Centre Hits Record ₹2 Lakh Crore Defence Spend, Eyes Rafales, Submarines
India boosts military might with major acquisitions and border infrastructure push amid China tensions

The Modi government has ramped up India's military preparedness with a record-breaking capital expenditure on defence equipment in FY 2024-25, crossing Rs 2 lakh crore in spending without any fund surrenders — a first in recent years. The push is part of a larger strategic focus on building military capability and self-reliance amid mounting regional security concerns.
In a major upcoming move, the government is set to approve the $7.6 billion acquisition of 26 Rafale-Maritime fighter jets to strengthen the Indian Navy’s aircraft carrier operations. Alongside, three additional diesel-electric submarines will be cleared to bolster India’s underwater conventional deterrence in the Indian Ocean Region.
This military modernisation effort aligns with the government's Atmanirbhar Bharat (self-reliant India) vision and comes in the backdrop of China’s aggressive infrastructure expansion along the 3,488-km Line of Actual Control (LAC). China continues to develop dual-use facilities — highways, high-speed rail, and military-ready villages — even after recurring border tensions like those in eastern Ladakh.
India has responded by shifting from a reactive to a more assertive posture. The India-China Border Roads (ICBR) programme is at the heart of this push, with over 10,000 km of new roads planned across three phases. Additionally, 31 road tunnels are being constructed to ensure year-round border access in difficult terrains.
On the aerial front, India is upgrading existing airstrips, building new helipads, and strengthening logistics in frontier regions such as Ladakh and Arunachal Pradesh.
Officials say the defence investment underscores a long-term strategy to counter growing threats, maintain regional dominance, and reduce dependency on foreign suppliers through indigenous manufacturing.