The Modi government has significantly bolstered India's military capabilities through substantial capital spending on defence equipment. In the fiscal year 2024-2025, the government spent over ₹2 lakh crore on defence acquisitions, marking a peak in capital expenditure without any fund surrenders, unlike previous years.
This trend continues with plans to approve the purchase of 26 Rafale-Maritime strike fighters, valued at $7.6 billion, to enhance the Indian Navy's strength on aircraft carriers. Additionally, the government is set to approve the acquisition of three more diesel-electric submarines to strengthen conventional deterrence in the Indian Ocean Region.
The Modi government's decision to prioritise military capacity building with a focus on 'Atmanirbhar Bharat' is driven by several factors, including China's extensive infrastructure development along the Line of Actual Control (LAC) and the political and financial challenges faced by countries in the Indian sub-continent. Here are key aspects of this strategic move:
China has been aggressively developing its infrastructure along the 3,488 km LAC, including the construction of highways, high-speed rail, and dual-use villages. This build-up has been ongoing despite tensions and face-offs, such as the one in eastern Ladakh.
In response, India has shifted from a defensive strategy to a more proactive approach, focusing on developing its border infrastructure. This includes constructing strategic roads, bridges, tunnels, and enhancing air infrastructure under the India-China Border Roads (ICBR) program.
India is constructing over 10,000 km of roads along the LAC, with three phases of the ICBR project underway. This includes the construction of 31 road tunnels, which are crucial for maintaining connectivity during harsh weather conditions.
India has also strengthened its air infrastructure by building new helipads and enhancing existing airfields in border areas like Ladakh.
The focus on 'Atmanirbhar Bharat' (Self-Reliant India) aims to enhance indigenous military capabilities. This involves making Defence PSUs more accountable and accelerating the development of indigenous hardware platforms by DRDO.
The government has significantly increased capital spending on defence, with a notable rise in the budget allocated for border infrastructure development. This includes a substantial increase in the BRO's budget over the years.
The Indian sub-continent is experiencing political and financial stress, which necessitates India's strategic preparedness. This includes addressing internal security challenges and maintaining stability in the region.
India's defence budget for 2025-2026 has been increased by 9.5% to ₹6.81 lakh crore, with a focus on modernising the armed forces and promoting indigenous defence production.
However, despite this increase, concerns remain about the allocation of funds, as a significant portion is dedicated to pensions and operational costs, leaving only a fraction for new acquisitions.
The government aims to address these challenges by prioritising 'Aatmanirbhar Bharat' (self-reliant India) initiatives, emphasising domestic manufacturing and reducing dependence on foreign imports.
The defence ministry signed 193 contracts in 2024-2025, totalling ₹209,059.85 crore, reflecting a significant rise from the previous year's ₹104,855.92 crore. Since 2014, the Modi government has signed over 1,096 contracts worth nearly ₹10 lakh crore, underscoring its commitment to military capacity building.
Despite these efforts, operational gaps persist in areas such as fighter aircraft, submarines, and air defence systems, necessitating continued investment in defence modernisation.
HT News