Year-Ender 2025: India’s top defence deals with other countries
India sealed defence deals exceeding Rs 1,63,000 crore in 2025, moving from procurement to strategic partnerships. Major agreements with US, France, Israel, Russia emphasise technology transfer and joint production.
US-India 10-Year Defence Framework - Strategic Partnership Redefined
India and the United States signed a landmark 10-year defence cooperation framework in October 2025, shifting their relationship from traditional buyer-seller dynamics to genuine strategic partnership. The agreement focuses on co-development of advanced defence systems, supply chain resilience, and technology transfers. It institutionalises long-term collaboration in defence manufacturing and joint military operations across the Indo-Pacific region.
India-France Hammer Weapons Deal - Joint Production Revolution
India and France formalised an agreement to jointly manufacture the HAMMER air-to-ground precision weapon system in India. The deal follows technology transfer arrangements allowing localised production under the Make in India initiative. Both nations also advanced plans for co-development of next-generation fighter jet engines, strengthening bilateral defence industrial cooperation beyond traditional procurement models.
India-Israel Defence Partnership - Technology and AI Integration
India and Israel signed a new Memorandum of Understanding in November 2025 to expand defence cooperation through joint production of military equipment and collaboration in artificial intelligence and cybersecurity. The agreement emphasises shared security interests against terrorism whilst enabling Indian access to Israeli advanced sensors, electronic warfare systems, and air defence technologies developed through operational combat experience.
India-Russia Defence Cooperation - Expanding Joint Development
India and Russia reaffirmed their strategic partnership at the 22nd IRIGC-M&MTC meeting, emphasising joint research and development programmes. Russia remains India's largest defence supplier, providing over 60 per cent of imported military equipment. The partnership now focuses on co-production, licensed manufacturing, technology transfers, and modernisation of legacy platforms using advanced materials and AI-enabled systems.
Defence Acquisition Council Approvals - Indigenous Manufacturing Surge
India's Defence Acquisition Council approved over Rs 1,05,000 crore in defence procurement in July 2025, with additional Rs 79,000 crore clearance in October under the Buy (Indian-IDDM) category. Approvals covered armoured recovery vehicles, electronic warfare systems, surface-to-air missiles, and naval platforms. The approvals align with Atmanirbhar Bharat, prioritising indigenous design, development, and manufacturing over foreign procurement.
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