India Approves $22 Billion Defense Overhaul

India approved 2.12 trillion rupees, or $22 billion, for military modernization on Monday. The budget covers long-range kamikaze drones, surveillance systems, counter-drone technology, short-range air defense, artillery, helicopters, and naval platforms. The decision comes as tensions persist along the border with China.

Last week, Shatrujeet Singh Kapoor, a director general of the Indo-Tibetan Border Police, reported active confrontations with Chinese soldiers at several points on the northeast border. Kapoor labeled China the "biggest adversary" and argued that traditional methods would struggle to keep up. "It will be difficult to compete with China using traditional methods," he said.

Experts indicate that New Delhi views Beijing as a growing threat, partly due to military ties between China and Pakistan. A SIPRI report from earlier this year showed that 61% of Chinese arms exports from 2021 to 2025 went to Pakistan. Last year, India struck alleged terrorist infrastructure within Pakistan.

On Friday, an Indian foreign ministry spokesperson stated that border conditions "gets disturbed from time to time when Chinese forces diverge from established patrolling patterns." Beijing responded that it "strictly abides by the relevant agreements and common understandings reached between the two countries."

Pieter Wezeman, a senior researcher at SIPRI, noted that the new purchases will incorporate South Korean components for artillery, French engines for helicopters, and drones from the United States and Israel. Russia and Japan may also participate in the supply chain.

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 fiscal year ending in March 2026, a ten-year high. While New Delhi plans to source 82% of equipment domestically, foreign firms will likely supply key technology. Arpit Chaturvedi of Teneo said India still relies on imports for aircraft engines, propulsion systems, sensors, and electronic subsystems.

SIPRI data show India accounted for 8.2% of global major arms imports between 2021 and 2025. The country spends $92 billion on its military, ranking fifth globally. This figure is less than 30% of China's spending and about one-tenth of America's. Collin Koh Swee Lean of Nanyang Technological University observed that mass-produced systems like drones can help offset the scale imbalance.