MoD Signs ₹2,500 Cr Contracts for NAMIS Tracked System & Light Vehicles

One of the key contracts involves the procurement of the Nag Missile System (NAMIS) - Tracked (Tr) version, a next-generation anti-tank guided missile platform.

In a major move to strengthen the Indian Armed Forces and promote indigenous defence manufacturing, the Ministry of Defence (MoD) signed significant procurement contracts on March 27, 2025, in New Delhi. The contracts, totalling approximately ₹2,500 crore, were signed with three Indian companies: Armoured Vehicle Nigam Limited (AVNL), Force Motors Ltd, and Mahindra & Mahindra Ltd. The deals were inked under the "Buy (Indian–Indigenously Designed, Developed, and Manufactured)" category, in the presence of Defence Secretary Shri Rajesh Kumar Singh.

Big Push for Indigenously Developed Anti-Tank Weapon System

One of the key contracts involves the procurement of the Nag Missile System (NAMIS) - Tracked (Tr) version, a next-generation anti-tank guided missile platform. This state-of-the-art system, developed by the Defence Research and Development Laboratory (DRDL) under the Defence Research and Development Organisation (DRDO), is valued at ₹1,801.34 crore.

The NAMIS (Tr) system is a significant technological leap in India's defence capabilities. Designed to augment the anti-armour capabilities of the Mechanised Infantry, the NAMIS (Tr) will play a crucial role in modernising and strengthening India’s armoured warfare strategy.

The weapon system is equipped with a "fire-and-forget" capability, meaning it can automatically guide itself to the target after being launched, requiring no further input from the operator. This allows for rapid engagement and minimal exposure of the launching vehicle in a combat zone. The system is also integrated with a sophisticated sighting mechanism that enhances targeting accuracy and operational lethality.

NAMIS (Tr) is expected to provide the Indian Army with a significant edge in both conventional and hybrid warfare scenarios, especially against enemy armoured formations. The tracked version ensures superior off-road mobility and survivability, making it highly effective across diverse operational terrains—from deserts and plains to mountainous regions.

This acquisition represents a milestone in India's ongoing efforts to replace outdated military hardware with advanced indigenous systems, aligning with the long-term goals of force modernisation and self-reliance in defence.

Procurement of 5,000 High-Mobility Light Vehicles

In addition to the NAMIS contract, the Ministry of Defence has awarded contracts to Force Motors Ltd and Mahindra & Mahindra Ltd for the supply of around 5,000 Light Vehicles for use by the Indian Armed Forces. These modern vehicles are engineered using contemporary automotive technology and designed to endure the rigours of varied terrains and extreme weather conditions.

Each vehicle features an enhanced engine capable of supporting a payload of 800 kg, ensuring they can effectively carry troops, supplies, or specialized equipment as required. Their versatility and durability make them suitable for a wide range of military operations, from border patrols and logistics support to tactical troop movements in forward areas.

These light vehicles will significantly enhance the Armed Forces’ tactical mobility and logistical efficiency, ensuring faster response times and greater operational flexibility. Their deployment is expected to reduce dependency on older, less efficient vehicle fleets.

Boost to Aatmanirbhar Bharat and Employment Generation

Both procurements fall under the ambit of the Indian Government's ‘Aatmanirbhar Bharat’ (Self-Reliant India) initiative, which seeks to promote domestic production, reduce reliance on foreign defence imports, and build a robust indigenous defence manufacturing ecosystem.

By awarding these contracts to Indian companies, the MoD aims to foster innovation, improve technological capabilities, and stimulate economic growth within the defence sector. The involvement of private industry leaders such as Mahindra and Force Motors, alongside public sector AVNL, underscores the government’s commitment to a collaborative and inclusive approach to defence production.

Moreover, these large-scale projects are expected to create a ripple effect in terms of employment generation, both directly within the manufacturing companies and indirectly through a wide network of Micro, Small and Medium Enterprises (MSMEs) involved in the supply of components and sub-systems. This aligns with the government’s broader vision of using defence investments as a catalyst for industrial development and job creation.

Strategic and Operational Implications

From a strategic standpoint, these procurements mark a pivotal step toward transforming India's military into a more agile, modern, and self-reliant force. The integration of advanced indigenous systems like NAMIS (Tr) will significantly strengthen deterrence capabilities along India's borders, especially in light of recent regional security challenges.

The dual focus on lethality (through missile systems) and mobility (through light vehicles) reflects a well-rounded approach to capability building, ensuring that Indian troops are not only well-protected but also able to manoeuvre swiftly in operational environments.

Looking Ahead

With these contracts, the Ministry of Defence has reiterated its resolve to modernise the armed forces while nurturing indigenous industries. As India continues to advance in defence R&D and manufacturing, such investments lay the foundation for long-term strategic autonomy.

The successful induction of NAMIS (Tr) and the new fleet of light vehicles will not only empower the Indian Armed Forces but also serve as a testimony to India’s growing technological and industrial prowess on the global defence stage.