India’s defence spending is poised to reach a cumulative $543.1 billion over the period 2026-30, reflecting a robust response to recent operational challenges and geopolitical threats, particularly from Pakistan and China.

This significant investment is driven primarily by India’s need to fill capability gaps exposed during Operation Sindoor, a military campaign targeting terrorist infrastructure in Pakistan.

The operation underscored India’s requirement to enhance its qualitative edge and operational preparedness amid a backdrop of China’s alleged provision of military hardware, surveillance, and logistical support to Pakistan.

The Indian government has approved emergency funding of $6 billion to replenish munitions and procure urgent defence systems, including ammunition, air defence, surveillance, missiles, and loitering munitions.

About 31% of India’s projected defence budget for 2026-30 is expected to go towards acquisition, emphasising modernisation and rapid enhancement of military capabilities.

Operation Sindoor revealed vulnerabilities such as combat losses suffered by the Indian Air Force, prompting a reassessment of military readiness.

With concerns about a potential two-front threat from Pakistan and China, India is accelerating its defence modernisation, aiming not only to maintain supremacy over Pakistan but also to strategically counterbalance China’s military capabilities.

Key defence modernisation initiatives include:

Expansion of airborne early warning and control aircraft, such as the Netra MK-1A and the anticipated Netra MK-2, incorporating larger radars for extended surveillance.

Acquisition plans for dedicated electronic warfare aircraft for signals and communications intelligence.

Accelerated development of advanced long-range missiles, including the Astra MK-III air-to-air missile system.

Follow-on orders for 97 additional TEJAS MK-1A multi-role fighters, alongside upgrades to existing platforms like the Super Sukhoi with new radar technologies and electronic warfare suites.

Integration of UAVs and Unmanned Ground Vehicles into Army units, and comprehensive upgrades to armoured forces with modular armour, thermal imaging, active protection, and UAV support.

Structural reforms aimed at faster force mobilisation, with more compact fighting units and improved logistics infrastructure for pre-positioned military supplies near borders.

On the maritime front, the Indian Navy plans to bolster reconnaissance and strike capabilities through additional P-8I Poseidon maritime patrol aircraft, C-295 patrol planes, and operational integration of unmanned surface and underwater vehicles, including the advanced Jalkalpi unmanned underwater vehicle expected by 2027.

This accelerated procurement and modernisation effort reflects India’s strategic imperative to regain and maintain a qualitative military edge over Pakistan, which relies heavily (81%) on Chinese military hardware tested in real combat scenarios as revealed during Operation Sindoor.

China’s support to Pakistan during the conflict included live battlefield intelligence, advanced missile systems, drones, and air defence technologies, although many of these were neutralised by Indian air defences.

India’s defence expenditure, estimated at $86.1 billion in 2024, dwarfs Pakistan’s $10.2 billion, reflecting a nearly nine-fold difference.

However, India is also mindful of China’s $314 billion defence budget, driving its efforts need for qualitative parity through indigenous defence manufacturing, technological advancements, and strategic force planning. Despite rising expenditures, India faces challenges in efficiently financing and managing these modernisation programs, leading to proposals for establishing formal funding channels for emergency procurements, with such funding projected to reach $11.1 billion by 2030.

India’s planned cumulative defence spending of $543.1 billion during 2026-30 is a clear and comprehensive response to recent operational lessons, regional security dynamics, and the evolving military threat landscape shaped by Pakistan-China military cooperation.

This spending surge aims to strengthen India’s military capabilities across air, land, and maritime domains to secure its strategic interests in South Asia and the Indo-Pacific region.

Based On APDR Report