India’s defence spending to reach $543.1bn during 2026-30
India’s defence spending is projected to reach $543.1bn over the period from 2026 to 2030, driven by the nation’s ongoing efforts to modernise its military capabilities, according to data and analytics company GlobalData.
The report, entitled India Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2025-30, suggests that the acquisition budget will account for 31% of projected expenditure.
The modernisation of the country’s defence forces is primarily influenced by the need to maintain a strategic advantage over Pakistan and address weaknesses unveiled during Operation Sindoor, a recent military operation launched by India against Pakistan.
In light of Operation Sindoor and the subsequent munitions depletion, the Indian government has allocated emergency funding of Rs500bn ($6bn) for immediate procurement of weapons systems.
The Indian Army is in the process of integrating a platoon of first-person-view uncrewed aerial vehicles (UAVs) into its infantry battalions and expanding its use of uncrewed ground vehicles.
In December 2024, the Indian Army signed a Rs76.287bn deal with Larsen & Toubro for K9 Vajra-T self-propelled artillery platforms.
GlobalData also expects an extensive retrofit upgrade on armoured forces to include modern armour, thermal imaging, active protection systems and integrated UAV support.
In terms of logistics and mobilisation, there is an emphasis on developing compact fighting formations and pre-positioned military stockpiles near border areas.
Alleged combat losses by the Indian Air Force during the operation prompted an urgent review of military readiness against potential conflicts with neighbouring countries.
GlobalData aerospace and defence analyst Abhijit Apsingikar stated: “The persistent threat of cross-border terrorism originating from Pakistan has compelled India to take comprehensive measures to mitigate this risk.
“There will likely be an emphasis on acquiring relatively smaller yet more survivable surveillance platforms, and the Indian Ministry of Defense (MoD) is expected to expand its initial order for six Netra Mk-1A airborne early warning and control aircraft and expedite their induction for wider deployment.”
The Indian government is expected to approve acquisitions aimed at bolstering electronic warfare capabilities and developing long-range missiles such as the Astra MK-III.
The Indian MoD is also in the process of approving an order for an additional 97 Tejas Mk-1A multirole fighter jets, supplementing the 83 ordered in 2021.
The Indian Navy is also expected to focus on acquiring additional P-8I Poseidon maritime patrol aircraft.
It will also expedite the induction of C-295-based patrol aircraft for medium-range reconnaissance.
In December 2024, the Navy tested the Matangi autonomous uncrewed surface vessel.
The Indian government is pursuing the development of advanced underwater autonomous technologies such as the high-endurance autonomous underwater vehicle.
Alongside this, approval has been granted for the construction of an extra-large uncrewed underwater vehicle, dubbed Jalkalpi, with plans for its integration into the naval fleet between 2025 and 2027.
“The simultaneous acceleration of all these procurement programmes by the Indian Air Force, Army and Navy indicates that India intends to regain and maintain its qualitative military edge over Pakistan and achieve reasonable parity with China’s military capabilities over the next decade. However, financing these initiatives adequately will remain a significant challenge. Moving forward, the Indian government is expected to consider creating appropriate regulations to establish formal funding channels for emergency procurements, with such funding provisions anticipated to reach as much as $11.1bn by 2030,” Apsingikar stated.
