India’s Defence Acquisition Council Approves $39.7 Billion Procurements: Rafale Jets, S-400 Missiles, Naval Upgrades

India’s Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, has approved a record-breaking defence procurement package worth ₹3.60 lakh crore on February 12, 2026. This marks one of the largest modernization pushes in India’s military history.

Key Highlights of the Procurement

• 114 Rafale Multi-Role Fighter Aircraft (MRFA)
  - A government-to-government deal with France’s Dassault Aviation.
  - Addresses squadron shortages in the Indian Air Force.
  - Most jets will be manufactured in India with significant indigenous content, boosting self-reliance and employment.
• 288 S-400 Missiles from Russia
  - Includes 120 short-range and 168 long-range missiles.
  - Strengthens India’s air defence capabilities after extensive use during Operation Sindoor in 2025.
• Naval and Coast Guard Upgrades
  - Procurement of P-8I maritime patrol aircraft.
  - Overhaul of T-72 tanks and Armoured Recovery Vehicles (ARVs).
  - Advanced surveillance systems and upgrades for the Indian Coast Guard.
• Indigenous Manufacturing Focus
  - Strong emphasis on “Make in India” with local industry participation.
  - Expected to boost R&D, create jobs, and extend the life of existing platforms.

Strategic Significance

• Enhances combat readiness across Army, Navy, and Air Force.
• Positions India as a stronger regional power amidst evolving geopolitical challenges.
• Marks a force multiplier moment, with experts calling it a game-changer for national security.

India’s Defence Procurement Budget: 2025 vs 2026

In 2025, India’s Defence Acquisition Council (DAC) approved procurement proposals worth ₹54,000 crore. These included 307 indigenously designed artillery guns (₹7,000 crore) and other modernization projects, alongside reforms to shorten procurement timelines by 10–15%.

Separately, the Union Budget for FY 2025–26 allocated ₹6.81 lakh crore to the Ministry of Defence, with a significant portion earmarked for modernization and procurement. This was later raised to ₹7.85 lakh crore in FY 2026–27, marking a 15.19% increase over the previous year.

Comparison: 2025 vs 2026 Procurement Approvals

Year	DAC Procurement Approvals	Union Budget Defence Allocation	Key Focus Areas
2025	₹54,000 crore	₹6.81 lakh crore	Artillery guns, reforms to speed procurement
2026	₹3.60 lakh crore