The contract between France and India is welcomed by French officials as a diplomatic coup, but it also looms large as part of the arms race between India and some of its neighbors—namely Pakistan and China.

India is working to develop a second indigenous aircraft carrier, IAC-2, as it prepares to induct the first one in the next two years, according to a senior Indian navy official.

India has developed an advanced guided missile destroyer, which is planned to be inducted into its naval forces in the next two years.