Analysts, however, say the hike is insufficient, as it will merely compensate for inflation and pay for past commitments, leaving fewer funds to buy new weapons and equipment.
The Indian navy has issued a global request for information to procure 57 multirole fighters for its aircraft carriers at an estimated price tag of $15 billion.
The Indian Army has a requirement of more than 1,500 towed guns, and the production order could be worth more than $4.5 billion, a potential boost for domestic private defense businesses.
Russia has agreed to allow its defense companies to forge direct ties with Indian defense companies to supply, service and jointly manufacture spares for use by Indian defense forces.
India is likely to revisit the Cold Start doctrine, which foresees short, intense and quick wars with neighboring Pakistan and China against the backdrop of terrorism and nuclear threats.
The newly ordered Russian T-90MS tanks for the Indian Army will come without advanced protection systems, prompting India to explore acquisition of these systems from domestic sources.
India's equivalent of the United States' Tomahawk Land Attack Missile — the Nirbhay cruise missile — has received an extension of 16 months for further development, despite failing its fourth test.
The program to build 12 high-tech new generation mine counter-measure vessels has run into rough weather, as Kangnam Corporation of South Korea virtually refuses to provide a performance guarantee for supervision of construction of the vessels by state-owned Goa Shipyard Ltd.