Govt Approved Defense Purchases worth Rs 4.2 Lakh Crore in 2024, benefits defense stocks

The government of India approved defense acquisitions amounting to Rs 4.22 lakh crore till November this year, with major beneficiaries being domestic companies including Hindustan Aeronautics Ltd., Mazagon Dock Shipbuilders Ltd., and Larsen & Toubro Ltd.

"Defence Acquisition Council (DAC) and Defence Procurement Board (DPB), during 2024 (up to November), accorded Acceptance of Necessity (AoN) for 40 Capital Acquisition proposals amounting to Rs 4,22,129.55 crore," the Ministry of Defence said in its year-end review report on Thursday.

Out of these, orders worth Rs 3.97 lakh crore or 94% of the total outlay have been accorded to be procured from indigenous sources, it said. The orders include air defense systems and radars, fast patrol vessels, helicopters, aircraft, navigation systems, electronic warfare suites, etc.

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In the Union Budget for fiscal 2024, the Defence Ministry received an outlay of Rs 6.22 lakh crore, 5% higher than the previous year. Out of the total capital procurement budget, 75% has been earmarked for domestic industry. The government has focused on defense indigenization to advance local technological bases, minimize costly imports, and shed reliance on foreign powers.

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