As India arises as a formidable player in defense

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India is already the main importer of weapons in the world, but this does not interfere with the strengthening of its defense capabilities. The new Delhi plans to spend about $ 200 billion for The following 10 years About the transformation and modernization of their military.

This raises an important question: why is India hurrying to double weapons and fighters? You might think it is Pakistan, the country’s neighbor and the longtime rival. However, foreign policy analysts say the trigger is in the east of India – in particular, China.

Increased geopolitical tensions, contractions at the turn of India and China and the increased presence of Beijing in the Indian Ocean contributed to India’s desire to improve their defense. India and China are also recorded in technological rivalry, which, according to experts, contributed to the increasing tension between the two Asian countries.

“Chinese expansionist policy and military extensions along the border remain a serious problem,” said John Hopkins, CNBC, Professor of International Economy of the University of John Hopkins.

Increased presence in Beijing around the water subcontinent causes the greatest concern.

“China emphasized that the Indian Ocean is not an ocean of India,” said the Pramit Pal Chaudhuri, the head of South Asia’s practice, said CNBC by phone.

Chadhari added that, according to Indian Navy intelligence, China is building aircraft carriers, two of which will be deployed in the Indian Ocean. Beijing also has a complete military -marital base in Djibouti, the country in the east of the African continent, where he conducts marine training.

Updated US and India’s relationship

Against this background, Indian Prime Minister Narendra Modi met US President Donald Trump at the White House Two weeks ago Where both leaders have confirmed efforts to strengthen US and India’s ties.

Modi also signed India before Buy more defense equipmentIncluding additional heavy armored vehicles, drones and fighters.

“It is unusual that, in less than a month in the new Trump administration, the US and India may report such a wide range of action in the defense sector,” said former US Ambassador to India Kenneth I.

The purchase of US defense equipment is also one way that New Delhi can reduce the increasing US trading deficit and India, which is seen as the key to maintaining good relationships with Trump.

Boiling According to the scientific and research group “Kaien Washington”, which is engaged in the largest part of foreign military sales to India since 2017. Trump too proposed Access to India to the latest supersonic Martin Martin Martin Martin Martin Martin.

India is not technically entitled to the F-35, given that the country is not the US military ally and is currently buyer of Russian equipment.

If Trump really makes an exception, analysts say it will be a great victory for India, though others are tough to see what’s happening. According to Reuters, Foreign Secretary of India Vicer Missry told reporters earlier this month The fact that the US proposal to sell the F-35 was at the “stage of the proposal”, adding that the acquisition process did not begin.

“We believe that there will be some problems that complete the sale, given the use of the Russian military system,” said Roman Schweizer, aerospace and defense policy analyst in the Cowen Washington Research Group.

Playing a contract with China

Regardless of the results of the F-35 transaction, India’s defense is planned to remain reliable. Overall, Jpmorgan India’s capital expenses are estimated to grow 8% each year from 2024 to 2026.

“Growth in the defense of India is conditioned by its own geopolitical and safe opinions,” – Atlotel Tivars, Infrastructure, Industrial and Utilities JPMorgan, wrote to customers in the note on Monday.

However, experts claim that India still has a long way to go into a contract with its main competitor China. According to the official number, China’s military and defensive budget are currently three times higher than India and grow at rapid speed, Eurosia reports.

The US potential restriction can also complicate India’s plans to halve US defense equipment.

“Limited investments in production … mean that the USA defense is an industrial base confronted with the restrictions of potential and expanded delivery. This happens at a time when India must compete with European demand for US weapons, as well as America’s own needs,” said CNBC Tara Hariharan.

Go to self -sufficiency

Hariharan added that over time, India will increase the pressure to become more self -sufficient, as it is already facing the internal tension between the desire to acquire weapons in the US and the “make in India”, which will prefer domestic production. An industrial aeronauticsBharat Electronics and Zen Technologies appeared three largest players in the growing defense sector of India, JPMorgan reports.

India is increasingly aware that it is better to buy in foreign countries and what equipment should be made at home.

In 2023, The total electric signed a partnership in joint production Reactive engines with Indian Aeronautics. The transaction that received approval in the US Congress provided for technology transfer to India.

Sources close to the Indian government shared that technology transfer was the topic between Modi and Trump during the recent Indian leader trip.

“If India can find other ways of obtaining technology and joint production of equipment inside the country … Delivery times will accelerate,” said a source that asked him not to call it because they had no right to speak on this.

Krishna at the University of John Hopkins added that over time India’s desire – to move from dependence on foreign weapons and invest large funds in the possibility of indigenous residents.

India’s ambitions expand its defense capabilities and protect its crowded nation from new threats that can make it more attractive partners American and Russian companies are a dance between competing world powers that India will have to balance.

The European Union wants India to reduce its tariffs. As part of the discussion on India-EU Free Trade Agreement, The block wants Delhi to cut their “very high tariffs” On goods such as guilt, perfume and cars, said a senior EU official. However, the EU usually stated that tariffs should not be “one for one”, as different countries feel the bay at their level of development and face unique problems in their economy. Ursula von der Leyen, President of the EU, will be in India from February 27 to February 28 and will meet with the prime minister of Narendra Modi.

Negotiations on the Free Trade Agreement of India and the UK are well advanced. There are only a Few wonderful issues left before the FTA could be finalizedUK Business and Trading Secretary Jonathan Reynolds told exclusively CNBC-TV18. However, Reynolds stopped to offer a specific temporary scale for this transaction, which, he said, would be a comprehensive agreement that covers not only goods and services, but also lower business barriers in both countries.

Tesla’s courtship may not melt. Tesla is reportedly engaged in scouts in India to start selling vehicles in the country after a meeting between Indian Prime Minister Narendra Modi and Tesla CEO Elon Musk earlier in February. However in the company EV has Still announcing any plans to create factories in India Despite the impetus of Modi, for example, its introduction of a new EV tariff policy.

Deepseek causes an outflow from Indian shares. The economic model of Chinese artificial intelligence raised moods on the Chinese market, and in January the offshore action increased by 26%in January. Money must come from somewhere – most of the time, this Distracted from its competitor developing in India’s markets. The slowdown economy of the subcantinent also contributes to the sharp correction of its stock market in recent months.

This week, Indian actions continued to remain in the negative territory. As of 12:30 local time on February 27, landmark Nifty 50 The index decreased by 0.09,%, and the wide SENSEX index was equal.

A 10-year government bond with a 10-year Indian bond has increased slightly to 6.701%.

On CNBC television this week Aditya Suresh, Head of the India Equity Department in Macquarie Capital, said it said Indian funds trade more defensivelyFocusing on the information technology sector and choose pharmaceutical companies and funds that have an “assessment” support. On the other hand, there are risks in the discrete consumer space and the industrial segment from the increased revenue expectations.

Meanwhile, after the exit Deepseek, Focus in the artificial intelligence space switched to software offersAccording to Kunala, the director of BNP Paribas and the head of India’s shares. “Indian companies can play a very important role there,” said the thief, especially because the Indian Rupee depreciates, which will make it cheaper for foreign buyers.

India’s economic growth will be the focus of the week. Meanwhile, the inflation report from the US and the European Central Bank meeting provides updates on raising prices and interest rates in developed economies.

February 28: Indian gross domestic product for a quarter of the end of DecemberUS Personal Consumption Index for January

March 3.

March 4: Japan’s work data for January, consumer confidence for February

March 5: India HSBC Composite PMI Final for February, US Services ISM PMI for February

March 6: The decision on the Euro’s interest rate