Bolstering Defence Indigenisation: Analysis of Recent DAC Procurement Approvals

The Defence Acquisition Council (DAC), under the Ministry of Defence, has recently granted in-principle approval for capital acquisition proposals amounting to approximately ₹1.10 lakh crore. This move is a strategic continuation of the government’s overarching policy to reduce import dependency and foster a robust domestic defence manufacturing ecosystem. By mandating that 98% of these procurements be sourced from the Indian industry, the government is effectively incentivizing indigenous research, development, and manufacturing capabilities. This decision is significant for several reasons. Firstly, it aligns with the 'Make in India' initiative, aiming to transform India from a net importer of defence equipment into a global manufacturing hub. By prioritizing domestic procurement, the government is not only saving precious foreign exchange but also creating a multiplier effect on the economy through the development of a specialized supply chain, MSME participation, and high-end technological skill sets. Furthermore, this shift enhances national security by ensuring self-reliance in critical military hardware, thereby reducing vulnerability to global supply chain disruptions and geopolitical pressures.