India Invests ₹39,125 Crore in Domestic Upgrades of BrahMos, Radars, and Aero Engines

In a strategic move signaling a major shift towards self-sufficiency, India's Ministry of Defence (MoD) announced on March 1st the signing of five substantial capital acquisition contracts.

The contracts, totaling ₹39,125.39 crore, represent a significant investment in enhancing India's indigenous defence capabilities, reducing dependence on foreign suppliers, and bolstering national security.

Key Contracts and Their Impact​

The contracts encompass a diverse range of critical defence systems, including:

• Aero-engines for MiG-29 Aircraft: Hindustan Aeronautics Limited (HAL) will manufacture RD-33 aero-engines under a Technology Transfer Agreement with Russia. This ₹5,249.72 crore contract will ensure sustained operational capability of India's MiG-29 fleet and increase the indigenous content of future repair and overhaul projects.
• Close-in Weapon Systems (CIWS) and High-Power Radars (HPR): Two contracts with Larsen & Toubro (L&T) will provide advanced CIWS for point defence and HPRs with enhanced surveillance capabilities. These acquisitions will modernize the Indian Air Force's (IAF) air defence systems. Notably, the HPR marks a milestone as the first of its kind to be built by India's private sector.
• BrahMos Supersonic Cruise Missiles: Two contracts with BrahMos Aerospace Private Limited (BAPL) will procure both land-based and ship-borne variants of the BrahMos system. These supersonic missiles, a joint venture between India and Russia, significantly enhance the Indian Navy's maritime strike capabilities and contribute to India's overall defence posture.

Strategic Importance: Building Atmanirbharta​

The MoD emphasized that these deals underscore India's commitment to "Atmanirbharta in Defence," or self-reliance in defence production. By strengthening indigenous manufacturing capabilities, India aims to reduce its reliance on foreign suppliers, promote domestic industry, conserve foreign exchange reserves, and enhance strategic autonomy.

Industry and Employment Benefits​

Beyond boosting India's military might, these contracts are projected to generate substantial employment opportunities within both the Joint Venture entity (BAPL) and ancillary industries. Estimates suggest the creation of millions of man-days of employment, revitalizing the domestic defence sector.

Conclusion​

The signing of these major contracts marks a decisive step for India's defence establishment. The emphasis on domestic production not only strengthens India's military preparedness but also positions its defence industry as a potential contributor to economic growth and technological innovation.