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India Clears 2.12 Trillion Rupee Package for Military Hardware

New Delhi approved funds for drones and air defense systems as border friction with China continues and domestic production efforts expand.

By Alexei Petit ·

Illustration for: India Clears 2.12 Trillion Rupee Package for Military Hardware
Illustration generated for this article, not a news photograph.

India’s government approved 2.12 trillion rupees, approximately $22 billion, in new military spending on Monday. The package funds the acquisition of long-range kamikaze drones, short-range air defense systems, artillery, and helicopters. This financial commitment aims to upgrade the country’s equipment inventory while border tensions with China remain active.

The decision follows comments made by Shatrujeet Singh Kapoor, a director general of the Indo-Tibetan Border Police, last week. Kapoor stated that confrontations with Chinese soldiers are occurring at multiple points along the northeastern border. He described China as the biggest adversary and argued that traditional military methods would struggle to compete with Beijing’s capabilities.

Foreign ministry officials in New Delhi addressed the border situation on Friday, noting that disturbances occur when Chinese forces deviate from agreed-upon patrolling routes. Beijing responded that it strictly follows the agreements and understandings reached with India. These diplomatic exchanges underscore the ongoing friction between the two nations, which maintains an uneasy peace despite heavy military investment.

Experts indicate that the new purchases are designed to close the technological gap with China, a concern amplified by Beijing’s military ties with Pakistan. Pieter Wezeman, a senior researcher at the Stockholm International Peace Research Institute, noted that India’s military strategy is shaped by conflicts with both Pakistan and China. A SIPRI report from earlier this year found that 61% of Chinese arms exports between 2021 and 2025 went to Pakistan, a country where India conducted strikes on alleged terrorist infrastructure last year.

The procurement plan involves international suppliers for key technologies. Wezeman said the purchases will include South Korean components for artillery, French engines and avionics for helicopters, and drones from the United States and Israel. Potential cooperation with Russia and Japan is also under consideration. Arpit Chaturvedi, South Asia advisor at Teneo, stated that India still relies on imports for aircraft engines, sensors, and electronic subsystems, creating opportunities for joint ventures with American, Israeli, and Russian manufacturers.

Citi reported on Tuesday that India has cleared 3.7 trillion rupees in military spending since April. This amount represents more than half of the 6.73 trillion rupees approved for the financial year ending in March 2026, a ten-year high. While New Delhi plans to source 82% of its defense equipment from domestic industry, foreign firms will remain important suppliers of specific technologies.

SIPRI data show that India accounted for 8.2% of global major arms imports from 2021 to 2025. The country’s reliance on foreign suppliers decreased by 4% during that period due to increased domestic production. India currently spends $92 billion on its military, ranking fifth globally. However, this figure is less than 30% of China’s spending and approximately one-tenth of the United States’ military budget.

Source: CNBC

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