On September 3, 2024, the Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh, accorded Acceptance of Necessity (AoN) for 10 capital acquisition proposals worth ₹1,44,716 crore. In a massive boost to the 'Aatmanirbhar Bharat' initiative, 99% of these funds are earmarked for indigenous sourcing under the 'Buy (Indian)' and 'Buy (Indian-IDDM)' categories. Key approvals include Future Ready Combat Vehicles (FRCVs) and Air Defence Fire Control Radars for the Indian Army, along with Dornier-228 aircraft and Next-Generation patrol vessels for the Indian Coast Guard.
On September 3, 2024, the Defence Acquisition Council (DAC) cleared ten major capital acquisition proposals for the Armed Forces, amounting to ₹1,44,716 crore. By mandating that 99% of this budget must be spent on indigenous sources, the government has given an unprecedented push to domestic defence manufacturing. The acquisitions heavily target the modernisation of the Army's armoured capabilities and the Coast Guard's maritime surveillance.
The DAC meeting took place on September 3, 2024, in New Delhi. The decisions will have a pan-India impact, reinforcing border security along the volatile land borders with China and Pakistan, and enhancing coastal security across India's vast maritime boundary.
Strategically, inducting FRCVs will replace legacy Soviet-era tanks, equipping the Indian Army with futuristic, all-terrain, lethal main battle tanks capable of multi-layered protection. For coastal security, advanced vessels and aircraft will plug critical gaps in India's Exclusive Economic Zone (EEZ) surveillance. Economically, keeping 99% of a ₹1.45 lakh crore budget within India severely boosts the domestic defence industrial base, directly benefiting MSMEs and reducing foreign exchange outflow. This is highly relevant to the UPSC GS Paper 3 syllabus covering Indigenisation of Technology and Border Security.
📌 [BACKGROUND — verify independently] The Defence Acquisition Council (DAC) was established in 2001 following the recommendations of the Group of Ministers formed to reform the National Security System after the 1999 Kargil War. The core objective was to cut red tape and ensure the expeditious procurement of weapons. The Defence Procurement Procedure (DPP) was first promulgated in 2002 and was significantly revamped into the Defence Acquisition Procedure (DAP) in 2020 to explicitly prioritize 'Make in India' initiatives.
📌 [BACKGROUND — verify independently]
Historically, India has been one of the world's top two arms importers according to SIPRI data. However, this ₹1.45 lakh crore approval, with 99% indigenous sourcing, marks a paradigm shift towards self-reliance. It mirrors the robust domestic defence industrial ecosystems seen in the USA, France, and China, where military capital directly stimulates the national economy.
The induction of Future Ready Combat Vehicles (FRCVs) over the next decade will phase out older T-72 and T-90 tanks, drastically changing Indian armored warfare tactics to include real-time situational awareness. The massive domestic capital injection is expected to create thousands of highly skilled jobs within the Uttar Pradesh and Tamil Nadu Defence Industrial Corridors. Furthermore, the enhanced Coast Guard fleet will secure vital sea lanes against emerging asymmetric maritime threats.
Core Concept: Defence Acquisition Council (DAC)
Q1. Who among the following chairs the Defence Acquisition Council (DAC) in India? [Easy]
A) Prime Minister of India
B) Chief of Defence Staff (CDS)
C) Defence Minister (Raksha Mantri)
D) National Security Advisor (NSA)
Answer: C
Explanation: The Defence Acquisition Council (DAC) is chaired by the Defence Minister of India.
Q2. What does the acronym 'AoN' stand for in the context of India's Defence Acquisition Procedure? [Easy]
A) Agreement of Negotiation
B) Acceptance of Necessity
C) Approval of Nations
D) Allocation of Navy
Answer: B
Explanation: An Acceptance of Necessity (AoN) is the mandatory first step that clears a procurement proposal in the defence sector.
Q3. What percentage of the ₹1.45 lakh crore proposals approved by the DAC on September 3, 2024, is mandated to be sourced from indigenous categories? [Moderate]
A) 50%
B) 75%
C) 90%
D) 99%
Answer: D
Explanation: According to the Ministry of Defence, 99% of the total cost of the approved AoNs will be from indigenous sources.
Q4. The Future Ready Combat Vehicles (FRCVs) cleared by the DAC are primarily intended to modernise which segment of the Indian Armed Forces? [Moderate]
A) Indian Air Force's fighter fleet
B) Indian Army's tank fleet
C) Indian Navy's submarine fleet
D) Indian Coast Guard's patrol fleet
Answer: B
Explanation: The FRCVs are futuristic Main Battle Tanks meant to modernise the tank fleet of the Indian Army.
Q5. The Forward Repair Team (Tracked) equipment, approved for in-situ repair during mechanised operations, is designed and developed by which entity? [Moderate]
A) Hindustan Aeronautics Limited (HAL)
B) Defence Research and Development Organisation (DRDO)
C) Armoured Vehicles Nigam Limited (AVNL)
D) Mazagon Dock Shipbuilders Limited (MDL)
Answer: C
Explanation: The equipment is designed and developed by Armoured Vehicles Nigam Limited (AVNL), a defence PSU.
Q6. Which specific aircraft procurement was approved by the DAC to enhance the surveillance capabilities of the Indian Coast Guard? [Tricky]
A) P-8I Poseidon
B) C-130J Super Hercules
C) Dornier-228
D) Tejas Mk-1A
Answer: C
Explanation: The DAC approved the procurement of Dornier-228 aircraft for the Indian Coast Guard.
