!-- Google tag (gtag.js) -->

India Approves ‘Unprecedented’ $10bn Defence Modernisation Plan

The Indian Army has been pushing for the development of light tanks for mountain combat amid an enduring conflict with China along the LAC.

December 23, 2022
India Approves ‘Unprecedented’ $10bn Defence Modernisation Plan
Indian Defence Minister Rajnath Singh
IMAGE SOURCE: IANS

On Thursday, amid frequent border skirmishes at the Indian-Chinese Line of Actual Control (LAC), Indian Defence Minister Rajnath Singh announced that the Defence Acquisition Council has approved arms procurement valued at Rs. 84,328 crores ($10.17 billion) for the Indian armed forces.

In a statement, the Indian Ministry of Defence said the Acceptance of Necessity (AoN) for 24 Capital Acquisition Proposals (CAP) had been greenlighted—six each for the Indian Army and the Indian Air Force, 10 for the Indian Navy, and two for the Indian Coast guard. Of these, 21 proposals worth Rs 82,127 crore ($9.9 billion), or 97.4%, will be procured from indigenous sources.

“This unprecedented initiative of DAC will not only modernise the Armed Forces but also provide substantial boost to the defence industry to achieve the goal of ‘Aatmanirbhar Bharat,’” it affirmed.

Relying on domestic companies for military equipment has been a high priority for the government. In this regard, India has levied a phased import ban on 411 different weapons and systems in the last two years; they are expected to be sourced domestically in phases over the next five to six years. Furthermore, the government has allocated Rs. 84,598 crores ($10.2 billion), 68% of the military’s capital acquisition budget for 2022-23, to purchase from Indian companies.


The central government’s purchases from local companies have been increasing steadily, with the Centre earmarking 64%, or Rs. 70,221 crores ($8.4 billion), in 2021-22, and 58%, or Rs. 51,000 crores ($6.1 billion), in 2020-21.

The AoNs will arm the Indian Army with equipment such as Futuristic Infantry Combat Vehicles (FICVs), light tanks, and mounted gun systems, along with ballistic helmets with an enhanced protection level, thus “providing a quantum jump” to the Army’s operational preparedness.

The FICV (named “Zorawar,” after Dogra king Gulab Singh’s legendary general, Zorawar Singh) is one of the crucial indigenous capabilities that the Army is looking forward to, apart from night-fighting gear, anti-drone weapons, and intelligence, surveillance and reconnaissance (ISR) platforms.

The light tanks will be fitted with cutting-edge technology, including drone integration, active protection systems, and superior situational awareness. The army predicts that the light tank prototype development and trials will be completed in three years. It has been pushing for the development of such equipment for mountain combat amid an enduring 30-month conflict with the Chinese army at the LAC in eastern Ladakh and the northeast.

Earlier this month, Indian and Chinese troops clashed along the disputed border in in Yangtse, 35 kilometres northeast of the Tawang sector in Arunachal Pradesh, leaving several injured on both sides. In a statement, the Indian Army said that troops from both sides “immediately disengaged” after the clash after Chinese soldiers reportedly encroached on an area near the LAC, where both sides had agreed not to patrol.

According to a source from the Indian Army, military commanders met immediately to hold a de-escalatory “flag meeting” in order to “discuss the issue in accordance with structured mechanisms to restore peace and tranquility.”

Another source from the Indian Army revealed that at least six Indian soldiers were injured in the incident. Indian media reports, however, claimed that 20 Indian soldiers and “a much higher number on the Chinese side” sustained minor injuries. They also stated that around 300 People’s Liberation Army (PLA) soldiers were involved in the face-off.

The latest clash marks their first such confrontation since the deadly Galwan Valley clash in June 2020, which killed 20 Indian soldiers and as many as 45 Chinese soldiers, thereby reigniting tensions after a relatively peaceful period since the 1962 Indo-Chinese war.

Moreover, India has reportedly been covering up the frequency and extent of its border clashes with China along the LAC in order to prevent the public from panicking.

In fact, following their most recent confrontation in the Tawang sector, senior Indian Army sources told The Telegraph that several incidents occur in the northern state of Arunachal Pradesh every month, wherein soldiers sometimes engage in “violent hand-to-hand combat, often using clubs and other homemade melee weapons.”

“Face-offs with the PLA have become a common feature along the border in Arunachal Pradesh, particularly in the Yangtse area,” a senior Indian Army officer told the newspaper, adding, “They have happened on average two or three times a month, recently, and the incursions have increased in frequency over the last two years.”

Since the Galwan Valley incident, India and China have held 17 rounds of Senior Commanders-level meetings, which have resulted in the mutually agreed “no patrolling zones” and complete disengagement in the northern and southern banks of the Pangong Tso area.

In fact, the two sides began the disengagement process at Gogra Hot Springs (PP-15) on 8 September as per an agreement reached at the 16th round of the India-China Corps Commander Level Meeting in July.

They also withdrew troops and took down temporary infrastructure set up along the LAC for the first time since the 2020 clash.

The two sides remain deadlocked in discussions on the Depsang Bulge in the Daulet Beg Oldi sector and the Charding Nullah Junction in the Demchok sector. As a result, they maintain around 60,000 troops along the LAC.

They held their 17th commander-level meeting on Tuesday, during which they vowed to “work for the resolution of the remaining issues” in their territorial dispute.

Meanwhile, on Thursday, the Indian Defence Ministry also sanctioned the acquisition of naval anti-ship missiles, multi-purpose vessels, and High Endurance Autonomous Vehicles to “enhance maritime strength.” Furthermore, the Air Force will be significantly strengthened with a new range of missile systems, long-range guided bombs, range augmentation kits for conventional bombs, and advanced surveillance systems.

Additionally, the Coast Guard’s surveillance capabilities will be taken to “new heights” with the acquisition of Next Generation Offshore Patrol Vessels.