Indian DAC Approves ₹54,000 Crore for Military Dominance, Here's Why Pakistan Should Be Worried

New Delhi, India - Under the chairmanship of Defence Minister Rajnath Singh, the Defence Acquisition Council (DAC) on March 20, 2025, approved the Acceptance of Necessity (AoNs) for eight critical capital acquisition proposals, totalling over ₹54,000 crore. The landmark decision signals a strategic boost to the Indian Armed Forces, strengthening their capabilities across land, sea, and air with cutting-edge indigenous technology and operational enhancements.  

Indian Army’s T-90 Tanks Get a Power Boost for High-Altitude Warfare  

In a significant move aimed at enhancing the battlefield mobility of its armoured fleet, the DAC granted AoN the procurement of a 1350 HP engine to replace the existing 1000 HP power unit of the Indian Army’s T-90 tanks. This upgrade is expected to improve the power-to-weight ratio of these tanks, a crucial factor in high-altitude warfare where terrain and thinner air challenge mobility and operational effectiveness. With China’s growing military presence along the Line of Actual Control (LAC), particularly in eastern Ladakh, this development is a strategic necessity to ensure India’s armoured might remain unchallenged in extreme combat conditions.  

How This Will Help in a War Against Pakistan  

India’s T-90 Bhishma tanks are the backbone of its armoured divisions stationed along the Western border with Pakistan, particularly in Rajasthan and Punjab. The desert terrain along the Indo-Pak border demands high-speed armoured mobility, which this upgrade will enhance.

Pakistan operates the Al-Khalid series tanks, a joint development with China. However, these tanks are underpowered in high-altitude areas. Pakistan recently acquired VT-4 tanks from China, which are more advanced. The T-90 upgrade will ensure India maintains its superiority in armoured warfare.  

Furthermore, Pakistan has positioned tanks in the Gilgit-Baltistan region, and any potential conflict in Ladakh and Kashmir will involve armoured battles in mountainous areas. The increased power of T-90 tanks will provide a significant advantage in high-altitude warfare.  

Indian Navy to Strengthen Anti-Submarine Warfare with Varunastra Torpedoes  

For the Indian Navy, the DAC accorded AoN for the procurement of additional Varunastra torpedoes, an indigenously developed ship-launched anti-submarine torpedo. Developed by the Naval Science & Technological Laboratory (NSTL) under DRDO, Varunastra is a heavyweight torpedo designed to target enemy submarines with high precision, advanced acoustic homing, and deep-water engagement capabilities. With increasing submarine threats from adversaries in the Indian Ocean Region, particularly from the Chinese and Pakistani navies, this procurement will bolster India’s undersea warfare capabilities and strengthen naval deterrence.  

Countering Pakistan’s Growing Submarine Fleet  

Pakistan is modernizing its submarine fleet with eight Chinese-origin Hangor-class submarines, scheduled for delivery by 2028. The Varunastra torpedoes provide the Indian Navy with a lethal capability to hunt and destroy these submarines before they pose a serious threat.

In a war scenario, India will aim to impose a naval blockade on Pakistan, cutting off its essential trade routes. Pakistan’s submarines are its primary tool to counter this strategy, but Varunastra-equipped warships will neutralize this threat swiftly.  

Pakistan has used small submarines and divers for covert sabotage missions (e.g., 26/11 Mumbai attacks). The deployment of Varunastra torpedoes on Indian warships will provide rapid-response capabilities against Pakistani submarines attempting to infiltrate India’s coastline.  

IAF to Get New Airborne Early Warning & Control (AEW&C) Aircraft  

The DAC also approved AoN for the procurement of new Airborne Early Warning & Control (AEW&C) aircraft systems for the Indian Air Force. AEW&C systems serve as the eyes and ears of the battlefield, significantly enhancing situational awareness, detecting enemy aircraft and missile threats well beyond visual range, and coordinating air operations with real-time intelligence. This acquisition is a major force multiplier, giving the IAF an edge in air superiority by extending the reach of its fighter fleet and integrating network-centric warfare capabilities.

Countering Pakistan’s JF-17s and F-16s  

Pakistan relies on its JF-17 fighter fleet (jointly built with China) and ageing F-16s from the U.S. AEW&C systems will detect enemy fighters much earlier, allowing India’s air force to scramble fighters and intercept them before they cross into Indian territory.

Modern air warfare depends on who sees and shoots first. AEW&C aircraft coordinate with fighter jets, guiding them toward enemy aircraft and providing real-time target updates.  

This is crucial in aerial battles over Punjab, Rajasthan, and Kashmir, where both Indian and Pakistani jets engage in BVR combat. Pakistan has a large inventory of cruise missiles (Babur, Ra’ad) and ballistic missiles (Shaheen, Ghaznavi, Ghauri). AEW&C aircraft can detect and track these threats, allowing India’s missile defence systems (like the S-400) to neutralize them effectively.  

MoD Declares 2025 as ‘Year of Reforms’ to Fast-Track Defence Procurement  

Recognizing the need for a faster and more effective defence procurement process, the DAC approved new guidelines to streamline and reduce timelines at various stages of the Capital Acquisition Process. The initiative aligns with the Ministry of Defence’s declaration of 2025 as the ‘Year of Reforms’, aiming to accelerate acquisitions and ensure swift delivery of essential military assets. Given the challenges posed by regional threats and evolving security dynamics, a faster procurement cycle is crucial to maintaining a technologically advanced and combat-ready military force.  

Strategic Implications: Strengthening India’s Defence Capabilities  

This ₹54,000 crore acquisition spree reflects India’s determination to modernize its armed forces while reinforcing its commitment to self-reliance in defence manufacturing under the Atmanirbhar Bharat initiative. With adversaries rapidly advancing their military capabilities, these procurements will bridge operational gaps, enhance deterrence, and prepare the Indian Armed Forces for future conflicts.  

By upgrading the T-90 tanks, the Indian Army is securing a tactical edge in high-altitude warfare. The procurement of Varunastra torpedoes solidifies the Navy’s anti-submarine warfare capabilities, countering increasing threats in the Indian Ocean Region. The AEW&C aircraft for the IAF will redefine air dominance, allowing India to track, detect, and neutralize threats before they even reach Indian airspace.  

As India strengthens its military with homegrown technology and modernized combat systems, these approvals send a strong message to both allies and adversaries—India is not just upgrading, it is preparing for the future.