Subhechcha Ganguly 
The Narendra Modi-led government is poised to approve a landmark acquisition of 26 Rafale-Marine fighter jets this month, a $7.6 billion deal aimed at enhancing the Indian Navy’s strike capabilities aboard its aircraft carriers. In parallel, the Defence Ministry is preparing to greenlight the procurement of three new diesel-electric submarines to strengthen India’s maritime defence posture in the Indian Ocean Region.
This move aligns with a record-breaking capital defence expenditure of over Rs2 lakh crore for 2024–25, continuing the trend of increased military modernization. HT has learned that the Rafale-M deal is likely to be cleared by the Cabinet Committee on Security (CCS) later this month.
Between 2024 and 2025, the Defence Ministry signed 193 contracts worth ₹2.09 lakh crore, nearly doubling the previous year’s outlay. Since taking office in 2014, the Modi government has signed 1,096 defence contracts valued at approximately ₹9.46 lakh crore.
For the first time in five years, the defence ministry fully utilized its capital budget, with zero fund surrender — a stark contrast to earlier years where thousands of crores went unspent.
With rising regional tensions, including China’s infrastructure build-up along the 3,488 km Line of Actual Control (LAC) and instability in neighbouring countries, the Indian government is prioritizing military preparedness under its ‘Aatmanirbhar Bharat’ vision. Key defence PSUs like HAL and BEL, as well as DRDO, have been directed to expedite indigenous production with stricter accountability and time-bound project management.
