New Indian Defense Deals in 2025: Strengthening National Security
India’s defense sector is undergoing a transformative phase in 2025, driven by a strategic focus on modernization, indigenization, and global partnerships. With rising geopolitical tensions and the need to counter emerging threats, the Indian government has prioritized significant defense acquisitions and contracts to bolster its military capabilities. This blog explores the major defense deals signed or approved in 2025, highlighting their objectives, key features, and their impact on India’s national security and self-reliance goals.
Key Defense Deals in 2025
1. Advanced Towed Artillery Gun Systems (ATAGS)
On March 26, 2025, India signed a landmark contract for the procurement of 307 ATAGS (155mm/52-calibre) guns, a cornerstone of the Indian Army’s artillery modernization. Developed by the Defence Research and Development Organisation (DRDO) in collaboration with private sector partners, these indigenous guns boast a firing range of up to 48 km, automated control systems, and high precision. This deal, valued at a significant amount, aligns with the ‘Make in India’ initiative, reducing reliance on foreign artillery and enhancing the Army’s firepower along sensitive borders.
Impact: The ATAGS deal strengthens India’s artillery capabilities, particularly in high-altitude and open-terrain warfare, while boosting domestic defense manufacturing.
2. Nuclear-Powered Attack Submarines
The Cabinet Committee on Security approved a Rs 45,000 crore project for the indigenous construction of two nuclear-powered attack submarines at the Ship Building Centre in Vishakhapatnam. This initiative, involving private sector firms like Larsen & Toubro, enhances the Indian Navy’s underwater capabilities in the Indian Ocean Region, a critical area for strategic dominance.
Impact: These submarines will significantly improve India’s deterrence against maritime threats, reinforcing its naval presence in a geopolitically sensitive region.
3. Predator Drones from the United States
India finalized a deal for 31 MQ-9B Predator drones from the U.S., with 15 allocated to the Indian Navy and eight each to the Army and Air Force. Valued at approximately Rs 35,000 crore, this contract includes provisions for integrating indigenous technologies from DRDO and Solar Industries, aligning with the ‘Make in India’ vision. These drones are designed for anti-submarine warfare and surveillance, enhancing India’s ability to monitor and counter threats in the Indo-Pacific.
Impact: The acquisition of Predator drones strengthens India’s surveillance and precision strike capabilities, particularly in response to the growing use of drones in modern warfare.
4. Pinaka Rocket Systems
Two contracts worth over Rs 10,000 crore were signed for the production of Pinaka Area Denial Munition Type 1 and High Explosive Pre-Fragmented Mk-1 (Enhanced) rockets. Manufactured by Economic Explosives Ltd. (EEL) and Munitions India Limited (MIL), these upgraded rockets offer improved accuracy and a range of up to 75 km, making them ideal for rapid deployment and large-scale battlefield support.
Impact: The enhanced Pinaka systems bolster the Indian Army’s long-range precision strike capabilities, providing a robust response to asymmetric threats.
5. Rafale-M Fighter Jets for the Indian Navy
The Indian Navy is set to acquire 26 Rafale-M fighter jets for deployment on the INS Vikrant, India’s indigenous aircraft carrier. Valued at approximately Rs 50,000 crore, this deal builds on the previous procurement of 36 Rafale jets for the Indian Air Force. The decision to exclude the indigenous Uttam radar system was made to avoid delays and cost overruns, prioritizing operational readiness.
Impact: The Rafale-M jets will enhance the Navy’s air combat capabilities, ensuring dominance in maritime operations and interoperability with existing Rafale fleets.
6. Scorpene-Class Submarines
A Rs 40,000 crore deal for three additional Scorpene-class submarines is progressing through a collaboration between France’s Naval Group and Mazagon Dockyard Limited (MDL). These submarines will feature advanced technology and an indigenous combat management system, with significant participation from Indian firms like Bharat Electronics Limited (BEL).
Impact: This deal strengthens India’s submarine warfare capabilities, addressing the need for advanced underwater platforms to counter regional threats.
7. BrahMos Missiles and Close-In Weapon Systems (CIWS)
In March 2024, India sealed contracts worth Rs 39,125 crore, including two deals for BrahMos supersonic cruise missiles (Rs 19,518.65 crore for the Indian Navy and Rs 988 crore for ship-borne systems) and a Rs 7,668.82 crore deal for CIWS with Larsen & Toubro. The BrahMos missiles, known for their pinpoint accuracy and supersonic speeds, will serve as the Navy’s primary weapon for maritime strike operations. The CIWS will provide terminal air defense against low-flying threats like drones and cruise missiles.
Impact: These systems enhance India’s maritime strike and air defense capabilities, critical for protecting naval assets and military bases.
