Indian Economy News

Aatmanirbhar Bharat: MoD inks US$ 5.67 billion contracts with GRSE and GSL for 8 Next Generation Corvettes for Indian Navy

The Ministry of Defence (MoD) has signed contracts worth Rs. 53,866.50 crore (US$ 5.67 billion) with Garden Reach Shipbuilders & Engineers Limited (GRSE) and Goa Shipyard Limited (GSL) for the acquisition of 8 Next Generation Corvettes (NGCs) for the Indian Navy. Signed on November 2, 2026, in the presence of Defence Secretary Mr. Rajesh Kumar Singh in New Delhi, the contracts assign the construction of five corvettes to GRSE and the remaining three to GSL. The project marks a milestone in India's indigenous warship design and construction capabilities, as the vessels will be indigenously designed by the Indian Navy and built by Defence Public Sector Undertakings (DPSUs) selected through a competitive process. The corvettes will feature advanced missiles, weapons and sensor suites, enabling operations across air, surface and sub-surface domains.

The induction of these vessels is expected to strengthen the Indian Navy's capabilities in anti-surface and anti-submarine warfare, coastal defence, littoral combat, maritime surveillance and the protection of maritime trade routes. The project will also provide a major boost to India's domestic shipbuilding ecosystem by encouraging collaboration among DPSUs, private shipyards and Indian industrial partners, including micro, small and medium enterprises (MSMEs). Construction is expected to generate approximately 72 lakh person-days of employment in shipyards and 460 lakh person-days in ancillary industries and MSMEs over the next 10 years. By promoting the use of Made-in-India materials, equipment, indigenous technologies and Indian expertise, the project is expected to advance self-reliance in defence manufacturing and support the Government's Make in India initiative.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.