India Approves ₹2.38 Lakh Crore Defence Upgrade: Key Enhancements for IAF, Army, and Coast Guard

New Delhi, March 27, 2026 – In a significant move to modernize India's defense capabilities, the Defence Acquisition Council (DAC), led by Defence Minister Rajnath Singh, approved capital acquisition proposals worth Rs 2.38 lakh crore (approximately USD 25 billion) on Friday. These acquisitions, intended for the Indian Army, Indian Air Force, and Indian Coast Guard, highlight the government's commitment to strengthening national security amid shifting regional challenges.

During the meeting, Defence Minister Singh announced that the DAC had granted Acceptance of Necessity (AoN) for proposals totaling Rs 2.38 lakh crore, which will enhance India's defense preparedness. He also noted that in the financial year 2025–26, AoN was accorded for 55 proposals worth Rs 6.73 lakh crore, while capital procurement contracts were signed for 503 proposals valued at Rs 2.28 lakh crore.

Several high-value acquisitions were approved for the Indian Air Force, aimed at filling long-standing capability gaps in areas such as airlift, air defense, and unmanned combat operations.

The council sanctioned the procurement of Medium Transport Aircraft to replace the aging Antonov An-32 and Ilyushin Il-76 fleets. These new aircraft will support strategic and tactical airlift needs, enabling rapid troop deployment, cargo transport, and humanitarian and disaster relief operations across various terrains. This acquisition is designed to enhance the IAF's logistics capabilities by bridging the gap between heavier strategic lifters and lighter tactical aircraft.

Furthermore, the DAC approved the purchase of additional Russian S-400 long-range surface-to-air missile systems. This acquisition aims to strengthen India's layered air defense against advanced aerial threats, including fighter jets, bombers, ballistic missiles, and unmanned aerial vehicles. The S-400 systems, already partially operational with the IAF, have shown effectiveness in recent operations, and the new systems will expand protection over critical national assets.

The council also approved AoN for Remotely Piloted Strike Aircraft, which will augment offensive capabilities through coordinated air operations and stealth intelligence, surveillance, and reconnaissance missions. These unmanned combat aerial vehicles (UCAVs) will integrate indigenous and advanced unmanned technologies into the IAF's arsenal, offering precision strike options with minimal risk to manned aircraft.

In support of the existing fleet, the DAC approved the overhaul of Su-30 aero-engine aggregates, extending the service life and ensuring sustained operational readiness of the Sukhoi Su-30MKI multi-role fighters.

The Indian Army received AoN for various proposals to enhance ground-based firepower and communications. These include the Air Defence Tracked System for real-time air defense control, Armoured Piercing Fin-Stabilised Discarding Sabot (APFSDS) tank ammunition for increased anti-tank lethality, High Capacity Radio Relay systems for secure battlefield communications, the Dhanush Gun System for improved artillery precision, and the Runway Independent Aerial Surveillance System for enhanced intelligence gathering in diverse terrains.

For the Indian Coast Guard, the DAC approved the procurement of Heavy Duty Air Cushion Vehicles (hovercraft) to support high-speed coastal patrolling, search and rescue missions, reconnaissance, and logistics operations, thereby enhancing maritime security and rapid response capabilities along India's extensive coastline.

These approvals are seen as a comprehensive effort towards self-reliance under the Atmanirbhar Bharat initiative, while also incorporating strategic partnerships, such as with Russia for the S-400 systems. The decisions are expected to create significant opportunities for domestic industry participation through technology transfer and local manufacturing, fostering innovation and job creation in the defense sector.

This extensive procurement package represents India's proactive approach to addressing gaps in air mobility, integrated air defense, unmanned warfare, and maritime domain awareness. With contracts entering the subsequent stages of tendering, negotiations, and final approvals by the Cabinet Committee on Security, these acquisitions are poised to considerably enhance the operational capabilities of India's armed forces in the coming years.