India's military modernisation drive has reached a pivotal juncture with the Defence Acquisition Council (DAC) greenlighting a colossal ₹3,6 Lakh Crores procurement package.
This landmark decision, spearheaded by the Modi government, encompasses 114 French-origin Rafale fighter jets—most to be produced domestically under the 'Make in India' banner—alongside six Boeing P-8I maritime surveillance aircraft and anti-tank mines for the Army. Coming amid escalating regional tensions, the approvals underscore New Delhi's resolve to bolster its defence posture.
The Rafale deal stands as the crown jewel of this initiative. Originally, India inducted 36 Rafales in flyaway condition from Dassault Aviation in 2016.
Now, the expanded order for 114 jets prioritises local manufacturing, with a significant portion slated for assembly at the Hindustan Aeronautics Limited (HAL) facility in Bangalore.
This shift aligns seamlessly with the 'Make In India' ethos, aiming to transfer technology, foster indigenous capabilities, and create a robust aerospace manufacturing ecosystem.
Under the deal's structure, around 70-80 per cent of the jets will be built in India, incorporating local avionics, weapons systems, and components from firms like TATA Advanced Systems and Bharat Electronics Limited (BEL).
This not only promises to infuse over ₹2,0 Lakh Crores into the domestic economy but also positions India as a potential exporter of advanced fighters. Prime Minister Narendra Modi's vision of self-reliance in defence receives a massive boost here, reducing import dependency that has long plagued the sector.
The Indian Air Force (IAF), facing a squadron crunch, desperately needs this infusion. Currently, the IAF operates just 31 squadrons against an authorised strength of 42, exacerbated by the retirement of ageing MiG-21s and delays in indigenous projects like the TEJAS MK-2.
Regional adversaries—China with over 50 squadrons and Pakistan modernising its fleet—heighten the urgency. The Rafales, with their spectrum warfare capabilities, Meteor beyond-visual-range missiles, and SCALP cruise missiles, will plug critical gaps in multi-role superiority.
Shifting focus seawards, the acquisition of six additional Boeing P-8I Poseidon aircraft fortifies the Indian Navy's maritime domain awareness. Already operating 12 P-8Is since 2013, the Navy will expand to 18, enhancing anti-submarine warfare, intelligence, surveillance, and reconnaissance (ISR) over the Indian Ocean Region (IOR).
This comes at a time of heightened Chinese naval forays, including submarines prowling near Indian waters and the Belt and Road Initiative's ports encircling the subcontinent.
The P-8Is, equipped with Harpoon missiles, sonobuoys, and advanced radar, will patrol vital sea lanes from the Malacca Strait to the Arabian Sea. Their integration promises seamless synergy with the Navy's growing indigenous carrier fleet, including INS Vikrant. Priced at roughly ₹15,000 Crores, this package reflects India's strategic pivot towards blue-water capabilities, countering the People's Liberation Army Navy's expansion.
On the land front, the Army secures thousands of advanced anti-tank mines, a response to armoured threats along the Line of Actual Control (LAC) and Line of Control (LoC). These smart, loitering munitions and guided mines will equip mechanised infantry against Chinese Type-99 tanks and Pakistani Al-Khalid variants. With border skirmishes persisting post-Galwan 2020, such acquisitions enhance defensive depth without escalating costs.
This procurement spree is no isolated event but part of a broader military expansion. Since 2014, defence spending has surged 50 per cent to ₹6,20,000 Lakh Crores in the 2026 budget, with capital outlay hitting ₹1,80,000 Lakh Crore for modernisation.
Indigenous production has leaped from 30 per cent to 65 per cent of procurement, exemplified by Akash missiles, BrahMos exports, and drone swarms. Private sector involvement—via Adani, L&T, and Mahindra—has injected dynamism.
India faces an escalating security landscape shaped by neighbourhood weapons proliferation. China's rapid border infrastructure development heightens tensions along the Line of Actual Control. Pakistan's arsenal, bolstered by China-supplied JF-17 Thunder fighters and Shaheen ballistic missiles, poses a persistent threat. Houthi attacks disrupting Red Sea shipping lanes further complicate India's maritime security calculus.
These dynamics compel India to accelerate its military modernisation. Strategic partnerships through the Quad framework, alongside ties with France, the United States, and Israel, have unlocked vital co-production agreements. A prime example is the joint development of the Rafale-Marine variant for carrier operations.
Yet, formidable challenges endure. Bureaucratic red tape has long plagued procurement processes. Technology absorption by domestic industry remains uneven. Global conflicts expose supply chain frailties, from semiconductor shortages to raw material disruptions.
Critics lambast India's apparent tilt towards French platforms, urging greater investment in indigenous options like the TEJAS MK-2 or the Advanced Medium Combat Aircraft (AMCA). They argue that foreign buys undermine self-reliance goals.
Proponents rebut that Rafale acquisitions fill critical squadron shortages immediately, buying time for home-grown programmes to mature. The Defence Acquisition Council's (DAC) swift approvals in a single February 2026 meeting underscore this urgency and decisiveness.
This streamlined process could halve the Indian Air Force's squadron deficit by 2030, restoring parity against two-front threats. Currently standing at 31 squadrons against an authorised 42, the IAF's revival hinges on such bold moves.
The economic ripple effects promise transformation. The Rafale program alone could create 2,00,000 jobs across manufacturing, maintenance, and support sectors. It aims to skill 5,000 engineers in advanced avionics and composites. Ancillary industries in engines, sensors, and materials will flourish. 'Make in India' transitions from rhetoric to reality, with offset clauses mandating 50 per cent localisation of production value.
This infusion positions India as a contender in the global defence market. Exports to Southeast Asia and Africa beckon, with nations seeking reliable, customised platforms. Vietnam and Indonesia have already signalled interest in Rafale variants.
Technological integrations tailor the jets to Indian needs. Astra beyond-visual-range missiles enhance air-to-air lethality. Rudram anti-radiation missiles neutralise enemy radars effectively.
Uttam AESA radars, fully indigenous, provide superior situational awareness. Seamless integration with S-400 air defence systems and indigenous Airborne Warning and Control Systems (AWACS) forges networked kill chains.
These capabilities deter simultaneous aggression from northern and western fronts. P-8I Poseidon maritime patrol aircraft deliver spy-plane-level ISR, fused with GSAT-7 satellite feeds for real-time battlespace dominance.
Sustainability underpins the vision. HAL's Nashik facility incorporates solar-powered assembly lines. Recyclable composites reduce environmental footprint, aligning with global green manufacturing norms.
Export ambitions extend strategic influence. Vietnam eyes Rafales to counter Chinese naval expansion in the South China Sea. Indonesia seeks upgrades for its archipelago defence. This ₹3.6 Lakh Crores investment transcends mere hardware acquisition. It embodies a quest for strategic autonomy amid simmering tensions from Ladakh to Lakshadweep.
As the 2030s loom volatile, India's armed forces prepare for protracted contests. The PM Modi government's defence legacy rests on execution, but early indicators suggest a robust military-industrial complex taking shape.
Agencies
