India's $71B defence budget boosts military tech and global deals

India approves $71 billion defence spending in push for military modernization

India has approved a massive defence spending package worth 6.73 trillion rupees ($71 billion) for the current fiscal year. The country, already the world's fifth-largest military spender, continues to expand its capabilities through both domestic production and international partnerships.

Among the key deals is a $25 billion agreement with Russia for S-400 anti-aircraft missile systems, confirmed by the Ministry of Defence on March 27. The move comes as India strengthens its ties with Moscow while also diversifying its defence acquisitions from other global suppliers.

The newly approved defence proposals cover a wide range of equipment, including transport aircraft, strike drones, and artillery systems. India also signed a separate 4.45 billion rupee ($47 million) contract with Russia for Tunguska anti-aircraft missile systems. These purchases align with India's long-standing policy of securing advanced military technology to meet its strategic needs.

Beyond Russia, India has finalised a $40 billion deal for French Rafale fighter jets and American Boeing P-8I reconnaissance aircraft. This reflects a broader strategy of maintaining multiple defence partnerships rather than relying on a single supplier. While France and the US provide critical assets like Rafale fighters and Apache helicopters, Russia remains a key collaborator in joint research and manufacturing. The shift in India-Russia defence cooperation marks a move away from a simple buyer-seller relationship. Programs like the BrahMos cruise missile, Su-30MKI production, and AK-203 rifle manufacturing now involve deeper collaboration, including co-production of spare parts in India. This approach contrasts with India's deals with France and the US, where procurement remains largely transactional. During recent high-level talks, Russia and India also explored resuming direct liquefied natural gas (LNG) shipments and doubling crude oil sales. India has defended its continued trade with Russia, stating that such deals serve its national interests.

The latest defence approvals reinforce India's position as the world's second-largest arms importer after Ukraine. With a focus on both domestic manufacturing and international joint ventures, the country aims to modernise its military while balancing relationships with multiple global partners. The deals also highlight India's strategy of securing energy and defence supplies through long-standing ties with Russia.