Story 13 of 15 · 27 Oct
GS3 · Security · Defence Procurement

Centre approves defence deals worth ₹2.12 lakh crore

In 30 seconds

Before the armed forces can buy anything, the government must first agree the item is really needed. That first nod is called Acceptance of Necessity (AoN). The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, has given AoN to proposals worth about ₹2.12 lakh crore for the Army, Navy and Air Force. About 82% of the value is to come from Indian industry. Read it for AoN, the DAC and drones.

Fact File

Approved by
Defence Acquisition Council
Value
About ₹2.12 lakh crore
From Indian industry
About 82%
Stage
Acceptance of Necessity (first step)
K9 Vajra self-propelled tracked guns on Kartavya Path during the Republic Day parade
In the news

The ₹2.12 lakh crore defence approval: what happened?

Buying a weapon for the armed forces is like building a house: first you decide you need it, then you get the plans, test, bargain on price and only then sign. On Monday, the government took the first step for a very large shopping list.

  • Army: high mobility vehicles, self-propelled tracked guns (guns that move on their own tracks), gun shot response systems, light multi-role helicopters and very short-range air defence systems.
  • Drones: counter-drone systems mounted on platforms, long-range surveillance drones and long-range kamikaze drones (drones that dive into their target and explode).
  • Navy: Active Offboard Decoy Systems, which trick incoming missiles away from a ship, and indigenously built (made in India) naval platforms.
  • Air Force: helicopters, air defence systems, weapons and mobile X-band Doppler weather radars; special utility helicopters for transport.
  • The logic: more mobility and firepower for tank and armoured units, quick location of enemy fire, and cheap answers to the small drones that now hunt tanks.
Back Story

What are AoN and the Defence Acquisition Council?

The Defence Acquisition Council is the top body that clears what the armed forces buy. It is chaired by the Defence Minister and was set up in 2001 after the review that followed the Kargil war.

Acceptance of Necessity is its first approval. It says ‘yes, this is needed’ and decides how it will be bought. It is not a contract. Under the Defence Acquisition Procedure (DAP) 2020, trials, price talks and contracts come later and can take years.

DAP 2020 gives first preference to the ‘Buy (Indian-IDDM)’ category, where IDDM means Indigenously Designed, Developed and Manufactured. That is why the 82% domestic share matters.

How it works

From need to delivery

StepWhat happens
1. AoNDAC agrees the item is needed and picks the buying category
2. Request for proposalCompanies are invited to bid
3. TrialsEquipment is tested in the field
4. Price talksCost is negotiated
5. ContractDeal is signed; delivery follows
Rulebook

Which laws and Articles apply?

  • Defence Acquisition Procedure (DAP) 2020: the rulebook for defence buying.
  • Positive indigenisation lists: items that must be bought from Indian firms.
  • Union List, Seventh Schedule: defence is a subject of the Centre.
  • Defence industrial corridors in Uttar Pradesh and Tamil Nadu support home production.
Why examiners care

Why does the ₹2.12 lakh crore defence approval matter?

AngleWhat to note
Self-reliance82% domestic sourcing gives Indian firms steady orders.
Strategic autonomyHome-made supply is safer from sanctions and cut-offs in war.
Modern warDrones, counter-drones and decoys reflect lessons from recent wars.
ProcessAoN is only step one; delays come later.
Fault Lines

What are the problems with the ₹2.12 lakh crore defence approval?

  • Long gaps between AoN and contract.
  • ‘Indigenous’ items may still use imported engines and electronics.
  • Private firms and start-ups need testing facilities and assured orders.
  • Budget limits can slow how many approvals become real purchases.
Road Ahead

What should be done next on the ₹2.12 lakh crore defence approval?

  • Fixed deadlines for each stage after AoN.
  • Honest measurement of indigenous content.
  • More testing ranges open to private industry.
  • Long-term orders so MSMEs can invest.
Exam Radar

What can Prelims ask on the ₹2.12 lakh crore defence approval?

  • AoN = Acceptance of Necessity, the first step in defence buying.
  • DAC is chaired by the Defence Minister; set up in 2001.
  • Kamikaze drone: a loitering weapon that crashes into its target.
  • UAVs: not all can land vertically or hover (UPSC 2025).
  • Drone swarms communicate with each other; GPS spoofing counters them (UPSC 2026).
Answer Lab

How to write about the ₹2.12 lakh crore defence approval in Mains

Practice question (15 marks, 250 words): India’s defence approvals now favour domestic industry. Discuss the significance and the hurdles in turning approvals into capability.

  • Intro: ₹2.12 lakh crore AoN, 82% domestic.
  • Significance: self-reliance, autonomy, drone-era needs.
  • Hurdles: slow post-AoN process, imported parts, capacity.
  • Way forward: deadlines, testing, honest indigenisation data.
  • Conclusion: approvals must become deliveries.

Ready lines for your answer

GS-III Defence Indigenisation

  1. The DAC cleared proposals “with about 82% of the procurements to be sourced from the domestic industry”.
  2. AoN is the first step; stage-wise deadlines and honest indigenous-content data turn approvals into capability.
Quotable data point

AoN for proposals worth about ₹2.12 lakh crore, with about 82% to be sourced from domestic industry.

Exam angle

UPSC

Prelims: AoN, DAC, DAP 2020, drones and counter-drones. · Mains GS-III: defence indigenisation, security challenges.

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

'Acceptance of Necessity' (AoN) in defence procurement is granted by the:

Answer (b) & explanation

The DAC, chaired by the Defence Minister, grants AoN, the first step in a capital acquisition.

Practice · UPSC

The Defence Acquisition Council is chaired by the:

Answer (c) & explanation

The Defence Minister chairs the DAC, set up in 2001 after the post-Kargil Group of Ministers review.

Quick questions

Questions students ask about this

What is Acceptance of Necessity in defence?

The first approval by the Defence Acquisition Council that an item is needed; contracts come later.

Who chairs the Defence Acquisition Council?

The Union Defence Minister.

How much of the ₹2.12 lakh crore will come from Indian industry?

About 82% of the value is to be sourced from the domestic industry.

What is a kamikaze drone?

A drone that flies to a target and crashes into it, exploding like a missile.