India Greenlights 40 Billion Upgrade to Its Air Defense
Watch on YouTube ↗  |  February 13, 2026 at 06:46 UTC  |  3:02  |  Bloomberg Markets
Speakers
Swati Gupta — South Asia Government Reporter, Bloomberg

Summary

  • India has approved a massive $40 billion defense spending package to upgrade its military capabilities, specifically following conflicts with Pakistan.
  • The deal includes the purchase of six US maritime surveillance aircraft and 114 fighter jets from France, signaling a strategic pivot away from Russian defense equipment.
  • A key component of the deal is the "Make in India" initiative, requiring technology transfers and domestic manufacturing of the fighter jets, which aims to boost India's local industrial base.
Trade Ideas
Ticker Direction Speaker Thesis Time
ITA /GERMANY / EUROPEAN EQUITIES /DEFENSE SECTOR
LONG Swati Gupta
South Asia Government Reporter, Bloomberg 		India is committing $40 billion to defense, explicitly buying "six US maritime surveillance aircraft" and "114 fighter jets from France." This spending marks a structural shift where India is "building some distance" from Russia (its traditional supplier) and redirecting capital to US and European defense contractors. This creates a direct revenue tailwind for Western defense firms (likely Boeing for US surveillance and Dassault for French jets) and the broader sector. Long US and European Defense sectors as they capture market share from Russian competitors in one of the world's largest arms markets. Geopolitical reversals or bureaucratic delays in finalizing procurement contracts. —
INDIA /EMERGING MARKETS
LONG Swati Gupta
South Asia Government Reporter, Bloomberg 		A "large percentage of the fighter jets are getting manufactured in India," which requires "approvals for technology transfer" and government collaboration. This deal is not just an import expense but a capital investment in India's domestic economy. The requirement to manufacture locally ("Make in India") will drive industrial activity, upgrade local technology standards, and strengthen India's manufacturing sector. Long India/Emerging Markets as the economy benefits from increased foreign direct investment (FDI) and industrial technology transfers. Execution risk regarding the absorption of complex military technology and manufacturing quality control. 0:00