India has signed contracts worth $2.3 billion for the manufacturing of next-generation missile and offshore patrol vessels with the domestic shipyards, a statement by the Ministry of Defense said on Thursday.
The contracts, signed under Prime Minister Narendra Modi’s ‘Make in India’ initiative, would witness the Indian Navy acquiring eleven offshore patrol vessels and six missile vessels.
The statement noted that seven of the 11 offshore patrol vessels would be designed, developed and manufactured by state-backed Goa Shipyard Ltd (GSL). Four of these ships will be built at another state-backed enterprise, Garden Reach Shipbuilders and Engineers (GRSE).
The combined cost of these contracts is estimated to be $1.18 billion, as per the statement.
The delivery of these vessels would begin in September 2026.
The defense ministry noted that these ships would help the Navy meet its “combat capability” and “operational requirements”, including in carrying out anti-piracy, counter-infiltration, anti-trafficking and search and rescue operations, among other things.
All You Need to Know About Next-Gen Missile Vessels
The contract for developing the next-generation missile vessels has been signed with state-backed Cochin Shipyard Limited (CSL) at an approximate cost of $1.2 billion. The Navy would start getting these vessels in March 2027.
The statement highlighted that these ships would bolster Navy’s “offensive capabilities” against enemy warships, as well as land-based targets.
These vessels would be capable of carrying out maritime strike operations and anti-surface warfare operations, it said. The ministry reckoned that the missile vessels would be “potent instrument” of sea denial for enemy ships at the time of crisis, especially at choke points such as the Strait of Malacca.
‘Make in India’ in Defense Sector
Since coming to power in 2014, Prime Minister Narendra Modi’s government has given a fillip to the policy of manufacturing defense equipment within India to shed the country’s reliance on foreign equipment.
Between August 2020 and October 2022, the Ministry of Defense has published four “Positive Indigenisation Lists’ to boost the domestic defense industry. Among them, the lists have mandated that a total of 421 defense equipment should be procured from Indian companies.
The government has also mandated the procurement of over 3,000 components and sub-systems through domestic companies, as per official statements.
The Make in India in Defense sector is also aimed at making New Delhi a major exporter of defense equipment.
Over the years, India has consistently ranked as the biggest importer of defense equipment globally, as per the Swedish think tank Stockholm International Peace Research Institute (SIPRI).
The country shares long borders with China and Pakistan and has long-standing border disputes with both the neighbours. Of late, New Delhi has sought to modernize its Navy into a blue-water fleet in order to become a "net security provider" in the Indian Ocean Region (IOR).
The latest SIPRI report released this year claimed that even though New Delhi still remained the world’s biggest global weapons’ importer, its imports have declined by around 11 per cent in the 2018-22 period as compared to 2013-17.