Picture a nation redefining its defence capabilities, weaving together cutting-edge indigenous weapons with strategic foreign acquisitions to safeguard its borders and project global influence. That’s India military modernization in full swing! From the sleek LCA Tejas slicing through the skies to the powerful BrahMos missile striking with pinpoint accuracy, India is building a self-reliant defence ecosystem. Yet, high-profile imports like Rafale jets and S-400 systems play a crucial role. In this blog, we’ll unpack the 2025-26 defence budget, explore the transformative Operation Sindoor, and evaluate whether Make in India can surpass foreign tech. Ready to dive into India’s military modernization journey? Let’s get started!

The LCA Tejas, a proud symbol of India’s indigenous defence prowess.
Decoding India’s Defence Budget: Fueling Military Modernization
The foundation of India military modernization is its defence budget, a carefully crafted plan that balances innovation, operational readiness, and welfare for millions of personnel. For FY 2024-25, India allocated ₹6.22 lakh crore (≈$75 billion), roughly 1.89% of GDP, to defence. The 2025-26 Budget Estimate boosts this to ₹6.81 lakh crore, a 9.5% increase, underscoring India’s resolve to strengthen its armed forces. The Ministry of Defence notes that ₹1.80 lakh crore is set aside for capital outlay, with ₹1.48 lakh crore (82.6%) earmarked for acquiring new equipment, from missiles to fighter jets.
Why is this budget so critical? The capital outlay directly funds India military modernization by enabling the purchase of advanced systems and supporting research and development. For example, the Defence Research and Development Organisation (DRDO) received a 12% funding increase to drive projects like stealth fighters and next-gen missiles. Pensions for veterans, a significant expense, rose 13.9% to ₹1.61 lakh crore, ensuring welfare for retired personnel. The Agnipath scheme, designed to create a younger, more agile force, saw an 85% funding surge to ₹11,040 crore. However, with defence spending still below 2% of GDP, some experts argue that India military modernization needs even greater investment to meet rising security challenges.
Budget Head | 2024-25 BE (₹ crore) | 2025-26 BE (₹ crore) | Change |
---|---|---|---|
MoD (Civil) | 25,963.18 | 28,682.97 | +10.5% |
Defence Services (Revenue) | 2,82,772.67 | 3,11,732.30 | +10.2% |
Capital Outlay (Def. Svcs.) | 1,72,000 | 1,80,000 | +4.7% |
Defence Pensions | 1,41,205 | 1,60,795 | +13.9% |
Total Defence Budget | 6,21,940.85 | 6,81,210.27 | +9.5% |
Source: Ministry of Defence, Budget 2025-26
Fun Fact: Since 2016, capital expenditure for India military modernization has doubled, growing at a 7.8% CAGR, with 75% of procurement now reserved for Indian companies!
Make in India: Crafting Indigenous Defence Powerhouses
The Make in India initiative is the driving force behind India military modernization, empowering Indian engineers and industries to create world-class weapons that reduce reliance on imports. By fostering a robust defence ecosystem, India is producing systems that rival global standards. Here are some standout indigenous weapons India has developed:
- LCA Tejas Fighter Jet: Built by Hindustan Aeronautics Limited (HAL), this 4.5-generation jet is a cornerstone of India’s aerospace ambitions. The Indian Air Force has ordered 83 Mk-1A units, with plans for 220 more.
- BrahMos Missile: A supersonic cruise missile, 83% indigenized, developed in collaboration with Russia. Its new Lucknow facility produces 100–150 missiles annually for domestic use and exports to countries like the Philippines.
- Akash SAM: A medium-range surface-to-air missile that strengthens India’s air defence, complementing imported systems.
- Pinaka Rocket System: A multi-barrel rocket launcher providing long-range artillery support, with the upgraded Mk-II now in service.
- INS Vikrant: India’s first indigenous aircraft carrier, showcasing the country’s naval shipbuilding expertise.
- SMART Drones: DRDO’s loitering munitions, debuted in combat during Operation Sindoor, proving India’s drone technology is world-class.
These systems embody Atmanirbhar Bharat (self-reliant India). Defence production has surged from ₹40,000 crore in 2014 to ₹1.27 lakh crore in 2025, with exports reaching ₹23,622 crore in 2024-25. The Press Information Bureau reports a 30-fold export growth over a decade, driven by systems like BrahMos. This progress has reduced India’s arms imports by 9.3%, according to SIPRI, saving foreign currency and creating thousands of local jobs.

