Analysis & Reports

India is negotiating with Russia for a customized version of the Su-57 fighter aircraft, known as the Su-57E, which will incorporate Indian systems and industry. Russian President Vladimir Putin promoted the aircraft during his visit to India in December 2025. The negotiations include a potential license-production deal, with discussions indicating that the Indian variant may be more expensive than the original.

Pakistan is expanding its defense industry, notably with the JF-17 fighter jet, and is seeking to enhance defense partnerships with the U.S. amid growing ties with China. The U.S. is encouraged to engage with Pakistan to counterbalance China's influence and to establish joint production agreements for military equipment. This development raises concerns in India regarding regional security dynamics.

India plans to invest $85 billion in defense for the 2026/2027 fiscal year, marking a 15% increase from the previous year. This budget will support the procurement of submarines, fighter jets, and drones, following a recent conflict with Pakistan. The Indian government aims to enhance its military capabilities and infrastructure significantly.

India announced a defense budget of 7.85 trillion rupees for FY 2026-2027, marking a 15% increase aimed at enhancing military preparedness against threats from Pakistan and China. The budget includes a 28% rise in defense capital expenditure, reflecting a commitment to procure advanced weapon systems and bolster domestic defense manufacturing. Additionally, the government plans to develop a rare earth corridor to reduce reliance on Chinese imports.

EU leaders engaged in talks in New Delhi this week to strengthen defense and security collaboration with India. The discussions aimed to enhance the working partnership between the European Union and India in the defense sector.

In 2026, tensions are expected to escalate in multiple regions, including Greenland, Ukraine, Taiwan, Iran, and India-Pakistan. U.S. military readiness is under scrutiny as President Trump has threatened action over Greenland, while Ukraine faces ongoing conflict with Russia. China may see an opportunity to act against Taiwan, and Iran's internal crisis could provoke external military responses. The rivalry between India and Pakistan remains dangerous, with both nations emboldened after recent clashes.

U.S. President Trump has threatened military action regarding Greenland, while Russia continues to gain ground in Ukraine. China views Taiwan as a potential target for military action, and Iran remains vulnerable yet capable of retaliation. Tensions between India and Pakistan persist following recent military skirmishes, indicating a precarious geopolitical landscape leading into 2026.

An $8 billion submarine manufacturing agreement is expected to be signed during the visit of a foreign official to India. This agreement involves the Indian Navy and is a key development in military cooperation between the two nations.

Pakistan and Saudi Arabia are engaged in discussions regarding the exchange of military aircraft for financial loans. This negotiation highlights the ongoing political-military relationship between the two nations.

Pakistan is seeking to sell JF-17 Thunder fighter jets to Bangladesh, indicating a potential strengthening of military ties between the two nations. The JF-17 is a significant aircraft for the Pakistan Air Force, and this sale reflects Pakistan's efforts to enhance its defense relationships in the region.

India has approved a substantial defense procurement plan worth $8.8 billion to enhance its military capabilities.

The U.S. Coast Guard has been actively patrolling the Caribbean and eastern Pacific to intercept drug smuggling boats, while the Department of Defense has escalated its approach by conducting airstrikes against these boats. This shift raises legal questions and threatens the longstanding cooperative framework of counternarcotics operations.