Is India going aggressive on defence purchases and what does that mean for defence companies like Walchandnagar, Bharat Dynamics and BEL?
Answer
Answer
India expeditiously approved the purchase of 33 Russian fighter jets and also ordered urgent upgrades to 59 war planes at a cost of Rs.18,148 crore. This was done in the midst of rising tensions with China after clashes broke out in Galwan following Chinese provocation. The order includes 21 MIG-29 aircraft and 12 Sukhoi Su-30MKI made under license by HAL.
Russia will also upgrade 59 MIG-29 jets. The deal will also have substantial order hive offs for Indian manufacturers. The approval followed a direct one-on-one chat between Putin and Modi. Russia has showed its willingness to support India with defence purchases in the midst of tensions between India and China. This also reflects the global mood.
The orders including the long-range land attack missile systems with a firing range of 1000 km are expected to come as a shot in the arm for the Indian army as well as the Indian Air Force which has seen its squadron strength down to 30. The big takeaway for local companies like Bharat Dynamics, Walchandnagar and BEL is that out of the Rs.38,900 crore worth of contracts, nearly Rs.31,130 crore will be sourced locally.