Defence Stocks Back In Focus After Big DAC Approvals And Make In India Push

The government has stepped up India’s defence modernisation drive, with the Defence Acquisition Council approving proposals worth nearly ₹80,000 crore in its final meeting of 2025. The clearances focus on enhancing combat readiness across the Army, Navy and Air Force, including upgrades to tanks, helicopters, missile systems, drones and advanced warfare equipment. A strong emphasis on Make in India, Atmanirbhar Bharat and MSME participation continues to reshape the sector, supported by extended emergency procurement windows and fast-tracked acquisitions. Analysts note that while defence companies have long had strong order books, geopolitics and rising indigenisation have lifted both growth prospects and valuations. Defence stocks reacted positively to the news, keeping the sector firmly in focus as India heads into 2026 with sustained military spending momentum.