New Delhi: The acquisition of Rafale-M fighters will significantly enhance the Indian Navy’s capabilities on aircraft carriers, while the introduction of new submarines will bolster defense in the Indian Ocean region.
The government led by Narendra Modi is poised to approve the purchase of 26 Rafale-Maritime strike fighters this month, continuing its pattern of increased capital investment in defense equipment. In the fiscal year 2024-25, the NDA government allocated over ₹2 lakh crore for this purpose.
Sources indicate that the $7.6 billion deal for the fighter jets is scheduled to be presented to the Cabinet Committee on Security (CCS) later this month, which will be followed by government approval for three additional diesel-electric submarines once all stakeholders reach a consensus. The Rafale-M fighters are intended to enhance the operational capabilities of the Indian Navy aboard India’s two aircraft carriers, while the new submarines will reinforce conventional deterrence in the Indian Ocean Region (IOR).
In the fiscal year 2024-2025, the defense ministry signed 193 contracts amounting to ₹209059.85 crore, compared to 192 contracts worth ₹104855.92 crore in 2023-2024. Since the Modi administration took office in 2014, the ministry has executed 1096 contracts totaling nearly ₹10 lakh crore (₹946225.48 crore).
The data indicates that capital expenditure reached a record high in 2024-2025, with no funds being surrendered, unlike in the previous four years. In 2020-2021, the ministry returned ₹205 crore, in 2021-2022, ₹863 crore, and in 2022-2023, ₹7055.99 crore. Additionally, in 2023-24, the ministry surrendered ₹2971.97 crore. In summary, while the Modi government has been allocating substantial funds for capital expenditure, the defense ministry has struggled to utilize these amounts effectively, resulting in lower revised estimates.
In light of the ongoing enhancements to border infrastructure by India’s neighbors, especially China, along the 3,488 km Line of Actual Control (LAC), and the evident political and economic turmoil in various countries within the Indian subcontinent, the Modi administration has prioritized the development of military capabilities, emphasizing the concept of ‘Aatmanirbhar Bharat.’
It has been communicated that senior officials are now responsible for overseeing project management and ensuring accountability in the development of indigenous capabilities. This includes making Defence Public Sector Undertakings (PSUs) like HAL and BEL more accountable and mindful of timelines. Additionally, the Defence Research and Development Organisation (DRDO) has been instructed that the nation cannot afford prolonged testing of hardware platforms, especially considering that global instability is likely to persist in the foreseeable future.
