Defence Spending Drives Acquisition Surge

India's defence modernisation programme has entered a phase of rapid implementation, with FY 2025-26 seeing full utilisation of capital expenditure and a clear focus on addressing critical capability gaps across the armed forces.

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What is particularly notable is not just the magnitude of spending, but its deliberate allocation across key equipment categories—air combat systems, unmanned platforms, naval assets, and tactical missile systems—each targeting specific operational weaknesses.

At the top of the acquisition hierarchy is the effort to enhance air combat capabilities. Planned procurement of multi-role fighter aircraft underscores the urgent need to stabilise squadron numbers, which have been under pressure due to the retirement of legacy platforms. These aircraft are expected to feature advanced avionics, multi-role versatility, and superior combat endurance, forming the core of future air dominance.

Closely related to this is investment in aero engines, a vital enabler for both the introduction of new aircraft and the maintenance of existing fleets. Engine availability has increasingly become a bottleneck in aircraft production and readiness, making this a strategically important area of expenditure.

The second major category is unmanned aerial capability, led by the acquisition of Medium Altitude Long Endurance (MALE) remotely piloted aircraft. These systems are designed for persistent intelligence, surveillance, and reconnaissance missions, with the added ability to support precision targeting. Their long endurance and operational flexibility make them indispensable in both peacetime monitoring and high-intensity conflict scenarios.

On the maritime side, the focus has been on addressing long-standing gaps through the planned induction of mine countermeasure vessels (MCMVs).