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The government signed a series of major defence contracts during 2025-26 for fighter aircraft, armoured warfare, small arms, naval systems, and indigenous propulsion technologies, according to the recently released Ministry of Defence’s Annual Report 2025-26.
Among the most significant agreements was the contract for 97 LCA Mk1A fighter aircraft, with deliveries scheduled to commence in September 2027 and be completed by September 2033. The report notes that the contract covers 68 fighters and 20 twin-seat aircraft.
Another major agreement was signed for Rafale Marine (Rafale-M) fighter aircraft for the Indian Navy. The Ministry says the acquisition is intended to strengthen the strike capability of the carrier battle group, enhance sea control and power projection, and support deterrence in the maritime domain.
Significantly, the Rafale-M agreement includes transfer of technology (ToT) for integration of indigenous weapons in India, linking the acquisition with the government’s broader push for greater domestic participation in advanced combat systems.
The contracts also indicate a growing emphasis on indigenous manufacturing across relatively smaller but operationally important systems.
An indigenous Articulated All-Terrain Vehicle (AATV) developed by Larsen & Toubro has been contracted for operations in difficult terrain, including the mud flats, salt plains, snowbound and permafrost areas of Eastern Ladakh and Kutch. The twin-cabin vehicle has STANAG Level 1 ballistic protection, can carry 10 personnel and has a 150-km operating range with full load.
The Ministry has also highlighted the indigenous 5.56×45 mm Close Quarter Battle Carbine, jointly developed by Bharat Forge and PLR Systems. The lightweight carbine has a 200-metre range, a 30-round magazine and supports both single-shot and automatic fire.
For the Army’s T-90 fleet, Bharat Dynamics Limited has developed the indigenous INVAR 3UBK-20 missile, a laser-guided second-generation-plus weapon with an effective range of up to 5,000 metres and designed to engage modern and future tanks and armoured vehicles.
A potentially significant industrial contract is the Make-I Project Sanction Order with Kirloskar Oil Engines Ltd to develop a 6 MW medium-speed marine diesel engine. The prototype is to have more than 50% indigenous content and will receive 70% government funding. The project also includes development of a 3–10 MW diesel engine design for propulsion and power generation on Indian Navy and Coast Guard ships.
The report also highlights procurement of indigenous underwater systems. Contracts for Under Water Remotely Operated Vehicles (UWROVs) were concluded with Kochi-based IROV Tech and Rourkela-based Coratia Tech, both winners of an iDEX challenge. The systems will support underwater inspection, minor salvage and metal-thickness gauging.
An Under Water Vision System, developed under the iDEX framework by Bengaluru-based TSC Tech, has also progressed to procurement. It is designed for diver operations up to 75 metres, with live HD/4K video, metal detection and underwater communications.
Taken together, the contracts point to a procurement pattern that combines major combat platforms such as the Rafale-M and LCA Mk1A with a growing portfolio of domestically developed weapons, vehicles, marine engines and unmanned and underwater systems.
Team BharatShakti
