DAC clears defence proposals worth Rs 2.38 lakh crore to boost India’s military capability across Army, Air Force and Coast Guard
India has approved one of its biggest military modernisation moves in recent memory, with the Defence Acquisition Council clearing proposals worth about Rs 2.38 lakh crore. The approvals, announced on March 27, 2026, are aimed at strengthening the capabilities of the Indian Army, Indian Air Force and Indian Coast Guard at a time when India is accelerating defence preparedness and platform upgrades across multiple fronts.
The decision was taken by the Defence Acquisition Council (DAC), chaired by Raksha Mantri Rajnath Singh. Officially, the Council granted Acceptance of Necessity (AoN) for the procurement proposals. In India’s defence procurement system, an AoN is not the final contract itself, but it is the crucial policy clearance that confirms the armed forces need the equipment and allows the acquisition process to move ahead.
The scale of the latest clearance makes it a major national security development. According to the Ministry of Defence, the approved list spans land warfare systems, air defence, aircraft support, strike drones, communications, surveillance and coastal operations. Reuters, citing the government statement, reported the value at 2.38 trillion rupees, or roughly $25 billion, underlining the global size of the decision in financial terms as well.
What gives this announcement extra weight is the mix of systems involved. These are not one-off or symbolic purchases. The approved proposals touch core operational functions: battlefield air defence, artillery reach, anti-tank lethality, long-range aerial threat interception, airlift capability, reconnaissance, communications resilience, aircraft life extension, and rapid maritime response. In other words, this is a broad-based capability push rather than a single-service shopping list.
For the Indian Army, the DAC cleared proposals for the Air Defence Tracked System, Armoured Piercing Tank Ammunition, High Capacity Radio Relay, Dhanush Gun System, and Runway Independent Aerial Surveillance System. Each of these fills a very specific operational requirement. The official release says the Air Defence Tracked System will provide real-time air defence control and reporting capability, while the High Capacity Radio Relay is meant to ensure reliable and fail-proof communication.
The Dhanush Gun System is especially significant because it adds more depth to India’s artillery firepower. According to the Ministry of Defence, it will improve the Army’s ability to engage targets at longer ranges in all terrains, with improved lethality and accuracy. That matters because artillery remains one of the most decisive arms in high-intensity conflict, especially in border environments where terrain and logistics can complicate mobility and targeting.
The Runway Independent Aerial Surveillance System is another noteworthy inclusion. As described by the government, it will provide surveillance capability to Army units without dependence on conventional runway infrastructure. That points to a more flexible battlefield surveillance posture, which is increasingly important in modern warfare where mobility, dispersion and quick deployment often shape the success of an operation. The Armoured Piercing Tank Ammunition, meanwhile, is intended to strengthen the lethality of anti-tank ammunition, directly improving the Army’s effectiveness in armoured engagements.
For the Indian Air Force, the DAC cleared proposals for Medium Transport Aircraft, the S-400 Long Range Surface-to-Air Missile System, Remotely Piloted Strike Aircraft, and the overhaul of Su-30 aero engine aggregates. Together, these proposals show that the IAF’s modernisation is being treated as both a near-term operational need and a long-term sustainment priority.
The Medium Transport Aircraft proposal is among the most strategically important. The PIB release says induction of these aircraft, replacing the AN-32 and IL-76 transport fleet, will meet the strategic, tactical and operational airlift requirements of the services. That is a major point because transport aircraft are central not only to warfighting logistics but also to troop movement, humanitarian aid, rapid deployment, and support in difficult terrain, including high-altitude sectors.
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The inclusion of the S-400 long-range surface-to-air missile system further strengthens India’s layered air defence posture. The Ministry says the S-400 will counter enemy long-range air vectors targeting vital areas. In practical terms, that means improved protection for critical military and strategic assets against long-range aerial threats. Reuters also highlighted the S-400 as one of the headline items in the approved package, underscoring its significance in the broader military balance.
