In a landmark move aimed at fortifying India’s defence posture amid rising regional tensions, the **Defence Acquisition Council (DAC)** has approved a colossal **Rs 79,000 crore defence deal** on December 29, 2025. This isn’t just another budget line—it’s a strategic leap forward in the modernisation of the Indian Army, Navy, and Air Force, with a sharp focus on indigenous capabilities and next-generation warfare tools like loiter munition systems, advanced radars, and drone countermeasures.
As global security dynamics shift and asymmetric threats grow, this approval signals India’s intent to not just keep pace—but to lead. Let’s unpack what’s in this mega military package, why these specific systems were chosen, and what it means for national security in 2026 and beyond.
Table of Contents
- What Is the Rs 79,000 Crore Defence Deal?
- Key Systems Approved Under the Rs 79,000 Crore Defence Deal
- Why Loiter Munition Is a Game-Changer
- Indigenous Push: How Much Is ‘Made in India’?
- Strategic Implications for India’s Neighbourhood
- What Comes Next: Implementation Timeline
- Conclusion: A New Era of Indian Military Tech
- Sources
What Is the Rs 79,000 Crore Defence Deal?
Approved by the DAC—India’s apex body for military procurement—the **Rs 79,000 crore defence deal** represents one of the largest single-day capital acquisition clearances in recent years. Crucially, over **90% of the approved systems are to be sourced from Indian vendors**, aligning with Prime Minister Modi’s ‘Atmanirbhar Bharat’ (Self-Reliant India) vision in defence.
The move comes at a time when the armed forces are actively upgrading their arsenals to counter evolving threats, including drone swarms, precision strikes, and electronic warfare. The DAC, chaired by Defence Minister Rajnath Singh, emphasized that these acquisitions are aimed at “enhancing operational readiness and tactical superiority across all theatres.”
Key Systems Approved Under the Rs 79,000 Crore Defence Deal
The package is a carefully curated mix of offensive, defensive, and surveillance technologies. Here’s a breakdown of the major acquisitions:
- Loiter Munition Systems: Often called “suicide drones,” these are kamikaze-style UAVs that hover over a target area before striking with pinpoint accuracy. The Army and Air Force will jointly induct multiple variants for different ranges and payloads.
- Advanced Radars: New-generation battlefield surveillance and weapon-locating radars will be deployed along the northern and western borders to detect enemy artillery fire and troop movements in real time.
- Guided Rocket Ammunition: Precision-guided rockets for the Pinaka multi-barrel rocket launcher system, significantly improving range (beyond 75 km) and accuracy against hardened targets.
- Drone Detection and Counter-Drone Systems: Integrated systems capable of detecting, identifying, and neutralising hostile drones—critical after repeated incursions along the Punjab and Jammu borders.
- Communication and Encryption Gear: Secure tactical communication systems for network-centric warfare, ensuring seamless coordination between units in high-electronic-jamming environments.
Why Loiter Munition Is a Game-Changer
Loiter munition has redefined modern warfare. Unlike traditional missiles, these systems can loiter in the air for hours, waiting for the optimal moment to strike. They’re cost-effective, highly precise, and reduce collateral damage.
India’s interest in this technology surged after witnessing their extensive use in the Ukraine war. Indigenous players like Skydio India, ideaForge, and DRDO’s ALFA-S are already in advanced development phases. The DAC’s approval accelerates their induction, potentially giving India a tactical edge in mountainous or urban combat zones where real-time targeting is crucial.
According to a 2024 report by the Stockholm International Peace Research Institute (SIPRI), global spending on loitering munitions has grown by over 300% since 2020—proof that India is right on trend.
Indigenous Push: How Much Is ‘Made in India’?
This deal is a massive win for India’s domestic defence industry. The DAC mandated that **all approved systems must be procured under the ‘Buy (Indian-IDDM)’ and ‘Buy (Indian)’ categories**, which prioritize Indian design, development, and manufacture.
Companies like **Bharat Electronics Ltd (BEL)**, **Larsen & Toubro**, **Tata Advanced Systems**, and numerous MSMEs are expected to benefit. This not only reduces import dependence but also builds a resilient defence supply chain—a lesson hard-learned during past geopolitical standoffs.
[INTERNAL_LINK:defence-indigenisation-india] For small and mid-sized defence tech startups, this deal opens doors to long-term contracts and R&D partnerships with DRDO and major OEMs.
Strategic Implications for India’s Neighbourhood
While officially framed as a defensive upgrade, the **Rs 79,000 crore defence deal** sends a clear message to regional adversaries. The focus on precision strike (loiter munitions, guided rockets) and counter-drone tech directly addresses threats from both western and northern borders.
In particular, the enhanced radar coverage and drone-jamming capabilities will make it far harder for hostile actors to conduct surveillance or drop contraband via UAVs. Experts suggest this package is part of a broader deterrence strategy, ensuring India can respond swiftly and decisively to any provocation.
What Comes Next: Implementation Timeline
Now that the DAC has given the nod, the next step is contract finalisation with Indian vendors. Here’s the expected rollout:
- Q1–Q2 2026: Contracts signed; initial batches of drone detection systems and radars delivered to forward-deployed units.
- Q3 2026: First squadron of loiter munition systems handed over to the Indian Army’s new Integrated Battle Groups (IBGs).
- 2027: Full operational capability for all systems, including guided Pinaka rockets and secure comms networks.
Speed is of the essence—the government has directed the Department of Military Affairs to fast-track trials and testing to avoid the delays that plagued earlier acquisitions.
Conclusion: A New Era of Indian Military Tech
The **Rs 79,000 crore defence deal** is more than a procurement list—it’s a declaration of intent. By betting big on homegrown defence tech, India is not just strengthening its borders but also catalysing a high-tech manufacturing revolution. For citizens, this means greater security. For the industry, it’s a once-in-a-generation opportunity. And for adversaries, it’s a clear signal: India is arming itself for the wars of tomorrow, not the battles of yesterday.
Sources
“Missiles, radars & loiter munition: Centre clears mega Rs 79K cr defence deal; what’s on list”, Times of India, December 29, 2025. https://timesofindia.indiatimes.com/…
“Defence Acquisition Council Approvals – December 2025”, Press Information Bureau (PIB), Government of India.
“Trends in World Military Expenditure, 2024”, Stockholm International Peace Research Institute (SIPRI). https://www.sipri.org/