DAC Approves ₹52,000 Crore Defence Deals: Defence Stocks in Focus

On 3rd July 2026, Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, approved Acceptance of Necessity (AoN) for defence acquisition proposals worth around ₹52,000 crore.

An AoN is the government's initial approval that allows the procurement process to move to the next stage. It does not mean contracts have been awarded yet but marks the beginning of the acquisition process.

The latest approvals cover a wide range of systems for the Indian Army, Indian Navy and Indian Air Force, with a strong focus on strengthening indigenous defence manufacturing and improving India's military preparedness.

Indian Army to Receive Advanced Air Defence, Anti-Drone and Missile Systems

Several top-priority purchasing projects for the Indian Army were accepted by the Defence Acquisition Council to help to increase battlefield survival and boost air defence capacity. The approved systems include:

• Anti-Unmanned Aerial Vehicle (UAV) Electronic Warfare System: AKASH TARANG

• Man-Portable Anti-Tank Guided Missile (MPATGM) Systems

• Medium Range Surface-to-Air Missile (MRSAM) Weapon System

• Very Short Range Air Defence System (V-SHORADS)

• Tank Active Protection System

• Jet-Based Kamikaze Drone System

Ministry of Defence claims that AKASH TARANG system would help Army units to be well protected against hostile drones, addressing the growing threat posed by unmanned aerial vehicles in modern warfare.

While the MRSAM Weapon System offers medium-range defence against a broad spectrum of stand-off airborne threats, MPATGM system is meant to help the infantry better meet stand-off aerial threats.

The ministry also said that V-SHORADS, which use multi-spectral sensing technology, will help the Army's short-range air defence resistance against enemy counterattacks.

Additionally, the Active Protection System will improve the defensive capability by increasing its survivability against incoming threats.

While still a cost-effective option, the authorised Jet-Based Kamikaze Drone System will provide more electronic warfare capacity, more lethality, and better survivability. 

Indian Navy Gets New Mine Warfare and Unmanned Systems

For the Indian Navy, DAC approved procurement proposals for:

• Multi Influence Ground Mine (MIGM)

• Naval Shipborne Unmanned Aerial System (NSUAS)

• Land-Based Testing Facility (LBTF) for Electric Propulsion Systems

The Ministry of Defence said the MIGM will strengthen India's maritime defence by restricting enemy movement in strategic waters. 

Furthermore, NSUAS will enhance situational awareness during maritime operations through the use of advanced sensor technology on board Navy vessels.

Meanwhile, the Land-Based Testing Facility will support the testing of electric propulsion motors and related systems, helping accelerate the development of indigenous naval technologies. 

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Indian Air Force to Strengthen Surveillance Capabilities

For the Indian Air Force, Defence Acquisition Council approved the procurement of a Fixed Wing High Altitude Pseudo Satellite (FW-HAPS) platform.

The system is expected to provide long-endurance capabilities across several mission areas, including:

• Intelligence

• Surveillance

• Reconnaissance (ISR)

• Telecommunications

• Remote sensing

Why ₹52,000-Crore Defence Approval Matters?

₹52,000-crore approvals reflect the government's continued focus on modernising the armed forces while promoting domestic defence manufacturing. The procurement proposals are aimed at strengthening India's capabilities in:

• Counter-drone warfare

• Layered air defence

• Precision missile systems

• Autonomous unmanned platforms

• Electronic warfare

• Naval propulsion technologies

• Persistent surveillance capabilities

Although the approvals are important, they only represent the first stage of the procurement process. Contract awards will happen later, after the tendering and evaluation process is completed. 

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Defence Stocks That Could Benefit

Following DAC approvals, several listed defence companies could remain on investors' radar because of their presence in these segments.