In a bold step to strengthen India’s military capabilities, the Narendra Modi-led government is all set to approve the acquisition of 26 Rafale-M fighter jets and three new diesel-electric submarines. This move is part of a massive push in capital defence spending that reached ₹2.09 lakh crore in 2024-25 — a record in India’s defence history. The strategic investment is aimed at enhancing India’s maritime strength in the Indian Ocean Region (IOR) and advancing the nation’s self-reliance goals under ‘Aatmanirbhar Bharat’.
With increasing geopolitical tensions and China’s growing influence along the LAC (Line of Actual Control), this approval signals India’s intent to modernize its armed forces and reduce dependency on foreign defence technologies.
₹2.09 Lakh Crore in 2024-25: India’s Largest Defence Outlay
Capital Expenditure at All-Time High
The Ministry of Defence has signed 193 capital contracts worth ₹2,09,059.85 crore in FY 2024-25. This is a sharp increase compared to ₹1,04,855.92 crore spent in 2023-24. The rise showcases a strong government focus on military readiness and modernization.
No Surrender of Funds – A First in Years
For the first time in recent years, no funds were surrendered by the Ministry of Defence, reflecting better project planning and timely execution. Compare this to previous years:
- ₹205 crore surrendered in 2020-21
- ₹863 crore in 2021-22
- ₹7,055.99 crore in 2022-23
- ₹2,971.97 crore in 2023-24
This marks a significant shift towards efficient use of allocated defence budgets.
The Big Ticket Deal: Rafale-M Fighter Jets
Why Rafale-M Is a Game Changer
The 26 Rafale-M (Maritime) jets, worth $7.6 billion, will serve aboard India’s aircraft carriers like INS Vikrant and INS Vikramaditya. These jets will enhance air dominance and strike capabilities at sea, providing a critical edge in the Indian Ocean Region.
The deal is expected to go before the Cabinet Committee on Security (CCS) later this month and will be India’s biggest naval aviation investment in years.
Strengthening Underwater Warfare: New Submarines Approved
Boosting Naval Deterrence
Alongside the Rafale-M jets, the government will approve three new diesel-electric submarines. These will add teeth to India’s conventional underwater force and act as a deterrent in contested waters, especially with growing Chinese naval activity in the Indo-Pacific.
Focus on Self-Reliance: Aatmanirbhar Bharat in Defence
Indigenous Development Prioritized
With this new spending wave, the government has put pressure on Defence PSUs like HAL and BEL to become more accountable and deliver within deadlines. Top officials have been assigned specific projects to ensure timely progress.
DRDO Gets a Reality Check
The Defence Research and Development Organisation (DRDO) has been instructed to fast-track its processes. No longer can India wait years for endless testing. Global instability demands rapid deployment of indigenous technologies.
Strategic Context: Why This Matters Now
China, Neighbours and Unrest
With China ramping up infrastructure along the 3,488 km Line of Actual Control and neighbouring countries like Pakistan and Sri Lanka facing political and economic stress, India finds itself at a crossroads.
The Modi government’s decision to prioritize military spending is a strategic response to these evolving threats. A well-equipped military not only safeguards national interests but also strengthens India’s position in the global arena.
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Final Words
This defence investment is not just about military might—it’s about vision, preparedness, and leadership. The Modi government’s continued focus on self-reliance and modern military assets like the Rafale-M jets and submarines reflects a long-term strategy to secure India’s future in an unpredictable world.
As 2024-25 sets a new benchmark for capital defence spending, India is making it clear: national security is non-negotiable.
Disclaimer
The views and information presented in this article are for general informational purposes only and do not constitute financial, strategic, or defence advice. While MoneyFlowInsight strives to ensure accuracy, we do not guarantee the completeness or reliability of the content. Readers are advised to verify facts independently and consult with relevant professionals before making any decisions based on this article.
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