By making large capital expenditures on defense equipment, the Modi administration has greatly increased India’s military prowess. In contrast to prior years, the government spent more than ₹2 lakh crore on defense acquisitions in the fiscal year 2024–2025, which represented a peak in capital expenditures without any fund surrenders.
Plans to authorize the $7.6 billion acquisition of 26 Rafale-Maritime strike fighters to strengthen the Indian Navy’s aircraft carrier force continue this trend. In order to improve conventional deterrence in the Indian Ocean Region, the government is also expected to authorize the purchase of three additional diesel-electric submarines.
China’s massive infrastructure development along the Line of Actual Control (LAC) and the political and economic difficulties faced by nations in the Indian subcontinent are two of the main reasons behind the Modi government’s decision to give military capacity building with an emphasis on “Atmanirbhar Bharat” top priority. Key elements of this calculated move are as follows:
Along the 3,488 km LAC, China has been actively building its infrastructure, constructing high-speed rail, highways, and dual-use villages. Despite conflicts and standoffs, like the one in eastern Ladakh, this build-up has continued.
India has responded by changing from a defensive to a more proactive stance, concentrating on building out its border infrastructure. Under the India-China Border Roads (ICBR) program, this entails building vital roads, bridges, tunnels, and improving aviation infrastructure.
Three stages of the ICBR project are currently under way, and India is building more than 10,000 km of roads along the LAC. This includes building 31 road tunnels, which are essential for preserving connectivity in inclement weather.
By constructing new helipads and improving already-existing airfields in border regions like Ladakh, India has also improved its aviation infrastructure.
To improve indigenous military capabilities, ‘Atmanirbhar Bharat’ (Self-Reliant India) is the focus. This entails increasing the accountability of Defense PSUs and hastening DRDO’s development of domestic hardware platforms.
With a notable increase in the budget allotted for the development of border infrastructure, the government has dramatically increased capital spending on defense. This includes the BRO’s budget, which has grown significantly over time.
India’s strategic readiness is required due to the political and economic strains facing the Indian subcontinent. This entails resolving issues with internal security and preserving regional stability.
India’s defense budget for 2025–2026 has been raised by 9.5% to ₹6.81 lakh crore, with an emphasis on supporting domestic defense manufacturing and modernizing the military.
Even so, there are still issues with how the money is being allocated because a large amount goes toward operating expenses and pensions, leaving very little for new purchases.
By focusing on domestic manufacturing, lowering reliance on imports, and promoting ‘Aatmanirbhar Bharat’ (self-reliant India) initiatives, the government hopes to address these issues.
In 2024–2025, the defense ministry signed 193 contracts worth ₹209,059.85 crore, which was a substantial increase over the ₹104,855.92 crore signed the year before. The Modi government has demonstrated its dedication to military capacity building by signing more than 1,096 contracts totaling almost ₹10 lakh crore since 2014.
Despite these initiatives, operational gaps still exist in areas like air defense systems, fighter aircraft, and submarines, requiring ongoing defense modernization funding.
