Amidst the worsening security scenario in the geopolitical region, India has embarked on a major tranche of defence procurements – worth nearly $9 billion (Rs 790 billion). The deal cleared by the defence acquisition council chaired by defence minister Rajnath Singh in December 2025 involves purchase of missiles, rockets, radar systems, drones and support platforms, all of which are expected to strengthen the nation’s defence capabilities across the three major spectrums — the Army, Navy and Air Force. India is facing growing threats to its integrity from multiple sources in the region, most notably from China, Pakistan and now even Bangladesh, not to speak of the terrorist outfits based out of Pakistan. China keeps giving pinpricks to India through its machinations along the northern border regions, as was evident in the Galwan Valley offensive and the confrontation that India had to have with the PLA in the eastern sector, very close to the sensitive Chicken’s Neck region, vis-à-vis the Doklam standoff. Simultaneously, China is allying with Pakistan in troubling India through several bilateral engagements between Beijing and Islamabad/Rawalpindi. To which is added a new security threat to India in the form of linkages between Bangladesh’s interim government and Pakistani players, not excluding the ISI and Islamist forces. India now faces serious security threats from three sides – west, north and east. A lethal security linkage between the Pakistani and Bangladeshi militaries too cannot be ruled out.
India is being mindful of the increasing frenzy of the anti-India forces in the subcontinent and beyond. But it has not attempted to excessively hike its defence spend as the nation accords first priority to economic growth and welfare programmes that target the poor multitudes. Yet, India’s defence budget is seeing a steady rise – the allocations growing from Rs 2.53 lakh crore in 2013-14 fiscal to Rs 6.81 lakh crore in 2025-26. Notably, emphasis is being given under the Modi dispensation for indigenization of defence production and procurements, with involvement of the native industrial giants. Development of indigenous platforms, new-age technologies, and defence corridors has been attempted at. The Make-In-India initiative has been having a major thrust on the defence sector. Indigenous defence manufacturing has seen a significant push with the country recording the highest ever defence production of Rs 1.27lakh crore in 2023-24 – a rise of 174 per cent compared to Rs 46,429 crore in 2015. Foreign Direct Investment (FDI) in the defence sector has been liberalized in 2020 to attract more external funds. Its response, however, has been limited.
The setting up of two dedicated defence industrial corridors, in Uttar Pradesh and Tamil Nadu, has also helped in promoting the goal of this indigenization. It is common knowledge that defence procurements worth billions from external sources, mainly from the West, had in the past involved huge corruption through the commission raj. The Bofors deal was one example. Such commissions might still exist in hidden forms. Yet, when it comes to advanced technology, indigenization is not the answer; acquisitions in bulk from foreign sources would have to continue.
