Defense Stocks Poised to Gain from ₹67,000 Crore DAC Approval
The Indian Defence Acquisition Council (DAC), led by Defence Minister Rajnath Singh, approved capital acquisition proposals worth approximately ₹67,000 crore on August 5, 2025, aimed at significantly enhancing the operational readiness of the Indian Army, Navy, and Air Force. Key procurements include thermal imager-based driver night sights for BMP infantry vehicles to improve night driving for the Army, and Compact Autonomous Surface Craft, upgraded BrahMos fire control systems, and an upgraded BARAK-1 missile defence system for the Navy. The Air Force will receive mountain radars for enhanced surveillance along mountainous borders and an upgraded SPYDER/SAKSHAM weapon system integrated with the Integrated Air Command and Control System (IACCS). A tri-service acquisition of Medium Altitude Long Endurance (MALE) Remotely Piloted Aircraft (RPAs) was also approved, enhancing long-range surveillance and combat capabilities. Additional approvals include sustenance support for C-17 and C-130J fleets and maintenance of the S-400 long-range air defence missile system. Major beneficiaries expected are Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL), Hindustan Aeronautics Limited (HAL), Larsen & Toubro (L&T), Godrej Aerospace, Adani Defence, Astra Microwave, and Data Patterns. Despite a recent dip in the Nifty India Defence Index by about 11% over the past month, these approvals underscore the government’s commitment to modernizing India’s defense capabilities and bolstering the domestic defense industry under the “Buy (Indian)” category, potentially driving growth for defense stocks and enhancing national security readiness. The strategic acquisitions span advanced surveillance, missile systems, autonomous naval crafts, and enhanced combat vehicles, firmly supporting India’s defense modernization agenda through 2025.