In a significant boost to India's military modernization and self-reliance drive, the Defence Ministry on Tuesday, December 31, 2025, signed two major capital acquisition contracts cumulatively valued at Rs 4,666 crore. The deals, finalized ahead of the upcoming Union Budget, are for procuring state-of-the-art Close Quarter Battle (CQB) Carbines and heavyweight torpedoes.
Massive Firepower Upgrade for Soldiers
The larger of the two contracts, worth Rs 2,770 crore, is for the acquisition of over 4.25 lakh CQB Carbines along with essential accessories. This equipment is destined for the infantry units of the Indian Army and the Indian Navy. The contract has been awarded to a consortium of Indian private firms, Bharat Forge Ltd and PLR Systems Pvt Ltd.
According to an official statement, this long-pending deal will equip frontline soldiers with "world-class lethality," effectively replacing older, legacy weapon systems. The ministry emphasized that the new carbines represent "cutting-edge indigenous technology" aligned with the national 'Atmanirbhar Bharat' (Self-Reliant India) vision. The compact design and high rate of fire of the CQB Carbine are expected to provide a critical advantage in close-quarters combat scenarios, enabling rapid and decisive action in confined spaces.
Enhancing Naval Undersea Dominance
The second contract, valued at approximately Rs 1,896 crore, is for the procurement and integration of 48 heavyweight torpedoes along with associated support equipment. These advanced torpedoes are intended for the Indian Navy's Kalvari-class (Project-75) submarines. The contract was signed with WASS Submarine Systems SRL of Italy.
This acquisition is set to significantly enhance the combat capability and striking power of the Navy's fleet of six Kalvari-class submarines. The delivery of these sophisticated underwater weapons is scheduled to commence from April 2028 and is expected to be completed by early 2030.
Broader Impact on Economy and Indigenisation
The Defence Ministry highlighted that the carbine contract exemplifies the growing synergy between the government and the private sector, providing a substantial impetus to the Make-in-India initiative in the defence domain. The project is projected to have wide-ranging positive effects, including:
- Boosting the overall domestic economy.
- Creating increased employment opportunities.
- Empowering indigenous defence industries, particularly Indian Micro, Small and Medium Enterprises (MSMEs), through component manufacturing and raw material supply chains.
This procurement is part of a larger wave of defence modernisation. The Ministry noted that in the current financial year 2025-26, it has already inked capital contracts totalling a massive Rs 1,82,492 crore, underscoring the government's sustained focus on strengthening national security with modern, capable hardware.
