$22 billion in military spending approved

Hello, this is Priyanka Salve, writing to you from Singapore.

Welcome to the latest edition of “Inside India“ — your one-stop destination for stories and developments from the world’s fastest-growing large economy.

India, the world’s fifth-largest military spender, shares a contentious relationship with two of its nuclear-armed neighbors — China and Pakistan. Last year, New Delhi carried out military strikes against alleged terrorist infrastructure in Pakistan, and last week an Indian official confirmed some border clashes with China.

As tensions at its borders simmer, India this week announced plans to spend billions of dollars on procuring modern warfare equipment. From whom will it get the goods?

Any thoughts on today’s newsletter? Share them with the team.

Last week, an Indian military official said that confrontations with Chinese soldiers were ongoing across several locations along the country’s north-eastern border.

Shatrujeet Singh Kapoor, the director general of a division of India’s central armed forces, the Indo-Tibetan Border Police, also called China the “biggest adversary” and urged for modernization of defense equipment. “It will be difficult to compete with China using traditional methods,” Kapoor said.

Following Kapoor’s comments, India approved spending 2.12 trillion rupees ($22 billion) to modernize its defense equipment on Monday. The country plans to spend on long-range kamikaze drones, surveillance and strike systems, counter-drone technologies, short-range air defense, artillery, helicopters and naval platforms.

Experts told CNBC that New Delhi increasingly views Beijing as a threat, especially given the Sino-Pakistan military ties, and the latest purchases were aimed at bridging the technological gap with China.

A spokesperson for India’s foreign ministry said on Friday that “the situation in the India-China border areas gets disturbed from time to time when Chinese forces diverge from established patrolling patterns.” Beijing responded, saying it “strictly abides by the relevant agreements and common understandings reached between the two countries.”

India’s military policies are largely driven by its long-standing conflict with Pakistan, and an “increasing perception of China as a threat,” Pieter Wezeman, senior researcher at the Stockholm International Peace Research Institute, told CNBC.

According to a SIPRI report earlier this year, 61% of Chinese arms exports were supplied to Pakistan between 2021 and 2025.

India’s latest…