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What is the Defence Acquisition Council (DAC)?

Oct. 27, 2026

The Defence Acquisition Council (DAC) recently accorded Acceptance of Necessity (AoN) for capital acquisition proposals worth approximately ₹2.12 lakh crore for the three services, with about 82% of the procurements to be sourced from the domestic industry.

About Defence Acquisition Council (DAC):

  • It is the highest decision-making body of India's Ministry of Defence on procurement.
  • Main Objective: To ensure expeditious procurement of the approved requirements of the armed forces in terms of capabilities sought and time frame prescribed by optimally utilizing the allocated budgetary resources.
  • Formation: It was formed after the Group of Minister’s recommendations on ‘Reforming the National Security System’, in 2001, post-Kargil War (1999).
  • Composition:
    • The Defence Minister is the chairman of DAC.
    • Its members include senior civil and military leaders of the Ministry of Defence, among them the Chief of Defence Staff (CDS) and chiefs of the Army, Navy, and Air Force; the Defence Secretary; and other senior officials responsible for finance, production, and acquisition.
  • Functions:
    • Give in-principle approval to long-term perspective planning, as applicable under the current framework.
    • Categorisation of the acquisition proposals relating to ‘Buy’, ‘Buy & Make’, and ‘Make’.
    • Look into issues relating to single vendor clearance.
    • Take decisions regarding the Transfer of Technology under the ‘Buy & Make’ category of acquisition proposals.
    • Field trial evaluation.
  • The categorisation decisions taken by the DAC are especially significant, because they influence whether contracts flow to Indian designers and manufacturers or to foreign suppliers.
  • Through its approvals, the DAC effectively sets the direction of India's military modernisation.

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