Defence Ministry gives nod for buying India-made military hardware worth Rs 1.05 lakh crore

New Delhi, July 3 The Defence Acquisition Council, under the chairmanship of Defence Minister Rajnath Singh, on Thursday, gave the go-ahead for 10 proposals to purchase military hardware, including missiles and electronic warfare systems, worth approximately Rs 1.05 lakh crore through indigenous sourcing.

The Council accorded its "Acceptance of Necessity (AoN) for the procurement of Armoured Recovery Vehicles, Electronic Warfare System, Integrated Common Inventory Management System for the Tri-Services and Surface-to-Air Missiles. These procurements will provide higher mobility, effective air defence, better supply chain management, and augment the operational preparedness of the Armed Forces", according to a Defence Ministry statement.

AoNs were also accorded for the procurement of Moored Mines, Mine Counter Measure Vessels, Super Rapid Gun Mount and Submersible Autonomous Vessels. These procurements will enable the mitigation of potential risks posed to the naval and merchant vessels.

To provide further impetus to indigenous design and development, AoNs were accorded under the Buy (Indian-Indigenously Designed Developed and Manufactured) category, the statement said.

India’s indigenous defence production has surged to an all-time high of Rs 1.46 lakh crore, with exports increasing to a record Rs 24,000 crore in 2024-25, according to Defence Minister Rajnath Singh.

"Our defence production, which was only Rs 43,000 crore 10 to 11 years ago, has now crossed a record figure of Rs 1,46,000 crore, with the private sector’s contribution of over Rs 32,000 crore. Our defence exports, which were around Rs 600-700 crore 10 years ago, have surpassed a record figure of Rs 24,000 crore today," the minister stated in his address at the Confederation of Indian Industry (CII) annual summit recently.

He described Make-in-India as crucial for security and prosperity, stating that the use of indigenous systems during 'Operation Sindoor' has proved that India has the power to penetrate any armour of the enemy.

"Our weapons, systems, sub-systems, components, and services are reaching around 100 countries. Over 16,000 MSMEs, associated with the defence sector, have become the backbone of the supply chain. These companies are not only strengthening our self-reliance journey, but are also providing employment to lakhs of people,” the minister said.

He further stated that the Advanced Medium Combat Aircraft (AMCA) programme execution model will open an opportunity for the private sector to participate in a mega defence project along with public sector companies for the first time, further bolstering the Make in India drive in the defence industry, he added.

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