On March 20, 2025, the Defence Acquisition Council (DAC), chaired by India’s Defence Minister Rajnath Singh, approved eight capital acquisition proposals worth over ₹54,000 crore (approximately $6.5 billion USD) to bolster the country’s defense capabilities. This landmark decision reflects India’s ongoing commitment to modernizing its armed forces and enhancing operational readiness across its Army, Navy, and Air Force. Among the key approvals are significant upgrades to the Indian Army’s T-90 Bhishma tanks and the procurement of Varunastra torpedoes for the Indian Navy, alongside other advanced systems like Airborne Early Warning and Control (AEW&C) aircraft for the Indian Air Force. This move aligns with the government’s broader push for self-reliance in defense manufacturing under the “Make in India” initiative and its designation of 2025 as the “Year of Reforms” in the Ministry of Defence.
T-90 Bhishma Tank Modernisation
One of the standout approvals is the procurement of 1,350 horsepower (HP) engines to upgrade the Indian Army’s existing fleet of T-90 Bhishma tanks, which currently operate with 1,000 HP engines. The T-90 Bhishma, a mainstay of India’s mechanized forces since its induction in 2003, is a Russian-origin main battle tank adapted for Indian conditions with assistance from Russia and France. This upgrade, likely to be sourced from Russia’s Rosoboronexport (the same entity upgrading T-72 tanks), aims to enhance the tanks’ battlefield mobility, particularly in high-altitude regions such as Ladakh and Sikkim. The thin air in these areas often hampers engine performance, and the increased power-to-weight ratio from the new 1,350 HP engines will allow the T-90s to operate more effectively in such challenging terrains.
The T-90 Bhishma fleet, numbering around 1,300 active units out of a total order of 1,657, has been a critical component of India’s armored capabilities. The modernisation effort follows lessons learned from the military standoff with China along the Line of Actual Control (LAC) in Eastern Ladakh, where the tanks’ performance in high-altitude environments was tested. The upgrade not only extends the operational life of these tanks but also ensures they remain competitive against modern threats. The Heavy Vehicles Factory (HVF) in Avadi, near Chennai, which assembles and maintains these tanks under license from Russia, will play a pivotal role in implementing this upgrade, further strengthening India’s indigenous defense manufacturing ecosystem.
Varunastra Torpedoes for the Indian Navy
Another critical approval under the ₹54,000 crore package is the procurement of additional Varunastra torpedoes for the Indian Navy. The Varunastra, an indigenously developed, ship-launched heavyweight anti-submarine torpedo, is a product of the Naval Science and Technological Laboratory (NSTL) under the Defence Research and Development Organisation (DRDO). Designed to counter submarine threats, this advanced weapon system enhances the Navy’s underwater combat capabilities, a crucial factor given the increasing submarine activity by adversarial nations in the Indian Ocean Region.
The induction of more Varunastra torpedoes will bolster the Navy’s ability to detect, track, and neutralize enemy submarines, ensuring maritime security along India’s vast coastline and strategic sea lanes. This procurement underscores India’s focus on indigenous defense technologies, aligning with the “Aatmanirbhar Bharat” (Self-Reliant India) vision. The Varunastra, with its advanced guidance and propulsion systems, represents a leap forward in India’s naval warfare capabilities and complements other recent naval acquisitions, such as the INS Tushil frigate from Russia.
Broader Context of the DAC Approvals
Beyond the T-90 upgrades and Varunastra torpedoes, the DAC also greenlit the acquisition of AEW&C systems for the Indian Air Force. These systems, which enhance surveillance and combat coordination, are vital for modern warfare, exponentially increasing the effectiveness of air and ground operations. The approvals come a day after the Cabinet Committee on Security (CCS) cleared a ₹7,000-crore deal for 307 indigenous artillery guns, signaling a dual focus on modernisation and self-reliance.
As part of the 2025 “Year of Reforms,” the DAC also approved guidelines to streamline the capital acquisition process, reducing timelines from the current 96 weeks to approximately 24 weeks. This reform addresses long-standing concerns, voiced recently by Chief of Defence Staff General Anil Chauhan, about slow procurement procedures hampering the adoption of new technologies. The faster acquisition process is expected to enhance military preparedness and ensure timely induction of critical equipment.
Strategic and Economic Implications
The ₹54,000 crore investment is a strategic response to evolving security challenges, particularly along India’s northern and eastern borders with China and in the maritime domain. The modernization of the T-90 Bhishma tanks strengthens India’s ground forces in high-altitude conflict zones, while the Varunastra torpedoes reinforce naval deterrence against submarine threats. Economically, this move is poised to stimulate India’s defense industry, with the significant involvement of domestic manufacturers and facilities like HVF and NSTL. The emphasis on indigenous systems like Varunastra also reduces reliance on imports, fostering technological self-sufficiency.
