Capital procurement of defence equipment is undertaken from various domestic as well as foreign vendors. During the last three financial years and the current year, 72 contracts / agreements involving a total value of Rs. 1,29,918.19 crore have been signed for procurement of defence equipment from foreign countries, including for procurement of 36 fighter aircraft from France. In addition, 111 contracts involving a total value of Rs. 94,020.67 crore have been signed with Indian vendors for procurement of defence equipment during the same period.
Capital procurement of defence equipment is carried out under the provisions of the extant Defence Procurement Procedure (DPP).