India Approves ₹1.05 Lakh Crore Defence Modernization Plan: A Strategic Shift in 2025 - Defence Stories India - Trusted & Verified Defence News Portal India

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Friday, 4 July 2025

India Approves ₹1.05 Lakh Crore Defence Modernization Plan: A Strategic Shift in 2025

Introduction



On July 3, 2025, the Government of India took a major step forward in enhancing its military capabilities. The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, approved procurement proposals worth over ₹1.05 lakh crore, marking the largest-ever single-day defence acquisition clearance in India’s history.

All acquisitions fall under the Buy Indian – IDDM (Indigenously Designed, Developed and Manufactured) category, reaffirming India's push toward self-reliance in defence manufacturing.

Source:
Read the full Economic Times report


What Was Approved: Key Projects

The DAC approved a range of high-priority systems for the Army, Navy, and Air Force, aimed at modernizing and equipping India’s military forces to counter evolving security threats.

1. Mine Counter Measure Vessels (MCMVs) – Indian Navy

  • 12 vessels to be built in Indian shipyards

  • Designed to detect and neutralize naval mines

  • Enhances India’s maritime security and coastal defence operations

2. Quick Reaction Surface-to-Air Missile (QRSAM) Systems – Army and Air Force

  • Mobile air defence systems developed by DRDO

  • Capable of neutralizing aerial threats like UAVs, helicopters, and fighter aircraft

  • Increases responsiveness along border zones and combat zones

3. ISTAR Aircraft – Indian Air Force

  • ISTAR: Intelligence, Surveillance, Target Acquisition, and Reconnaissance

  • Equipped with advanced sensors, real-time intelligence capabilities

  • Provides deep surveillance, crucial for multi-domain operations

Source:
Times of India article on key purchases

4. Electronic Warfare Systems – Tri-services

  • Designed to jam and disrupt enemy communication and radar systems

  • Crucial in electronic warfare scenarios for both offence and defence

  • Enhances the survivability and effectiveness of Indian forces

5. Armoured Recovery Vehicles – Indian Army

  • Used to recover damaged tanks and armoured vehicles from war zones

  • Increases operational readiness in high-intensity battlefields

6. Unmanned Underwater Vehicles (UUVs) – Indian Navy

  • Autonomous underwater surveillance drones

  • Enhance India's undersea surveillance, mine-detection, and ISR (intelligence, surveillance, reconnaissance) operations


Why It Matters: Strategic and National Importance

This approval comes at a time when India is responding to an increasingly complex regional security environment.

Indigenization of Defence Manufacturing

  • All systems will be developed and built in India

  • Boosts domestic defence industry, including MSMEs and startups

  • Aligns with the ‘Aatmanirbhar Bharat’ initiative to reduce dependency on imports

Employment and Industry Growth

  • Will generate skilled and semi-skilled jobs in shipbuilding, aerospace, and manufacturing

  • Enhances research and innovation through DRDO and private partnerships

Regional Threat Environment

  • China's aggressive posture in the Indo-Pacific and Ladakh

  • Continued cross-border threats from Pakistan

  • Need for improved surveillance across land and maritime boundaries


Quick Summary Table

DomainSystemPurpose
NavyMine Counter Measure VesselsDetect and remove naval mines
ArmyArmoured Recovery VehiclesRecover damaged armoured platforms
Air ForceISTAR Surveillance AircraftStrategic reconnaissance and intelligence
Army & IAFQRSAM Surface-to-Air Missile SystemsMobile air defence
All ForcesElectronic Warfare SystemsDisrupt enemy communication and radar
NavyUnmanned Underwater Vehicles (UUVs)Undersea surveillance and detection

Government Statement

According to the Ministry of Defence:

“The proposals will enhance the operational preparedness of our armed forces and provide a major boost to the Make in India initiative in defence manufacturing.”

The deals are expected to be finalized and contracts awarded over the next 12 to 18 months, with some projects entering the prototype and testing phase by the end of 2025.


Full Coverage and References


Conclusion

India’s ₹1.05 lakh crore defence procurement plan marks a turning point in the country's journey toward strategic autonomy and enhanced national security. It is not merely a set of equipment purchases; it is a roadmap to modern, self-reliant, and combat-ready armed forces.

For India's defence industry, this is an unprecedented opportunity to innovate and deliver at scale. For its military, it is a much-needed leap forward. And for its citizens, it is a strong signal that the country remains committed to safeguarding its sovereignty through preparedness, professionalism, and technological excellence.

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