Indian Navy Set to Seal Three Major Defence Deals Worth ₹1.25 Lakh Crore By Fiscal Year-End

As the end of the fiscal year approaches, the Indian Navy is gearing up to finalize three substantial defence deals that are set to transform its operational capabilities. These agreements, valued at a combined ₹1.25 lakh crore, are pivotal to the Navy’s ongoing modernization efforts and aim to enhance its surveillance and combat readiness.

The primary focus of these deals includes the acquisition of advanced drones, submarines, and fighter jets. Specifically, the Navy is looking to procure 31 MQ-9B drones, three additional Scorpene-class submarines, and 26 Rafale-M fighter jets. This ambitious plan is supported by an unprecedented capital budget of ₹61,000 crore, allocated by the Indian government to bolster the Navy's modernization.

MQ-9B Drone Deal: Nearing the Finish Line

The deal for 31 MQ-9B drones is one of the most anticipated components of this procurement spree. Designed for anti-submarine warfare, these drones are poised to enhance the Navy’s surveillance capabilities significantly. The contract, which falls under a Letter of Acceptance from the U.S. government, is expected to be finalized before October 31. The arrangement will see the Indian Navy receiving 15 of these drones, while the remaining units will be distributed between the Army and Air Force. Notably, the deal includes the integration of Indian weapon systems onto the drones, including a planned incorporation of the Naval Anti-Ship Missile (Short Range) once development is completed.

Expansion of Scorpene Submarines

Another crucial aspect of the Navy's procurement strategy is the expansion of its submarine fleet. The deal for three additional Scorpene-class submarines, valued at approximately ₹40,000 crore, is progressing well. These submarines will be built in collaboration between France’s Naval Group and India’s Mazagon Dockyard Limited (MDL). The new submarines will feature cutting-edge technology and an indigenous combat management system, reflecting significant input from Indian firms. Bharat Electronics Limited (BEL) will play a key role in this program, underscoring the project’s commitment to integrating local expertise and technology.

Rafale-M Jets for INS Vikrant

The third major deal involves the acquisition of 26 Rafale-M fighter jets, which are intended for deployment on the INS Vikrant, India’s indigenous aircraft carrier. This ₹50,000 crore deal is progressing with a similar framework to the earlier procurement of 36 Rafale jets for the Indian Air Force. The decision has been made not to integrate the indigenous Uttam radar system into the Rafale-M fleet to avoid increasing costs and project delays. These jets will play a crucial role in enhancing the air power of the INS Vikrant, bolstering its operational capabilities on the high seas.

Strengthening Naval Capabilities

These substantial defence deals highlight the Indian Navy’s strategic focus on upgrading its capabilities in both surveillance and underwater warfare. By modernizing its fleet with advanced drones, submarines, and fighter jets, the Navy is positioning itself to significantly enhance its operational effectiveness and readiness in the years ahead. The forthcoming contracts are a testament to the Navy’s commitment to maintaining a robust and technologically advanced fleet, crucial for India’s maritime security.

This push for modernization represents a critical investment in the Navy's future, ensuring that it remains well-equipped to address emerging threats and challenges in the maritime domain.