India has taken significant steps to bolster its defense capabilities by signing contracts worth over $7.55 billion with Hindustan Aeronautics Limited (HAL) and Metrea Management. These agreements mark pivotal advancements in India’s efforts to equip its armed forces with cutting-edge technology and enhance operational readiness.
The Ministry of Defence finalized two contracts with HAL for the supply of 156 indigenously designed Light Combat Helicopters (LCH), Prachand, along with training programs and related equipment. Valued at $7.55 billion excluding taxes, these helicopters are set to transform the operational effectiveness of the Indian Air Force (IAF) and Indian Army. Of the total, 66 LCHs will be allocated to the IAF and 90 to the Army, addressing critical needs for high-altitude combat capabilities.
The supply of these advanced helicopters will commence in three years and continue over a five-year period. With operational capabilities at altitudes exceeding 16,400 feet, the LCH marks a milestone in India’s indigenous aerospace development. The procurement program highlights the government’s commitment to self-reliance, with over 65% of components sourced domestically. The production will involve over 250 Indian companies, most of them small and medium enterprises, generating more than 8,500 jobs both directly and indirectly.
In another groundbreaking agreement, the Ministry of Defence signed a deal with Metrea Management for the wet leasing of a Flight Refueling Aircraft (FRA) to support air-to-air refueling training for pilots from the IAF and Indian Navy. The KC-135 aircraft, scheduled to be operational within six months, represents the first wet-leased FRA in Indian military history. This strategic addition will play a crucial role in extending operational range and enhancing aerial capabilities for India’s armed forces.
These contracts are part of a record-breaking year for India’s defense sector. The Ministry of Defence has finalized 193 contracts with a combined value exceeding $25 billion during fiscal year 2024–25. Notably, 92% of these agreements were awarded to domestic industries, reinforcing the country’s focus on building a self-reliant defense manufacturing ecosystem. The cumulative value of contracts awarded to Indian firms stands at over $20.5 billion, underscoring the government’s determination to support local enterprises and advance national security.
The acquisitions align with India’s broader strategic vision of modernizing its armed forces and fostering domestic innovation. The Light Combat Helicopters and the leased refueling aircraft are expected to provide significant enhancements in operational readiness and global competitiveness, ensuring that India’s military remains equipped to address evolving challenges.
With these landmark agreements, India reaffirms its commitment to becoming a global leader in defense capabilities, while driving growth in its domestic aerospace and defense manufacturing industries. As production ramps up and implementation begins, these initiatives are set to redefine the nation’s defense preparedness and strengthen its position on the global stage.
