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India has green-lit a significant military procurement deal worth $5.46 billion on Friday. The Defence Acquisition Council (DAC), chaired by the defense minister, approved “in-principle” the acquisition of missiles, electronic warfare systems, and Kamikaze drones.
The estimated cost of the deal is Rs520 billion ($5.46 billion). It remains unclear whether these systems will be imported or domestically produced. Over the past decade, India has reduced its reliance on Russia for military equipment, opting instead for suppliers like the United States and France, while also boosting domestic production capabilities.
The acquisition includes anti-drone and electronic warfare systems, medium-range surface-to-air missiles, portable anti-tank missiles, a “Jet Based Kamikaze Drone System” for the Indian army, naval mines, shipborne drones, and a testing facility to enhance maritime defense. Additionally, India plans to procure a high-altitude unmanned aircraft platform for intelligence gathering.
India’s current defense budget stands at $85 billion. The recent conflict with Pakistan last year, which resulted in the loss of seven Indian aircraft, underscored the need for Delhi to bolster its defense capabilities. Furthermore, India is accelerating its naval modernization efforts amid growing Chinese influence in crucial shipping lanes in the Indian Ocean. In December, New Delhi began ordering at least 75 ships and submarines, most of which will be domestically built. Earlier this year, officials approved the purchase of $39 billion worth of defense equipment, including Rafale jets from France.