India Unveils ₹30,000 Crore Drone Contract, Pushes for Major Defence Budget Hike

1 min read     Updated on 22 Sept 2025, 08:49 PM
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Overview

Defence Secretary Rajesh Kumar Singh unveiled plans for substantial investments in military technology and indigenous production. The government will invite proposals for medium-altitude long-endurance (MALE) drone contracts worth ₹30,000 crore. Additional orders up to ₹75,000 crore are planned for FY 2025-26, including AWACS aircraft. The Ministry aims to spend 75% of its capital expenditure within India. Long-term plans include an estimated annual expenditure of $35 billion or more for the next 15 years, with a push for at least a 17% hike in defence capital expenditure in the upcoming budget. The strategy addresses capability gaps by acquiring 4.5-generation fighter jets and focusing on modern technologies.

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*this image is generated using AI for illustrative purposes only.

In a significant move to bolster India's defence capabilities, Defence Secretary Rajesh Kumar Singh has announced plans for substantial investments in military technology and indigenous production. The announcement highlights the government's commitment to modernizing the armed forces and promoting self-reliance in defence manufacturing.

Major Drone Contract Announced

The Indian government is set to invite proposals for medium-altitude long-endurance (MALE) drone contracts worth ₹30,000 crore. This initiative marks a crucial step in enhancing India's surveillance and reconnaissance capabilities, particularly in challenging terrains and border areas.

Ambitious Procurement Plans

Beyond the drone contracts, the Defence Ministry has outlined an ambitious procurement strategy:

  • Orders worth up to ₹75,000 crore are planned for the remainder of financial year 2025-26.
  • These orders will include Airborne Warning and Control System (AWACS) aircraft, critical for airborne surveillance and battle management.

Push for Indigenous Production

Aligning with the 'Make in India' initiative, the Ministry aims to spend 75% of its capital expenditure within the country. This move is expected to give a significant boost to the domestic defence manufacturing sector and reduce reliance on imports.

Long-term Investment Outlook

Defence Secretary Singh provided insights into the government's long-term defence spending plans:

  • An estimated annual expenditure of $35 billion or more for the next 15 years.
  • The Ministry is pushing for at least a 17% hike in defence capital expenditure in the upcoming budget.
  • A 10% increase in defence capital expenditure is expected in the next budget.

Addressing Capability Gaps

The procurement strategy aims to address critical capability gaps in India's defence forces:

  • Acquisition of 4.5-generation fighter jets to enhance air combat capabilities.
  • Focus on modern technologies to meet evolving national security demands.

Budget Allocation Concerns

Despite these ambitious plans, India's defence spending has fallen below 2% of GDP. The government is targeting to increase this to 2.5-3% to meet the country's national security requirements effectively.

Conclusion

This announcement signals India's intent to significantly upgrade its defence capabilities while promoting indigenous manufacturing. The focus on drones, AWACS, and fighter jets indicates a comprehensive approach to modernizing the armed forces across air, land, and sea domains. As these plans materialize, they are likely to have far-reaching implications for India's defence preparedness and its domestic defence industry.

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India Considers ₹2 Lakh Crore Deal for 114 Made-in-India Rafale Jets

1 min read     Updated on 13 Sept 2025, 02:31 PM
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Overview

The Indian Defence Ministry is reviewing a proposal to acquire 114 Rafale fighter jets under a 'Made in India' model, valued at over ₹2 lakh crore. The Indian Air Force has submitted a Statement of Case for the acquisition. If approved, Dassault Aviation would produce the aircraft in collaboration with Indian firms, with over 60% domestic content. The deal could bring India's total Rafale fleet to 176 aircraft, including existing and Navy orders. Dassault proposes establishing an MRO hub in Hyderabad for Rafale engines. The India-built versions are expected to have enhanced strike capabilities.

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*this image is generated using AI for illustrative purposes only.

The Indian Defence Ministry is currently reviewing a substantial proposal to acquire 114 Rafale fighter jets under a 'Made in India' model. This potential deal, valued at over ₹2 lakh crore, marks a significant step in India's efforts to modernize its air force while boosting domestic manufacturing capabilities.

Key Points of the Proposal

  • The Indian Air Force has submitted a Statement of Case for the acquisition of 114 Rafale fighter jets.
  • The proposal is under scrutiny by various wings of the Defence Ministry, including Defence Finance.
  • If approved, the aircraft would be produced by French company Dassault Aviation in collaboration with domestic aerospace firms.
  • Over 60% of the content would be manufactured in India, aligning with the country's 'Make in India' initiative.

Potential Impact on India's Air Force

The acquisition, if approved, would significantly bolster India's air power:

  • It would add to India's current fleet of 36 Rafales.
  • Combined with the 26 Rafales already ordered by the Navy, this could bring India's total Rafale fleet to 176 aircraft.

Industrial Collaboration and Technology Transfer

Dassault Aviation has proposed establishing a Maintenance, Repair and Overhaul (MRO) hub in Hyderabad for the M-88 engines that power the Rafale jets. This move could enhance India's aerospace capabilities and create a robust support infrastructure for the fleet.

Strategic Considerations

The proposal follows Operation Sindoor, where Rafales demonstrated superiority over Chinese PL-15 missiles using their Spectra electronic warfare system. This performance has likely influenced the decision to consider expanding India's Rafale fleet.

Enhanced Capabilities

The India-built versions of the Rafale are expected to be armed with longer-range air-to-ground missiles than the current Scalp missiles, potentially increasing the aircraft's strike capabilities.

Conclusion

This review of the ₹2 lakh crore deal for 114 Made-in-India Rafale fighter jets represents a significant development in India's defence strategy. If approved, it would not only enhance the country's air defence capabilities but also provide a substantial boost to the domestic aerospace industry. The deal's progress will be closely watched by defence analysts and industry observers alike.

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