India's Defence Acquisition Council approves Rs 54,000 crore deals

On March 20, 2025, the Defence Acquisition Council (DAC) in India approved new defense deals worth Rs 54,000 crore. This move aims to enhance the country's military capabilities and make the procurement process faster. The DAC granted Acceptance of Necessity (AoN) for eight major acquisitions. These include 1,350 HP engines to upgrade T-90 tanks for the Indian Army. The upgrades will improve mobility, especially in high-altitude areas. The Indian Navy will receive Varunastra torpedoes, while the Indian Air Force will acquire Airborne Early Warning and Control (AEW&C) aircraft systems. Additionally, the DAC introduced reforms to reduce procurement times from 96 weeks to just 24 weeks. New guidelines will streamline the process, allowing for faster proposal preparation and shortened trial evaluations. Contract negotiations must also be completed within six months. Analysts believe that FY26 could be vital for defense contracts, with major orders expected for various systems, including fighter jets, drones, and new submarines. The Cabinet Committee on Security has also approved Rs 7,000 crore for local artillery procurement. Stocks related to defense companies are likely to benefit from these developments. Key players mentioned include Solar Industries, PTC Industries, and Bharat Dynamics Ltd. With increased government support and quicker processes, India's defense sector is set for growth in the coming years.