The Defence Acquisition Council (DAC), chaired by Raksha Mantri Rajnath Singh, approved capital acquisition proposals worth approximately ₹79,000 crore for the Indian Army, Navy, and Air Force during its meeting on October 23, 2025, held at South Block, New Delhi, according to a PIB press release.
These approvals cover a range of advanced systems and equipment aimed at strengthening India’s defence capabilities across land, sea, and air.
Indian Army Procurements
For the Army, the DAC accorded Acceptance of Necessity (AoN) for several critical systems. The Nag Missile System (Tracked) Mk-II (NAMIS) is designed to neutralize enemy combat vehicles, bunkers, and field fortifications. Ground-Based Mobile ELINT Systems (GBMES) will provide continuous electronic intelligence on enemy emitters, while High Mobility Vehicles (HMVs) with a Material Handling Crane will enhance logistic support across diverse terrains.
Defence Stocks to Benefit: BDL, BEL, BEML
These acquisitions are expected to benefit companies like Bharat Dynamics, which may receive orders for NAMIS, and Bharat Electronics (BEL) and Astra Micro, which are likely to supply GBMES. BEML could benefit from the procurement of HMVs.
Indian Navy Procurements
The Navy received AoN for a variety of systems to boost amphibious, maritime, and defensive operations. These include Landing Platform Docks (LPD), 30mm Naval Surface Gun (NSG), Advanced Lightweight Torpedoes (ALWT), Electro Optical Infra-Red Search and Track Systems, and Smart Ammunition for the 76mm Super Rapid Gun Mount.
LPDs are expected to enhance coordination with the Army and Air Force during amphibious operations and support peacekeeping, humanitarian assistance, and disaster relief missions. ALWT, developed indigenously by DRDO’s Naval Science & Technological Laboratory, can target conventional, nuclear, and midget submarines. The NSG is intended to strengthen low-intensity maritime and anti-piracy operations.
Shipbuilding companies like Mazagon Dock, Garden Reach Shipbuilders, Cochin Shipyard, and L&T are potential beneficiaries of orders for LPDs. BHEL and Garden Reach Shipbuilders could supply 30mm NSG and smart ammunition. Orders for ALWT could go to Bharat Dynamics, while BEL, Astra Micro, and Data Patterns may supply Electro-Optical Infra-Red Search and Track Systems.
Indian Air Force Procurements
For the Air Force, the DAC approved the Collaborative Long Range Target Saturation/Destruction System (CLRTS/DS) along with other proposals. The CLRTS/DS system offers autonomous capabilities for take-off, landing, navigation, target detection, and payload delivery, enhancing the operational efficiency of the Air Force in mission areas.
Market Impact: Nifty Defence Index Jumps Over 1% on Friday
On Friday, October 24, the Nifty India Defence Index reflected positive market sentiment, surging over 1%. The index has jumped over 3.5% in the last 7 trading sessions, though it has remained flat over the past month. The DAC’s ₹79,000 crore procurement approvals are expected to boost defence companies’ order books and strengthen the manufacturing and indigenous defence ecosystem in India.
The latest acquisitions reflect India’s continued focus on modernising its defence capabilities across the Army, Navy, and Air Force while supporting domestic defence manufacturers.