Another major feature is the approval for Remotely Piloted Strike Aircraft. The official statement says these platforms will enable Offensive Counter and Coordinated Air Operations while also providing stealth intelligence, surveillance and reconnaissance activities. This is a strong signal that India is investing more deeply in unmanned strike and reconnaissance capability, which has become central to modern air power around the world. Drones are no longer support tools alone; they increasingly shape targeting, persistence, precision, and risk reduction in contested environments.
The DAC also cleared the overhaul of Su-30 aero engine aggregates, which may sound technical but is strategically important. The Ministry says this overhaul will increase the service life of the aircraft and fulfil operational requirements of the Air Force. The point here is not just procurement of new systems, but sustaining frontline fleets already central to India’s combat capability. A modern military cannot depend only on new buys; it must also keep its main operational platforms available, efficient and mission-ready.
For the Indian Coast Guard, the DAC accorded AoN for Heavy Duty Air Cushion Vehicles. These vehicles are intended for multipurpose maritime coastal operational roles, including high-speed coastal patrolling, reconnaissance, search and rescue operations, rendering assistance to ships, and carrying personnel and stores including logistics. In a country with a long coastline and sensitive maritime approaches, these vehicles can improve responsiveness in shallow waters and coastal zones where speed and access matter.
One important correction to keep clear in any article on this development is that the official PIB release specifically names the Army, Air Force and Coast Guard in this approval note. It does not frame this announcement as a Navy-led proposal package. Coastal and maritime capability is included through the Coast Guard’s Heavy Duty Air Cushion Vehicles, but the official breakdown in this release is not Army-Air Force-Navy; it is Army-Air Force-Coast Guard.
This latest decision also needs to be seen in the wider fiscal context. According to the Ministry of Defence, in FY 2025–26, the DAC has already granted AoN for 55 proposals worth Rs 6.73 lakh crore. In addition, capital procurement contracts for 503 proposals worth Rs 2.28 lakh crore have been signed in the current fiscal year. The government says both the quantum of AoN granted and the capital contracts signed so far are the highest in any given financial year. That places the Rs 2.38 lakh crore announcement inside a much larger defence acquisition cycle rather than as an isolated headline.
From a strategic standpoint, the approvals reveal three broad priorities. First, India is clearly investing in multi-domain readiness, not just traditional firepower. The mix includes artillery, missiles, drones, surveillance, communications and coastal systems. Second, there is a push toward faster and more resilient operations, especially through transport aircraft, communication systems and runway-independent surveillance tools. Third, there is visible emphasis on platform sustainment and layered defence, seen in both the S-400 proposal and the overhaul of Su-30 engine aggregates. These are the building blocks of a force that is trying to become more responsive, more survivable and more modern at the same time. That interpretation is grounded in the list of systems officially cleared by the DAC.
For readers searching the bigger meaning behind “DAC clears defence proposals worth Rs 2.38 lakh crore,” the clearest takeaway is this: India is not merely buying more weapons; it is trying to plug operational gaps across the chain of warfare. Longer-range guns improve land combat reach. Better air defence strengthens the shield over key areas. New transport aircraft improve mobility. Strike drones expand offensive and ISR options. Coast Guard air cushion vehicles improve coastal flexibility. And aircraft overhaul protects existing combat strength.
The approvals do not mean immediate induction tomorrow. AoN is the start of the next procurement stage, not the end of it. Contracts, production schedules, deliveries and induction timelines will determine how quickly these capabilities reach the field. Still, the scale and diversity of the approvals make this one of the most consequential defence procurement clearances of 2026 so far.
In conclusion, the phrase “DAC clears defence proposals worth Rs 2.38 lakh crore” is not just another official line. It marks a major step in India’s ongoing military modernisation programme. Backed by an official Ministry of Defence release and echoed by Reuters, the announcement confirms a wide-ranging push to strengthen the Army, Air Force and Coast Guard with new systems, upgraded platforms and enhanced operational capability. As regional security dynamics remain complex and warfare continues to evolve, this clearance positions India to build a more capable, more flexible and more future-ready defence structure.