Defence stocks witnessed a sharp rally after the government cleared a massive Rs. 1.05 lakh crore worth of indigenous defence purchases. This major development is expected to boost domestic manufacturing and strengthen India’s military capabilities. The article explores how this approval has impacted key defence stocks and what it means for the sector.
Government Approves Major Defence Acquisitions
India’s Defence Acquisition Council (DAC) has approved ten capital acquisition proposals worth over Rs. 1.05 lakh crore. The Defence Minister, Rajnath Singh, chaired the meeting and cleared all proposals under the ‘Buy (Indian-IDDM)’ category. This decision highlights the government’s commitment to strengthening indigenous defence manufacturing.
The proposals include advanced Armoured Recovery Vehicles and Electronic Warfare Systems to boost mobility and combat readiness. Furthermore, the Surface-to-Air Missiles will significantly improve India’s air defence capabilities. With this, the government aims to create self-sufficiency in defence production.
Navy Preparing to Boost Maritime Protection
The Navy will also benefit from these approvals. The DAC cleared the purchase of Moored Mines and Mine Counter Measure Vessels to protect India’s maritime interests. Additionally, the Navy will procure Super Rapid Gun Mounts and Submersible Autonomous Vessels.
These systems will enhance maritime security and reduce risks to both naval and merchant vessels. Through these measures, the government plans to safeguard trade routes and national waters. The focus remains on using indigenously developed solutions, reflecting India’s push for defence self-reliance.
How Stocks Reacted
The focus on indigenous defence manufacturing has likely boosted defence sector stocks. Paras Defence led the rally, hitting the upper circuit of 10% to trade at Rs. 933.60 per share.
On the other hand, Garden Reach Shipbuilders & Engineers (GRSE) and Zen Technologies climbed over 3.2% each. Cochin Shipyard and Astra Microwave Products advanced more than 2.9%.
Mazagon Dock Shipbuilders and Bharat Dynamics (BDL) gained more than 2%, while BEML and Data Patterns rose nearly 2%. Shares of Hindustan Aeronautics (HAL), Bharat Electronics (BEL), Cyient DLM, and Solar Industries also edged up by over 1% each.
Promoting Indigenous Defence Ecosystem
All procurement falls under the Indian–Indigenously Designed, Developed, and Manufactured (IDDM) category. This move ensures Indian vendors actively participate in supplying critical defence equipment. As a result, it strengthens the domestic defence ecosystem and creates opportunities for local manufacturers.
The Ministry of Defence emphasised that this aligns with the government’s vision of self-reliance in defence. By supporting local industries, the armed forces gain customised, timely, and reliable solutions. Hence, this initiative is a significant step towards India’s long-term defence modernisation goals.
Written By Fazal Ul Vahab C H
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