Defence Ministry Secures ₹4,600 Crore Contracts for Army and Navy Modernisation
Defence Ministry signs ₹4,600 crore contracts for Army and Navy, boosting indigenous defence manufacturing.
Photo by Belov Sergey
The Ministry of Defence has signed two significant contracts worth over ₹4,600 crore to bolster the capabilities of the Indian Army and Navy. These agreements include the procurement of 70,000 SIG Sauer assault rifles for the Army and the acquisition of Heavy Weight Torpedoes for the Navy.
A crucial aspect of these contracts is the emphasis on indigenous manufacturing, with a substantial portion of the procurement being sourced from Indian vendors, aligning with the 'Make in India' and 'Aatmanirbhar Bharat' initiatives in the defence sector. This move is vital for enhancing national security and promoting self-reliance in defence production.
Key Facts
Defence Ministry signed contracts worth over ₹4,600 crore.
Procurement for Indian Army and Navy.
Includes 70,000 SIG Sauer assault rifles for Army.
Includes Heavy Weight Torpedoes for Navy.
Emphasis on indigenous manufacturing ('Make in India', 'Aatmanirbhar Bharat').
UPSC Exam Angles
Defence Procurement Policy (DAP 2020) and its categories
'Aatmanirbhar Bharat' and 'Make in India' in defence
Role of Public and Private Sector in defence manufacturing
Strategic importance of indigenous defence production
Challenges and opportunities in defence R&D and technology transfer
Visual Insights
Defence Modernisation Contracts: Key Highlights (Dec 2025)
This dashboard presents the crucial figures from the recent Ministry of Defence contracts, highlighting the scale of procurement and the strategic focus on indigenous manufacturing.
- Total Contract Value
- ₹4,600 Crore
- SIG Sauer Assault Rifles
- 70,000 Units
- Heavy Weight Torpedoes
- For Indian Navy
- Indigenous Manufacturing Focus
- Substantial Portion
Significant investment in enhancing the capabilities of the Indian Army and Navy, aligning with long-term modernization plans.
Procurement for the Indian Army, crucial for infantry modernization and operational effectiveness.
Enhances the anti-submarine warfare capabilities of the Indian Navy, critical for maritime security.
A core aspect of the contracts, promoting 'Make in India' and 'Aatmanirbhar Bharat' in defence production.
More Information
Background
Latest Developments
Practice Questions (MCQs)
1. With reference to India's defence procurement and 'Aatmanirbhar Bharat' initiative, consider the following statements: 1. The recent contracts for the Indian Army and Navy primarily emphasize procurement from foreign vendors to ensure rapid modernization. 2. Heavy Weight Torpedoes are primarily used by the Navy for anti-submarine warfare. 3. The Defence Acquisition Procedure (DAP) 2020 prioritizes procurement categories that involve indigenous design, development, and manufacturing. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.3 only
- D.1, 2 and 3
Show Answer
Answer: B
Statement 1 is incorrect. The news explicitly states that a crucial aspect of these contracts is the emphasis on indigenous manufacturing, aligning with 'Make in India' and 'Aatmanirbhar Bharat'. Statement 2 is correct. Heavy Weight Torpedoes are indeed a crucial weapon for naval forces, primarily used for anti-submarine warfare (ASW) against enemy submarines. Statement 3 is correct. DAP 2020, building on previous policies, places significant emphasis on indigenization, prioritizing 'Buy (Indian-IDDM)' (Indigenously Designed, Developed and Manufactured) and 'Buy (Indian)' categories to boost domestic defence industry.
2. In the context of 'Aatmanirbhar Bharat' initiative in the defence sector, which of the following statements is/are correct? 1. It includes a 'Positive Indigenisation List' of items that can only be procured from domestic sources. 2. The Defence Production and Export Promotion Policy (DPEPP) 2020 aims to achieve a turnover of ₹1,75,000 Crore in defence manufacturing by 2025. 3. The Strategic Partnership Model under DAP 2020 encourages private sector participation in manufacturing high-tech defence equipment. Select the correct answer using the code given below:
- A.1 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Show Answer
Answer: D
Statement 1 is correct. The Ministry of Defence has periodically released 'Positive Indigenisation Lists' (now called 'Positive Indigenisation Lists' for Services and DPSUs) of various defence equipment that will be indigenized and procured only from domestic sources over a specified timeline. Statement 2 is correct. The DPEPP 2020 indeed sets an ambitious target of achieving a turnover of ₹1,75,000 Crore (US$ 25 Billion) in defence manufacturing, including an export target of ₹35,000 Crore (US$ 5 Billion) by 2025. Statement 3 is correct. The Strategic Partnership (SP) Model, introduced in DAP 2020 (and earlier in DPP 2016), aims to create a vibrant defence industrial ecosystem by involving private sector players in the manufacturing of high-tech defence equipment like submarines, fighter aircraft, helicopters, and armoured vehicles.
3. Which of the following statements regarding defence manufacturing and procurement in India is NOT correct?
- A.Ordnance Factory Board (OFB) has been corporatized into seven new Defence Public Sector Undertakings (DPSUs).
- B.Bharat Dynamics Limited (BDL) is a primary manufacturer of torpedoes and anti-tank guided missiles in India.
- C.The private sector is now permitted to export defence equipment without any prior approval from the Ministry of Defence.
- D.India's defence budget allocation for capital expenditure has consistently increased over the last decade to support modernization.
Show Answer
Answer: C
Statement A is correct. The government corporatized the Ordnance Factory Board (OFB) into seven new 100% government-owned corporate entities (DPSUs) in 2021 to improve efficiency and accountability. Statement B is correct. Bharat Dynamics Limited (BDL) is a major Indian manufacturer of ammunition and missile systems, including various types of torpedoes (e.g., Varunastra) and anti-tank guided missiles. Statement C is incorrect. While the government has simplified the defence export policy and made it more industry-friendly, private sector companies still require specific licenses and approvals from the Ministry of Defence (Department of Defence Production) for exporting defence equipment, especially for sensitive items. Exports are not entirely unregulated. Statement D is correct. India's capital outlay for defence has generally seen an upward trend over the last decade, reflecting the government's focus on modernizing the armed forces and acquiring new equipment.