Capital expenditure for defence seems to outpace the Budget FY26, and this might get reflected in the Budget for 2026-27.
The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh on Monday approved equipment purchases worth Rs 79,000 crore. The funds will be used to acquire long range rockets, missiles, radar systems and military platforms among other machinery, to reinforce the armed forces’ combat prowess.
With this, the DAC has approved defence acquisition proposals worth Rs 3.17 lakh crore since March 2025. The Union Budget had made a defence capital outlay of Rs 1,80,000 crore, while the overall defence Budget was pegged at Rs 6.18 lakh crore, up 9.5% on year.
Timeline of these purchases
The DAC-cleared purchases will be carried out over years, yet the bunching of the approvals signal an acceleration in defence capex.
Monday’s approvals also included acquisition of low level lightweight radars, long-range guided rocket ammunition for Pinaka rocket system and integrated drone detection and interdiction system (Mk-II) for the Indian Army, according to a defence ministry statement. Loiter munition will be used for precision strike of tactical targets, whereas low level lightweight radars will detect and track small size, low flying unmanned aerial systems.
Long-range guided rockets
Long range guided rockets are being procured to enhance the range and accuracy of Pinaka rocket systems for effective engagement of high value targets. Integrated drone detection and interdiction system (Mk-II) with enhanced range will protect the vital assets of the Indian Army in tactical battle area and hinterland.
These apart, for the Indian Navy, approval was accorded for procurement of high frequency software defined radios (HF SDR) Manpack and for leasing high altitude long range (HALE) remotely piloted aircraft system (RPAS).
The unspecified number of RPAS is being taken on lease for continuous intelligence, surveillance and reconnaissance over the Indian Ocean region, the ministry said.
For the Indian Air Force, approval was given for procurement of automatic take-off landing recording system, Astra Mk-II missiles, full mission simulator and SPICE-1000 long range guidance kits, etc, it said.
“Induction of the automatic take-off landing recording system will fill the gaps in the aerospace safety environment by providing high definition all-weather automatic recording of landing and take-off,” the ministry said.
It said Astra Mk-II missiles with enhanced range will increase the capability of the fighter aircraft to neutralise adversary aircraft from large standoff range.
The full mission simulator for light combat aircraft Tejas will augment pilots’ training in a cost effective and safe manner, while SPICE-1000 will enhance long range precision strike capability of the Indian Air Force, according to the ministry.
On October 23, the DAC approved defence procurement proposals worth about ₹79,000 crore. For the Indian Army, Acceptance of Necessity (AoN) was accorded for the Nag Missile System (Tracked) Mk-II, Ground-Based Mobile Electronic Intelligence System, and High Mobility Vehicles.
On July 3, 2025, the DAC cleared 10 capital acquisition proposals worth around ₹1.05 lakh crore, largely under the Buy (Indian-IDDM) category, reinforcing the government’s push for self-reliance in defence production across the three services.
Before that, the DAC met on March 20, 2025, and approved capital acquisition proposals valued at over Rs 54,000 crore, including engines for T-90 tanks, naval torpedoes and AEW&C systems for the Indian Air Force.
(With PTI inputs)