On August 5, 2025, the Indian Defence Acquisition Council, led by Defence Minister Rajnath Singh, approved a landmark military modernization package worth approximately Rs 67,000 crore. The approval focuses on significantly enhancing the capabilities of the Army, Navy, and Air Force to address evolving security threats. The procurement includes 87 Medium Altitude Long Endurance (MALE) drones for all three services to bolster round-the-clock surveillance and combat operations, advanced thermal imaging night sights for the Army’s BMP vehicles to enable night-time manoeuvres, and over 110 air-launched BrahMos missiles. The Navy will receive new Compact Autonomous Surface Craft for anti-submarine operations, upgraded BrahMos fire control systems and launchers, and enhancements to the BARAK-1 air defence missile system. The Air Force is set to acquire specialized mountain radars for improved surveillance along India’s mountainous borders and upgrades to the SAKSHAM/SPYDER weapon systems to reinforce integrated air defence. The approvals extend to the maintenance of US-origin C-17 and C-130J aircraft and the Russian-origin S-400 missile systems, reflecting India’s balanced approach to strategic military partnerships. These decisions come in the aftermath of recent operations, including Operation Sindoor, underscoring a push for advanced indigenous technologies. Defence sector stocks such as Bharat Electronics and Bharat Dynamics registered notable gains on August 6, 2025, on expectations of substantial new contracts following the announcement.