8. RD-33 Aero Engines for MiG-29 Fleet
A Rs 5,249.72 crore contract with Hindustan Aeronautics Limited (HAL) was signed for the procurement of RD-33 aero engines for the Indian Air Force’s MiG-29 fleet. Manufactured under a transfer of technology license from Russia, this deal focuses on indigenizing critical components to sustain the operational readiness of the MiG-29 squadrons.
Impact: The deal ensures the continued combat capability of the MiG-29 fleet, bridging the gap until newer aircraft like the Tejas Mk2 and AMCA are fully developed.
9. Light Combat Helicopter (LCH) Prachand
In March 2025, contracts worth Rs 62,700 crore were signed for 156 LCH Prachand helicopters, designed to enhance India’s aerial capabilities in high-altitude and counter-insurgency operations. These indigenous helicopters, developed by HAL, are equipped with advanced avionics and weaponry, making them versatile for modern warfare.
Impact: The LCH Prachand strengthens India’s ability to conduct precision strikes and support ground forces in challenging terrains like the Himalayas.
10. Su-30MKI Upgrades and QRSAM
The Defence Acquisition Council (DAC) is set to clear deals worth over Rs 1 lakh crore, including upgrades for the Su-30MKI ‘Super Sukhoi’ fighters and the procurement of Quick Reaction Surface-to-Air Missiles (QRSAM) for the Indian Army, valued at Rs 30,000 crore. These upgrades will enhance the Su-30MKI’s avionics, radar, and electronic warfare capabilities, while the QRSAM will provide robust air defense against aerial threats.
Impact: These acquisitions will modernize the Indian Air Force’s frontline fighters and strengthen the Army’s air defense network, critical for a multi-front threat environment.
Strategic Context and Implications
Geopolitical Drivers
India’s defense deals in 2025 are shaped by escalating tensions with China and Pakistan, particularly following the Pahalgam terror attack in May 2025, which led to Operation Sindoor. This operation highlighted the importance of drone warfare and precision strikes, prompting investments in loitering munitions and advanced air defense systems like the Sudarshan S-400. The ongoing border standoff with China in eastern Ladakh and the need to counter Pakistan’s drone and missile capabilities have further accelerated these acquisitions.
Focus on Indigenization
The ‘Aatmanirbhar Bharat’ (self-reliant India) initiative is a cornerstone of India’s defense strategy. Over 400 defense items, including missiles and drones, are now on the import ban list, prioritizing domestic manufacturers like HAL, BEL, and Bharat Forge. Deals like the ATAGS, LCH Prachand, and Pinaka rockets underscore India’s commitment to reducing import dependency and building a robust defense industrial base. The Defence Testing Infrastructure Scheme (DTIS), with seven new facilities approved by February 2025, further supports this goal by ensuring the reliability of indigenous systems.
Global Partnerships
India’s defense deals reflect a balanced approach to global partnerships. Collaborations with the U.S. (Predator drones, jet engine deals), France (Scorpene submarines, Rafale-M jets), and Russia (RD-33 engines, S-400 systems) demonstrate India’s strategy of diversifying its defense procurement while fostering technology transfers. The India-U.S. defense partnership, in particular, is deepening, with discussions on interoperability, joint military exercises, and defense industrial collaboration gaining momentum.
Economic and Industrial Impact
The defense budget for 2025–26, set at Rs 6.81 lakh crore, includes Rs 1.8 lakh crore for modernization, reflecting the government’s commitment to upgrading military infrastructure. These deals are expected to generate significant business for Indian defense manufacturers, with companies like HAL, BEL, and Mazagon Dock securing multi-year order books. The projected defense exports of Rs 25,000 crore by 2025–26 highlight India’s growing role as a global defense supplier, with exports like the BrahMos missile to Indonesia.
Challenges and the Way Forward
Despite these advancements, challenges remain. The allocation for defense R&D, at 3.94% of the total budget, is insufficient for developing cutting-edge technologies. Past acquisition delays, such as those for Rafale fighters and Scorpene submarines, highlight the need for streamlined procurement processes. Additionally, while private sector participation is growing, fostering robust public-private collaboration remains a priority to bridge technological gaps.
To address these challenges, India must continue to invest in R&D, enhance testing infrastructure, and streamline acquisition processes. The establishment of Integrated Battle Groups (IBGs) and the integration of advanced technologies like AESA radar and electronic warfare suites will further strengthen India’s operational readiness.
Conclusion
India’s defense deals in 2025 mark a pivotal step toward modernizing its armed forces and achieving self-reliance in defense manufacturing. From indigenous artillery and helicopters to advanced drones and submarines, these acquisitions enhance India’s ability to counter multi-front threats while fostering economic growth and global partnerships. As India navigates a complex geopolitical landscape, these strategic investments will play a crucial role in ensuring national security and establishing the country as a formidable defense power.
