India clears transport aircraft purchases worth $25 billion

The ‌decision comes on the back of another major approval last month worth $40 billion to purchase more French Rafale fighter ​jets for the air force and Boeing P-8I reconnaissance aircraft for the navy.

Friday's approvals also covered purchases of systems , increasing the life of the Sukhoi-30 fighter jets operated by the air force, and hovercraft ‌for the coastguard, a statement ⁠from the defence ministry said, reported the Reuter.

Separately, the ministry also signed a 4.45 billion rupees ($47 million) contract on Friday with Russia's JSC Rosoboronexport to acquire Tunguska ⁠air defence missile systems.

In all, India has approved 55 proposals worth 6.73 trillion rupees ($71 billion) and signed contracts for another 503 proposals amounting to 2.28 trillion rupees in ​the fiscal ​year ending March 31, the statement said, adding ​that both were the highest in ‌a fiscal year.

India is the world’s fifth-largest equipment spender and the second-largest importer, according to latest data from the Stockholm International Peace Research Institute.

It has for decades been modernising its mostly Soviet-era equipment and increasingly looking to new sources including France, Israel, the United States and Germany. In recent years, it has pushed ‌to manufacture everything at home, either on its ​own or in collaboration with foreign ​partners.

India signed a deal worth 623.70 billion rupees ($7.03 billion) on Thursday to buy indigenous fighter aircraft from state maker Hindustan Aeronautics Ltd (HAL) in the effort to modernise its armed forces.

"The supply of these aircraft by HAL would enhance operational capability of the Indian Air Force to continue their unhindered operations and strengthen defence preparedness," Defence Minister Rajnath Singh said in a post on X.

After that India's fleet of mainly ex-Soviet fighter aircraft will shrink to 29 from an approved strength of 42, a matter of frustration for officials in May.

Thursday's deal is a follow-on order for the advanced Mk-1A version of the Tejas group of fighters, powered by General Electric engines.

The government signed a deal with HAL in 2021 for 83 such aircraft but delivery of that order has yet to begin, as the warplane maker blamed GE for being slow in providing the engines.

GE has said the delay followed challenges in restarting the production line and re-engaging global supply chains for the engine after the COVID-19 pandemic.

It delivered the first engine for the Mk-1A fighter in March this year and Indian officials have said they expect production and deliveries to stabilise in the current fiscal year.