Indian defence manufacturing companies are set to gain momentum after the Defence Acquisition Council (DAC) approved capital acquisition proposals worth approximately ₹79,000 crore. The approvals span major procurements for the Army, Navy, and Air Force, reinforcing the government’s focus on boosting indigenous defence production under the Aatmanirbhar Bharat initiative.
The new approvals are expected to significantly strengthen India’s military capabilities while generating a large pipeline of orders for domestic defence firms. Most of the projects fall under the Buy (Indian–Indigenously Designed, Developed, and Manufactured) category, ensuring deeper local industry participation and reduced import dependency.
Key Beneficiaries Across Armed Forces
For the Indian Army, the DAC cleared the procurement of the Nag Missile System (Tracked) Mk-II (NAMIS), which could benefit Bharat Dynamics Ltd (BDL) through potential orders of around ₹2,000 crore. The system will enhance India’s anti-tank warfare and battlefield fortification capabilities.
The Army has also approved the Ground-Based Mobile ELINT System (GBEMS) to provide real-time electronic intelligence on enemy emitters, a move expected to benefit Bharat Electronics Ltd (BEL) and Astra Microwave Products Ltd (Astra Micro). Additionally, BEML Ltd is likely to gain from the acquisition of High Mobility Vehicles (HMVs) fitted with material-handling cranes for logistics and mobility support.
Major Boost for Naval Modernisation
For the Indian Navy, the DAC cleared large-scale shipbuilding and weapons procurement projects. Mazagon Dock Shipbuilders, Garden Reach Shipbuilders & Engineers (GRSE), Cochin Shipyard, and Larsen & Toubro (L&T) are expected to benefit from Landing Platform Dock (LPD) orders valued at up to ₹60,000 crore. These amphibious assault vessels will enhance India’s joint operational capability across maritime and ground forces.
The approval for the 30 mm Naval Surface Gun (NSG) project is expected to support BHEL and GRSE, while BHEL could also contribute to supplying smart ammunition for the 76 mm Super Rapid Gun Mount. Bharat Dynamics may gain further from orders worth ₹500–1,000 crore for Advanced Light Weight Torpedoes, and BEL, Astra Micro, and Data Patterns are likely to receive fresh contracts for the Electro Optical Infra-Red Search and Track (IRST) System used in maritime surveillance.
Defence Stocks in Focus
- Bharat Dynamics Ltd (BDL) – missile systems and torpedoes
- Bharat Electronics Ltd (BEL) – electronic warfare, surveillance systems
- Astra Microwave Products Ltd (Astra Micro) – radar and ELINT systems
- BEML Ltd – mobility and logistics vehicles
- Mazagon Dock Shipbuilders Ltd (MDL) – naval shipbuilding projects
- Garden Reach Shipbuilders & Engineers (GRSE) – amphibious and gun systems
- Cochin Shipyard Ltd (CSL) – shipbuilding and repair
- Larsen & Toubro (L&T) – naval platforms and defence systems integration
- Bharat Heavy Electricals Ltd (BHEL) – naval guns and smart ammunition
- Data Patterns (India) Ltd – electronic systems and sensor integration
Outlook
Analysts suggest the DAC’s ₹79,000 crore approval pipeline could significantly improve order inflows for domestic defence players, bolstering sectoral growth over the medium term. The move reflects India’s continued commitment to achieving strategic autonomy through indigenous design, development, and manufacturing, while opening fresh opportunities for leading defence and aerospace companies.
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