A staggering 98% of the acquisition value will be sourced from domestic industries
In a significant move to support the operational capabilities of the Indian Armed Forces the Defence Acquisition Council (DAC) has approved capital acquisition proposals totalling Rs 2.23 lakh crore
 
This decision by the DAC, which met under the leadership of Defence Minister Rajnath Singh on November 30, 2023, aligns with India's ‘Aatmanirbharta’ (self-reliance) initiative in defense. A staggering 98% of the acquisition value, approximately Rs 2.20 lakh crore, will be sourced from domestic industries.
 
The approved acquisitions comprise the procurement of Light Combat Helicopters (LCH) and Light Combat Aircraft (LCA) Mk 1A from Hindustan Aeronautics Limited (HAL), Medium Range Anti-Ship Missiles for the Indian Navy, and advanced Towed Gun Systems, intended to replace the existing Indian Field Gun.
 
These acquisitions are designed to enhance the operational capabilities of the Indian Armed Forces across different branches, with the LCH and LCA Mk 1A strengthening air power, the Anti-Ship Missiles enhancing naval strength, and the Towed Gun Systems upgrading artillery capabilities. Specific enhancements in the functions of lethality, versatility, and competitiveness of the Indian Armed Forces across various domains are expected.
 
Strategies to Maintain Substantial Indigenous Content
 
To maximize indigenization, the DAC has implemented a major amendment in the Defence Acquisition Procedure (DAP) 2020, mandating a minimum of 50% indigenous content in the form of material, components, and software manufactured in India for all procurement categories. This move is targeted at guaranteeing that a considerable portion of defense equipment is manufactured within India.
 
By focusing on developing its domestic defense manufacturing industry, India is positioned to stimulate economic growth, aspiring to significantly elevate job creation and skill development within the country. This approach also creates strategic independence beyond technical operations, enabling India to make more autonomous decisions regarding its defense posture and techniques. 
 
Moreover, it encourages technological advancement in the defense sector, promoting innovation. Additionally, this strategy enhances India's potential to become an exporter of defense equipment, thus improving its global standing in defense manufacturing.
 
Collectively, these factors contribute to a comprehensive strengthening of India's defense capabilities and economic stature.