The Ministry of Defence is reportedly planning to double its arms procurement and spend to over $20 billion (over Rs 120,000 crore) -- more than twice the amount spent in the past 10 years on an annual basis. News reports suggest that India's military spending is even set to overtake Britain’s present defence budget within five years.
On the table are major naval acquisition programmes, including buying six submarines for about $2.3 billion and $3 billion worth modernizations of India’s artillery corps. Companies are, therefore, eyeing huge opportunities in the defence sector, also on the back of the India-US nuclear deal. For instance, US aerospace major Boeing alone sees a $20-billion opportunity in India’s defence sector over the next decade. It is bidding for defence orders worth $15-$20 billion for F/A-18 Super Hornet combat jets, and P8I maritime surveillance aircraft, among others.
According to sources, India has an ageing fighter fleet, mostly a combination of Jaguars, Russian-made MiGs and French Mirage aircraft, and some are up for replacement. Some of the latest defence procurement programmes include:
1)
F/A-18 Super Hornet combat jets {Already won the bid?} 
The Boeing F/A-18E/F Super Hornet is a supersonic carrier-capable fighter/attack aircraft. The Super Hornet, which is a larger and more advanced variant of the F/A-18C/D Hornet, was first ordered by the US Navy in 1992. It entered service with the US Navy in 1999. An early version was marketed by McDonnell Douglas as Hornet 2000 in the 1980s.
The Super Hornet is about 20 per cent larger, 7000 lb (3000 kg) heavier empty, and 15,000 lb (6800 kg) heavier at maximum weight than the original Hornet. It carries 33 per cent more internal fuel, increasing mission range by 41 per cent and endurance by 50 per cent over the ‘Legacy’ Hornet.
2)
P8I maritime surveillance aircraftThe Boeing P8I maritime patrol aircraft the Indian Navy is on the verge of acquiring will give it a marked edge in the Indian Ocean region and one that is comparable to its US counterpart. The P8I, a customized version for the Indian Navy, is based on the hugely successful Boeing-737 commercial airliner. The Navy had in November 2006 expressed an interest in the aircraft as a replacement for its existing fleet of Il-38 aircraft that are nearing the end of their service life.
3)
Mig-29K (Fulcrum-D) fightersThe government is also likely to buy 30 more carrier borne Mig-29K (Fulcrum-D) fighters for the Indian Navy, according to news reports. Russians have demanded a price escalation of $2 billion, almost double the original contract cost of $2.5 billion for refurbishing the 45,000-tonne carrier, including carrying out its elaborate sea trials in Russian waters, prior to its delivery by 2012. Under the 2004 contract for the acquisition of Admiral Gorshkov aircraft carrier, India is to receive 12 single-seater MiG-29K and four two-seater MiG-29KUB in 2009, with an option of ordering additional 30 fighters by 2015.
4)
Spyder missileIndia has recently signed an agreement with Israel to acquire 18 Spyder surface to air missiles to protect high-value assets of the Indian Air Force. The plans to acquire the Spyder had been announced in 2006 but were on hold due to allegations of corruption over the Israeli Barak missiles deal for the Indian Navy signed four years ago. But as neither the IAF nor the Navy and Army have adequate missile defence protection, the government has been under pressure to do the needful for several years. Spyder is a static low level, quick reaction missile (LLQRM) to neutralize hostile targets up to 15 km away, and at heights between 20 to 9000 meters.
5)
Akash surface to air missileThe Indian Air Force is also buying the indigenous Akash surface to air missile which has a little longer effective range of 25 km as part of a layered approach to defend its assets. Both the Spyder and Akash are all weather missiles, 24 x 7 and 360 degrees with autonomous management and advanced Electronic Counter Counter Measures (ECCM) capability. It can be launched within five seconds, and once the commander has pressed the button, the process to seek and engage an aggressive aircraft or missile is automatic.
6)
Multi Role Combat AircraftThe latest military sales issue on the table involves India’s plans to purchase more than 100 multi-role combat aircraft for its air force. The US F-16 Fighting Falcon and F/A-18 Hornet are among the contenders in the $10 billion competition.
7)
Boeing’s Harpoon missilesThe United States recently announced the sale of two dozen Harpoon II anti-ship missiles to India. The deal is worth over $170 million, and would be the first sale of American missiles to India. The Pentagon has notified Congress of a possible sale to India of the Harpoon Block II missiles, which would arm squadrons of the maritime-role version of Jaguar warplanes of the Indian Air Force. The Pentagon’s Defence Security Cooperation Agency said India had sought 20 AGM-84L Harpoon missiles, which are fired from fixed-wing aircraft, and four ATM-84L Harpoon Block II Exercise missiles, containers, training devices, spare and repair parts.
Hercules C130J aircraftIndia has also signed its one of the biggest military deals yet with the United States to buy six Super Hercules C130J special role aircraft in a $ 1-billion-plus package deal. The C 130J model is the latest optimised version of the Hercules C 130, configured for landing and takeoff from a grassy, or dirt patch the size of a football field. It can climb and get out of a threat area faster after dropping or carrying troops or wounded personnel. Named after a powerful Greek figure, the 4-engine Hercules is one of the oldest transport aircraft in the world. Introduced in the 1950s, and used in 67 countries, it has been deployed for recovering space capsules and also been able to land in the Antarctica by wearing skis. The Super Hercules version is an entirely new aircraft with new capabilities in the 20-ton capacity category.
9) E
L/M-2083 Aerostat radarsIn order to dissuade future coastal security lapses, the Indian Navy is all set to acquire its first set of balloon-mounted air defence radars from Israel. India is expected to soon sign a contract with Israel for the acquisition of two EL/M-2083 Aerostat radars. The EL/M-2083 is an aerostat-mounted air search radar which can detect better than ground-based radars. It is an early warning and control phased array radar designed to detect hostile approaching aircraft from long ranges, especially when they approach at low altitudes.
10)
Fifth Generation Fighter AircraftThe Fifth Generation Fighter Aircraft (FGFA), being jointly developed by Russia and India, will fly by the end of 2009, with serial production starting by 2010. “By the end of this year, the plane will rise into the air and flight tests will begin,” Russian deputy prime minister Sergei Ivanov told journalists at the sidelines of a meeting in Russian Far East city of Komsomolsk-on-Amur Monday, May 11. He added that serial production will start in 2010, probably indicating that the development of the aircraft is being fast tracked. According to announced plans, the FGFA is to be inducted into the Russian Air Force by 2015 and into the Indian Air Force by 2017.
& lets hope there is full stop of speculations among Brfites too asap ! 
]