In the next 10 years, India plans to spend US$35 billion on naval equipment. One Indian navy official defined India's economic and strategic interests as stretching from the edge of the Persian Gulf to the Indian Ocean. With the Chinese military modernizing its missile and sea-based capabilities, India is building its own strategic stocks rapidly. "India's defense spending is pegged at less than 2 percent of the country's gross domestic product. This is grossly inadequate for the huge threats and challenges that confront India. The People's Liberation Army of China is modernizing rapidly and will soon become a first-rate 21st century force. This situation is not conducive to strategic stability," said Gurmeet Kanwal, retired Army brigadier and director of the Centre for Land Warfare Studies.

In recent years, India's military purchases from Russia have focused on fighter aircraft and helicopters. Moscow has always been the number one supplier of military aircraft to New Delhi. Indian Air Force Chief P. V. Naik has confirmed that India has bought 80 Mi-17 helicopters, to be delivered later this year, and that the purchase of another 59 is under way. These 139 helicopters will cost US$700 million.

The Indian Defense Ministry has confirmed an additional order of 42 Su-30MKI fighter jets, bringing India's fleet of Su-30 aircraft up to 272, and costing US$13.6 billion. The Indian Air Force plans to upgrade its Mig-29 fighter group and IL-76 transport planes. Starting in 2012, India plans to spend US$2.5 billion upgrading its Su-30 fleet. On October 6, India announced plans to buy 300 fifth-generation stealth fighters jointly developed with Russia, in a contract worth around US$30 billion.

In response to what it sees as a Chinese missile threat, India is trying to buy a missile defense system. Defense News disclosed on September 6 that according to US's China Military Report, the PLA plans to station "Dongfeng-21" medium-range ballistic missiles on the Tibetan Plateau, prompting India submitted its biggest ever order of US$3 billion to the international military market. America's "Patriot -3", Israel's "Iron Dome" and "David's sling" are the preferred options for the India Defense Ministry.

The current geopolitical reality in Asia is that: under the overarching umbrella of American power, China, Japan and India are growing more rapidly than ever before. At present, Sino-Japanese and Sino-US relations remain tense, while the game between India and China is in full swing.