BrahMos missile, a flagship of India’s indigenous defence technology.
Foreign Imports: Bridging Critical Capability Gaps
While indigenous weapons India are gaining momentum, India military modernization still depends on foreign technology to address immediate capability gaps. These high-tech imports provide battle-proven systems that India’s developing industries can’t yet match. Key acquisitions include:
- Rafale Jets (France): India acquired 36 Rafale fighters for $8.7 billion, delivered by 2022, with 26 Rafale Marine jets ordered in 2025 for naval operations. These jets offer unmatched air combat capabilities.
- S-400 Triumf (Russia): A $5.5 billion deal for five regiments, with three operational by 2025, enhancing air defence along India’s borders.
- Other Imports: Apache and Chinook helicopters (USA), Barak-8 missiles (Israel), P-8I maritime patrol aircraft (USA), and Storm Shadow missiles (France/UK) address urgent operational needs.
These foreign defence tech acquisitions come with high costs and geopolitical risks, such as US sanctions concerns over the S-400 deal. They also require maintenance in foreign currency, creating long-term dependencies. However, they provide immediate, high-performance solutions, allowing India’s indigenous programs time to mature.
Quick Stat: The Rafale deal cost ₹4.2 billion for 36 jets, while the S-400 deal was ₹35,000 crore—significant investments for India military modernization!
Operation Sindoor: A Real-World Test of India’s Arsenal
In May 2025, Operation Sindoor demonstrated India military modernization in a high-stakes retaliatory strike against Pakistan-based terror camps. This multi-domain operation, spanning air, ground, and cyber domains, showcased a seamless blend of indigenous and imported systems. Here’s a breakdown of the key systems used:
- Anti-Drone Systems: DRDO’s counter-UAV technology neutralized Pakistani drone swarms, marking a major win for homegrown innovation.
- BrahMos Missiles: Delivered pinpoint strikes, with commanders praising their “effective, accurate, and reliable” performance.
- Air Defence: Indigenous Akash SAMs, alongside Russian S-400 and Israeli Barak-8 systems, created an impenetrable shield over Indian airspace.
- Rafale Jets: Conducted deep strikes with imported Storm Shadow missiles and Hammer bombs, highlighting the precision of foreign tech.
- Loitering Munitions: DRDO’s SMART drones and locally built Harop drones (originally Israeli) destroyed enemy targets, marking a milestone for India’s drone warfare capabilities.
Described as “Atmanirbhar-based warfare,” Operation Sindoor underscored the dominance of indigenous weapons India, with homegrown systems forming the operation’s backbone. Brigadier-level briefings highlighted the “integrated, precise, and prompt” response, demonstrating India’s ability to combine local and foreign tech effectively.

Operation Sindoor, a testament to India’s integrated defence capabilities.
Indigenous vs. Foreign Tech: A Cost-Benefit Breakdown
What’s the smarter strategy for India military modernization—building weapons at home or buying them abroad? Let’s weigh the pros and cons:
Indigenous Defence Tech
Pros:
- Strategic Autonomy: Homegrown systems like BrahMos ensure India remains independent of foreign suppliers during crises.
- Economic Boost: Defence production creates jobs and fuels local industries, with exports like BrahMos to the Philippines generating revenue.
- Customization: Systems like Tejas are tailored to India’s unique operational needs, unlike off-the-shelf imports.
Cons:
- High Costs: R&D for projects like Tejas and Arjun tanks requires billions and decades, with initial prototypes often lagging global standards.
- Delays: Long development timelines can create capability gaps, necessitating interim imports.
Foreign Defence Tech
Pros:
- Instant Access: Imports like Rafale and S-400 deliver cutting-edge technology immediately, bypassing years of R&D.
- Proven Performance: These systems are battle-tested, offering reliability in high-stakes scenarios.
Cons:
- Dependency: Reliance on foreign OEMs for maintenance and upgrades drains foreign exchange reserves.
- Geopolitical Risks: Deals like the S-400 faced US sanction threats, highlighting the challenges of foreign acquisitions.
SIPRI data indicates that India’s arms imports dropped 9.3% as indigenous weapons India gained traction, while exports are on the rise. The Defence Acquisition Procedure 2020 prioritizes domestic vendors, ensuring India military modernization leans toward self-reliance.
Big Goal: India aims to triple defence production by 2029, targeting ₹50,000 crore in exports, a bold step for India military modernization!
Conclusion: Charting a Self-Reliant Future
India military modernization is an inspiring journey from import dependency to homegrown excellence. The 2025-26 defence budget, the success of Operation Sindoor, and the rise of Make in India initiatives reflect India’s determination to build its own arsenal. Systems like the AMCA stealth fighter, next-generation submarines, and advanced UAVs promise a future where India designs most of its weapons. Yet, strategic imports like Rafale and S-400 remain essential for addressing immediate threats.
As Defence Minister Rajnath Singh eloquently stated, “Self-reliance doesn’t mean isolation—it’s about building strength to contribute globally.” By investing in R&D, fostering private-sector innovation, and balancing global partnerships, India military modernization is positioning the nation as a defence powerhouse. Whether it’s the roar of a Tejas jet or the precision of a BrahMos missile, India’s defence story is one of ambition, innovation, and national pride.Explore More at MoD’s Official Site
Frequently Asked Questions (FAQs)
1. What is the defence budget for India in 2025-26?
The 2025-26 defence budget is ₹6.81 lakh crore, up 9.5% from ₹6.22 lakh crore, with ₹1.80 lakh crore allocated for modernization.
2. How does Make in India drive India military modernization?
It promotes indigenous weapons like Tejas, BrahMos, and Akash, reducing import dependency, creating jobs, and boosting exports.
3. What was Operation Sindoor, and why was it significant?
Operation Sindoor (May 2025) was a strike against terror camps, showcasing a blend of indigenous and imported systems, proving India’s combat readiness.
4. Why does India continue to import defence equipment?
Imports like Rafale and S-400 provide immediate, advanced capabilities while indigenous technology continues to develop.