India Gives Initial Clearance to $22.84 Billion in Military Purchases

₹2.12 lakh crore in proposed military purchases received initial clearance on Monday, with about 82% of planned spending set to go to Indian industry. The Defence Acquisition Council, chaired by Defence Minister Rajnath Singh, approved equipment for the Army, Navy and Air Force. The list is broad, from tracked artillery guns to drones and helicopters. But the decision does not mean the forces can order or receive them yet. ^1,3

The list includes high-mobility vehicles, a tracked gun system, air-defence weapons, counter-drone equipment and several types of drones for the Army. It also includes light multi-role helicopters for Army and Air Force missions, including reconnaissance, combat, rescue and disaster relief. Navy plans include a system designed to draw anti-ship missiles away from ships, as well as other major naval platforms. The Air Force can seek helicopters, weapons, air-defence systems and weather radars. ^1,8

The 82% domestic share could direct a large part of the proposed spending to Indian manufacturers. The mix of equipment reflects the services’ focus on mobility, surveillance and protection from aerial threats. One major Army and Air Force proposal is for 200 light helicopters, worth ₹20,000 crore, to replace ageing Cheetah and Chetak fleets. Tata with Airbus, Adani with Leonardo, and US-based Bell are named as possible contenders, but no winner has been chosen. ^2,4

No winner has been chosen because Acceptance of Necessity is only an initial approval, not a contract. The proposals must go through more steps before suppliers, final costs and delivery dates are settled. For the helicopter plan, the next key decisions are how officials assess the bids and whether they split the contract between the lowest and second-lowest bidders. Defence officials have indicated that this may happen. ^3,4