Rs 2.38 lakh crore defence modernisation: India greenlights S-400 missiles, 60 transport planes

In a decisive move to strengthen its military capabilities, India on Friday approved procurement of five additional S-400 missile systems from Russia, 60 medium transport aircraft, and several other key defence platforms, at a total outlay of Rs 2.38 lakh crore .

The Defence Acquisition Council (DAC), chaired by Defence Minister Rajnath Singh , cleared the proposals to bolster the combat readiness of the Indian Air Force (IAF) and the Indian Army . While the ministry did not officially disclose exact numbers, sources confirmed that the order includes five S-400 units and 60 transport aircraft , a mix of fly-away imports and Indian production.

The new transport aircraft are intended to replace the IAF’s aging AN-32 and IL-76 fleets , with top contenders being Lockheed Martin C-130 J Super Hercules, Embraer KC-390, and Airbus A-400M . Of the 60 aircraft, 12 will arrive ready-to-fly, while 48 will be manufactured in India under local production agreements.

The additional S-400 systems come after their proven performance during Operation Sindoor , which showcased India’s long-range air defence dominance during last year’s May hostilities with Pakistan. Sources say the new procurement is a “follow-on” to the previous USD 5 billion deal with Russia signed in 2018, and India does not anticipate obstacles from US CAATSA sanctions .

Beyond missiles and aircraft, the DAC also approved the induction of remotely piloted strike aircraft, overhaul of Su-30 aero engines, the Dhanush gun system , and other modernization projects. These upgrades will enhance stealth, surveillance, operational range, and artillery effectiveness across terrains.

For the Army, approvals include air defence tracked systems, high-capacity radio relays, runway-independent aerial surveillance systems, and armoured-piercing tank ammunition , strengthening real-time battlefield awareness and firepower. The Coast Guard will also receive heavy-duty air-cushion vehicles for high-speed patrolling, reconnaissance, and rescue operations.

According to the ministry, the DAC’s approvals for FY 2025-26 , totaling Rs 6.73 lakh crore across 55 proposals, and capital procurement contracts of Rs 2.28 lakh crore, mark the highest in any financial year, underscoring India’s commitment to modernising its defence infrastructure.

“The S-400 will counter long-range aerial threats, while new transport aircraft and strike systems will enhance operational readiness, mobility, and intelligence capabilities,” the ministry said.