India clears $22 billion for new military hardware
New Delhi approved the spending package on Monday amid ongoing border friction with China and a need to close technological gaps.
By Aisha Saeed ·

The Indian government approved 2.12 trillion rupees, or $22 billion, in new defense spending on Monday. The funds will pay for long-range kamikaze drones, surveillance systems, counter-drone technology, and short-range air defense units. The package also includes artillery, helicopters, and naval platforms.
The decision came after Shatrujeet Singh Kapoor, a director general in the Indo-Tibetan Border Police, reported ongoing confrontations with Chinese soldiers in India’s northeast. Kapoor described China as the "biggest adversary" and argued that traditional methods were no longer sufficient to compete with Beijing. He stated that modernization was necessary to handle the shifting dynamics on the border.
Foreign policy officials in New Delhi view the purchases as a way to narrow the technological distance with China. Experts note that military ties between China and Pakistan intensify this concern. A report from the Stockholm International Peace Research Institute earlier this year found that 61% of Chinese arms exports between 2021 and 2025 went to Pakistan. India conducted strikes against alleged terrorist infrastructure in Pakistan during the same period.
The new contracts will involve international suppliers. Pieter Wezeman, a senior researcher at SIPRI, said India will acquire South Korean components for artillery and French engines for helicopters. The country also plans to buy drones from the United States and Israel. Potential cooperation with Russia and Japan remains on the table as part of the upgrade strategy.
Citi reported on Tuesday that India has cleared 3.7 trillion rupees in military spending since April. This amount exceeds half of the 6.73 trillion rupees approved for the financial year ending in March 2026. That previous total marked a ten-year high for Indian defense outlays.
New Delhi aims to source 82% of its defense equipment from domestic industry. However, Arpit Chaturvedi, a South Asia advisor at Teneo, said India still relies on imports for aircraft engines, propulsion systems, and sensors. He noted that American, Israeli, and Russian manufacturers are likely to find substantial opportunities through joint ventures and technology partnerships with Indian firms.
India’s military spending reached $92 billion last year, ranking fifth globally. This figure is less than 30% of China’s spending and roughly one-tenth of the United States’ budget. Collin Koh Swee Lean of Nanyang Technological University observed that while India faces hurdles matching China’s scale, mass-produced systems like drones can help offset that imbalance.
Source: CNBC
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