of advanced technologies like AI and drone swarms is primarily aimed at reducing the overall defence budget.
- D.The development of dual-use technologies, which have both civilian and military applications, is a key area of focus for defence R&D.
Show Answer
Answer: C
Statements A, B, and D are correct. AI and drone swarms are indeed critical for modern warfare, offering strategic advantages. Dual-use technologies are also a significant focus. Statement C is NOT correct. While indigenous development might lead to cost efficiencies in the long run, the primary aim of focusing on advanced technologies like AI and drone swarms is to enhance national security, achieve strategic autonomy, modernize the armed forces, and gain a technological edge, rather than solely reducing the overall defence budget. In fact, initial R&D and procurement costs for such advanced systems can be substantial.