India-Pakistan Tensions to Reshape Defence Procurement Strategy

Significant Defence Budget Raise on Anvil Amid Rethink after India-Pakistan Conflicts

By MANISH ANAND

NEW DELHI, May 18, 2025 – In the aftermath of India-Pakistan conflicts, defence procurement may change in a significant way. The Centre is gearing up to significantly raise not only budget for defence but also the whole approach, said sources.

“A raise of ₹50,000 crore over and above the Budget proposal for defence has already been put in place. We assess that the defence budget will be significantly higher,” said sources.

In the midst of India-Pakistan conflicts, the government officials had held deliberations with the Indian defence manufacturers. “The message to the Indian defence manufacturers is clear. They not only have to raise the productions, but also technologically advance their products by aligning with requirements of electronic warfare,” sources added.

It has also been reliably learnt that the China factor will weigh on India’s defence procurements from other nations. “There is a clear sense that China tested its military hardware during the India-Pakistan conflicts. China’s linkages with other nations will be under scrutiny,” added the sources.

They also stated that India’s weapons used during the conflicts will be upgraded to the next versions. “The possibility of their scrutiny by enemies will spur further upgradation to the advanced versions. Technological ramp up with a strong budgetary support may be expected,” sources added.

They also referred to Prime Minister Narendra Modi’s reiteration after the ceasefire between India and Pakistan on the indigenous defence capabilities. “The military hardware of a number of nations has been tested in India-Pakistan conflicts. The efficacy of weapons system of these nations will be under sharp lens. The conclusions will weigh of defence procurement policy from abroad,” sources added.

Pakistan banked on the US, China, and Turkey sourced weapons systems. India deployed indigenous and foreign weapons system during the conflicts.

Sources also stated that the “Indian startup ecosystem has announced their arrival in defence manufacturing ecosystem, and they will an accelerated support to raise the technological bar in the coming years”.

Several drone manufacturers have emerged from the Indian startup ecosystem. A number of private enterprises have also established their footprints who have been mentored by the Defence Research and Development Organisation (DRDO).

“Nations under scanner for their diverse roles in the India-Pakistan conflicts are already under scrutiny. India may examine scope of defence collaborations with such nations. India may look for deeper defence ties with nations which unconditionally stood with us during the conflicts,” added the sources.

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About The Author

Manish Anand

Manish Anand is a senior journalist with more than two decades of hardcore reporting on beats such as Prime Minister’s Office, Parliament, BJP, Congress, Planning Commission, NITI Aayog, and scores of Union Ministries.

His past has been with The New Indian Express, The Asian Age/Deccan Chronicle, and The Statesman.

For about 15 years, Manish was also a regular commentator and host for talks on AIR on foreign affairs.

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