Defence Acquisition Council (DAC): Role, Structure, Functions and Significance

Defence Acquisition Council (DAC) is India’s top defence procurement body responsible for Acceptance of Necessity, promoting indigenous manufacturing and strengthening armed forces’ capabilities.

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The Defence Acquisition Council (DAC) is the highest decision-making body of the Government of India responsible for defence capital acquisitions. Established to ensure transparency, efficiency, and strategic coherence in defence procurement, the DAC plays a pivotal role in strengthening the operational capabilities of the Indian Army, Navy, and Air Force.

In recent years, DAC approvals—often running into tens of thousands of crores—have become central to India’s defence modernisation and Atmanirbhar Bharat agenda.

What is the Defence Acquisition Council (DAC)?

The Defence Acquisition Council is a statutory body under the Ministry of Defence (MoD) that grants Acceptance of Necessity (AoN) for defence procurement proposals.

It evaluates and approves capital acquisition proposals before they move to detailed technical and commercial evaluation stages.

Chairperson: Defence Minister of India
Headquarters: New Delhi

Background and Establishment of DAC

The DAC was established in 2001 following the recommendations of the Kargil Review Committee, which highlighted systemic weaknesses in defence preparedness and procurement processes.

The objective was to:

Streamline defence acquisitions
Improve civil-military coordination
Reduce delays and cost overruns

Composition of the Defence Acquisition Council

The DAC consists of senior political, military, and bureaucratic leadership, ensuring balanced decision-making.

Members of DAC

Defence Minister (Chairperson)
Chief of Defence Staff (Permanent Invitee)
Defence Secretary
Secretary (Defence Production)
Secretary (Defence Research & Development)
Secretary (Ex-Servicemen Welfare)
Vice Chiefs of Army, Navy, and Air Force
Financial Adviser (Defence Services)

This composition ensures integration of operational needs, financial prudence, and indigenisation goals.

Key Functions of the Defence Acquisition Council

1. Granting Acceptance of Necessity (AoN)

AoN is the first and most critical stage of defence procurement. Without DAC approval, no capital acquisition can proceed.

2. Prioritising Capability Development

DAC ensures that acquisitions align with:

Threat assessments
Long-term Integrated Perspective Plan (LTIPP)
Jointness among services

3. Promoting Indigenous Defence Manufacturing

DAC categorises acquisitions under:

Buy (Indian – IDDM)
Buy (Indian)
Buy and Make (Indian)
Buy and Make
Buy (Global)

This directly supports Make in India and Atmanirbhar Bharat initiatives.

4. Oversight of Capital Procurement

The DAC ensures compliance with the Defence Acquisition Procedure (DAP), replacing the earlier Defence Procurement Procedure (DPP).

Defence Acquisition Procedure (DAP) and DAC

The Defence Acquisition Procedure (DAP) provides the operational framework for DAC decisions. The latest versions emphasise:

Indigenous content thresholds
MSME and startup participation
Technology transfer and innovation

DAC approvals are thus guided by both strategic urgency and domestic industrial capacity.

Recent DAC Approvals and Their Significance

Recent DAC approvals have focused on:

Loiter munitions and counter-drone systems
Pinaka long-range guided rockets
Naval logistics and harbour infrastructure
Aerospace safety and surveillance systems

Such decisions reflect evolving security challenges including:

Drone warfare
Precision strike requirements
Maritime security
Network-centric warfare

Strategic Importance of the Defence Acquisition Council

Strengthening National Security

DAC ensures that the armed forces receive modern, mission-critical equipment in a timely manner.

Enhancing Jointness

Through integrated planning, DAC promotes interoperability among the three services.

Reducing Import Dependence

By prioritising indigenous procurement, DAC reduces India’s reliance on foreign defence suppliers.

Boosting Defence Exports

A strong domestic defence ecosystem strengthens India’s position as an emerging defence exporter.

DAC and Atmanirbhar Bharat in Defence

The DAC is a cornerstone of India’s self-reliance strategy in defence:

Encourages domestic design and development
Supports DRDO-industry collaboration
Provides market assurance to Indian manufacturers

This policy shift is transforming India from a major arms importer to a defence manufacturing hub.

Challenges Faced by DAC

Despite reforms, DAC faces challenges such as:

Lengthy procurement timelines
Balancing urgency with indigenisation
Rapidly evolving technology landscape
Cost escalation in high-end systems

Continuous procedural refinement and institutional capacity building remain essential.

Future Outlook of Defence Acquisition Council

Going forward, DAC is expected to:

Integrate emerging technologies like AI, drones, and cyber systems
Strengthen public-private partnerships
Fast-track critical acquisitions under emergency powers
Enhance transparency through digital procurement systems

Conclusion

The Defence Acquisition Council is the backbone of India’s defence procurement architecture. By aligning operational requirements with fiscal discipline and indigenous capability, DAC plays a decisive role in shaping India’s military preparedness.

As India navigates complex security challenges, a robust and responsive DAC remains essential for achieving strategic autonomy, technological superiority, and national security resilience.