Q7. Under the Defence Acquisition Procedure (DAP) 2020, what does 'IDDM' stand for in the highest priority procurement category? [Tricky]
A) Internally Designed, Developed and Manufactured
B) Indigenously Designed, Developed and Manufactured
C) Indian Defence Development and Manufacturing
D) Integrated Defence Design and Manufacturing
Answer: B
Explanation: 'Buy (Indian-IDDM)' stands for Indigenously Designed, Developed and Manufactured, which is the most preferred category for defence procurement.
Q8. The Defence Acquisition Council (DAC) was established in the year 2001 following the recommendations of a Group of Ministers formed after which major conflict? [Tricky]
A) 1962 Sino-Indian War
B) 1971 Indo-Pak War
C) 1999 Kargil War
D) 2017 Doklam Standoff
Answer: C
Explanation: The DAC was formed post the 1999 Kargil War to reform the national security system and expedite procurement.
PYQ 1:
With reference to the Defence Acquisition Procedure (DAP) 2020, which of the following categories is given the highest priority for capital acquisitions by the Ministry of Defence?
A) Buy (Global - Manufacture in India)
B) Buy (Indian)
C) Buy and Make (Indian)
D) Buy (Indian-IDDM)
Answer: D
Explanation: The 'Buy (Indian-IDDM)' category is accorded the highest priority under DAP 2020 to promote indigenous design and manufacturing.
PYQ 2:
Consider the following statements regarding the Defence Acquisition Council (DAC):
Which of the above statements is/are correct?
A) 1 and 2 only
B) 2 only
C) 2 and 3 only
D) 1, 2, and 3
Answer: B
Explanation: Statement 1 is incorrect (it is chaired by the Defence Minister). Statement 2 is correct. Statement 3 is incorrect (AoN is only the first step, not the final contract).
PYQ 3:
Match the following defence equipment cleared by the DAC with their intended beneficiary force:
Choose the correct code:
A) 1-b, 2-a, 3-c
B) 1-a, 2-b, 3-c
C) 1-c, 2-a, 3-b
D) 1-b, 2-c, 3-a
Answer: A
Explanation: FRCVs and Air Defence Radars are for the Indian Army, while the Dornier-228 aircraft are for the Indian Coast Guard.
Question 1 (150 words): Discuss the significance of the 'Buy (Indian-IDDM)' category in India's Defence Acquisition Procedure (DAP) 2020, referencing the recent DAC approvals.
The 'Buy (Indian-IDDM)' category—standing for Indigenously Designed, Developed and Manufactured—is the highest priority procurement route under the Defence Acquisition Procedure (DAP) 2020. Its primary significance lies in ensuring that intellectual property rights (IPR) of critical military technology remain within India, fostering genuine technological sovereignty.
The recent Defence Acquisition Council (DAC) approval of ₹1.45 lakh crore in September 2024 perfectly illustrates this paradigm shift. By mandating that 99% of these capital proposals, including Future Ready Combat Vehicles (FRCVs) and Air Defence Radars, be sourced indigenously, the government is guaranteeing a massive capital infusion into domestic MSMEs and defence PSUs like Armoured Vehicles Nigam Limited. This policy not only curtails the massive foreign exchange drain associated with arms imports but also transforms India from a passive buyer into a global hub for defense manufacturing and innovation.
Question 2 (250 words): "India is aggressively pivoting from being a net importer of defence equipment to building a robust domestic defence industrial base." Evaluate this statement in light of the recent capital acquisition approvals by the Defence Acquisition Council (DAC).
For decades, India has borne the strategic vulnerability of being one of the world's largest importers of defence equipment. However, the recent approvals by the Defence Acquisition Council (DAC) underscore a decisive pivot towards building a robust domestic defence industrial base. In September 2024, the DAC, chaired by the Defence Minister, accorded Acceptance of Necessity (AoN) for proposals worth ₹1.45 lakh crore. Crucially, a staggering 99% of this budget is reserved for indigenous procurement.
This transition is driven by the structural reforms embedded in the Defence Acquisition Procedure (DAP) 2020, which strictly prioritizes the 'Buy (Indian-IDDM)' category. The recent approvals reflect a maturity in domestic manufacturing capabilities. For instance, the Indian Army's tank fleet will be modernized using domestically produced Future Ready Combat Vehicles (FRCVs), phasing out reliance on foreign-origin platforms. Similarly, the Indian Coast Guard's maritime surveillance is being fortified with Dornier-228 aircraft manufactured by HAL, alongside Next-Generation Patrol Vessels.
Furthermore, leveraging corporatized Defence PSUs—such as Armoured Vehicles Nigam Limited for Forward Repair Team vehicles—demonstrates how past institutional reforms are currently yielding operational dividends. This massive domestic capital injection does more than just secure borders; it acts as an economic multiplier, generating highly skilled employment in the Defence Industrial Corridors. While challenges in advanced R&D and timely delivery remain, these DAC approvals conclusively prove that India's defense strategy has shifted from external dependency to internal capacity building under the 'Aatmanirbhar Bharat' vision.
For Prelims, examiners focus heavily on acronyms like AoN, IDDM, and the specific ministries/bodies involved (like DAC composition). For Mains, this topic is high-yield for GS Paper 3 (Security & Indigenisation of Technology). Use the "99% indigenous sourcing of ₹1.45 lakh crore" as a powerful data point in any essay or answer about 'Make in India' or self-reliance. In Interview rounds, candidates should be prepared to discuss whether forcing domestic procurement compromises the immediate combat readiness of the Armed Forces if domestic R&D delays occur. High-Probability Prediction: A Prelims statement-based question asking to arrange the steps of defence procurement, starting with the grant of AoN.