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Indian Government Set to Finalize Defense Deals Worth INR 1.5 lakh Crores

14-01-2025

4 min read

Indian Government Set to Finalize Defense Deals Worth INR 1.5 lakh Crores

In a landmark move aimed at strengthening Indias defence capabilities, the government is set to finalize four major defence procurement deals worth over 1.5 lakh crore before the fiscal year ends on March 31, 2025. These agreements are part of a comprehensive strategy to modernize the Indian Armed Forces in the face of growing regional security challenges and align with the governments vision for the Year of Reforms in defence modernization.

Strategic Procurement Plans

Rafale-Marine Fighter Jets for INS Vikrant

The centrepiece of the upcoming agreements is a 63,000 crore contract with France for 26 Rafale-Marine fighter jets. These advanced jets will operate from the deck of the indigenous aircraft carrier INS Vikrant, significantly boosting the Indian Navys operational capabilities. The deal includes the acquisition of 22 single-seat and four twin-seat variants of the Rafale-Marine, designed to enhance maritime security and ensure Indias dominance in the Indian Ocean Region (IOR).

Scorpene-Class Submarines

India is also set to acquire three additional Scorpene-class submarines in collaboration with the French Naval Group and Mazagon Dockyard Limited (MDL). With an estimated cost of 30,000 crore, these submarines will augment Indias underwater warfare capabilities. The Scorpene-class submarines are known for their stealth features and advanced weapon systems, making them a critical asset for the Indian Navy.

Prachand Combat Helicopters

The acquisition of 156 Prachand Light Combat Helicopters (LCHs) marks another significant step in bolstering aerial combat capabilities. Manufactured by Hindustan Aeronautics Limited (HAL), these helicopters are designed for high-altitude operations in challenging terrains like Siachen Glacier and eastern Ladakh. The fleet will comprise 90 helicopters for the Indian Army and 66 for the Indian Air Force. The Prachand LCHs will complement the 15 units already inducted under a previous 3,887 crore contract inked in 2022.

Advanced Towed Artillery Gun Systems (ATAGS)

Indias artillery modernization program includes the acquisition of 307 Advanced Towed Artillery Gun Systems (ATAGS). Bharat Forge and Tata Advanced Systems will manufacture these guns, with Bharat Forge producing 60% and Tata handling the remaining 40%. The ATAGS are designed to provide enhanced firepower and precision, with the Indian Army planning to induct more advanced versions to meet its total requirement of 1,580 guns. The financial specifics of this deal are yet to be disclosed.

Broader Strategic Vision

These procurements are aligned with Indias long-term vision to achieve self-reliance in defence manufacturing and ensure technological superiority in military operations. Defence Minister Rajnath Singh emphasized that 2025 has been designated as the Year of Reforms to transform the armed forces into a technologically advanced, combat-ready force capable of multi-domain integrated operations.

This initiative will lay the foundation for unprecedented advancements in defence preparedness, ensuring Indias security and sovereignty amidst 21st-century challenges, Singh stated in a press release.

Regional and Global Context

Indias ambitious defence modernization efforts come against the backdrop of increasing regional security challenges, particularly China’s expanding naval presence in the Indian Ocean. The governments substantial budgetary allocations and focus on indigenous defence manufacturing highlight its commitment to enhancing national security.

Prime Minister Narendra Modis scheduled state visit to France in February 2025, followed by participation in the AI Summit, underscores the strategic partnership between the two nations. French President Emmanuel Macrons announcement of this visit reaffirms Frances role as a key ally in Indias defence modernization efforts.

Streamlined Defence Acquisition

To expedite these transformative initiatives, the Defence Acquisition Procedure (DAP)-2020 is being revised to cut down procurement timelines, streamline processes, and provide a level playing field for all stakeholders. The aim is to ensure timely execution of these critical contracts, setting the stage for a more robust and technologically advanced Indian military.

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Indian Government Set to Finalize Defense Deals Worth INR 1.5 lakh Crores — ARCLANTIC