The Indian Air Force (IAF) will get its own dedicated satellite, enabling faster decision-making and improved connectivity among aircraft. The Ministry of Defence on Thursday signed a Rs 2,563 crore contract to develop the satellite, named GSAT-7C.So far, the IAF has been sharing satellite transponder capacity on other satellites with the Indian Navy and the Indian Army.The Ministry of Defence said the contract for GSAT-7C was signed with NewSpace India Limited (NSIL), the commercial arm of the Bengaluru-headquartered Indian Space Research Organisation (ISRO).“This indigenously designed, developed and manufactured satellite will enhance the secure, resilient and seamless communication capabilities of the assets of the IAF, thereby strengthening operational effectiveness,” the Ministry of Defence said.The Ministry said the contract marks a step towards advancing domestic defence manufacturing capabilities and promoting self-reliance in critical technologies, in line with the government’s ‘Aatmanirbhar Bharat’ and ‘Make in India’ initiatives.The contract was signed in New Delhi on October 15, 2026, in the presence of A. Anbarasu, Additional Secretary and Director General (Acquisition) in the Department of Defence.What does GSAT-7C satellite mean for IAF?India’s military use of space began in the 1990s, when satellite imagery from international sources was used for defence purposes. In 2013, ISRO launched GSAT-7, also known as Rukmini, to provide communication services to the Indian Navy. Naval ships and aircraft are connected through the satellite.The Defence Acquisition Council (DAC), the Defence Ministry’s apex procurement decision-making body, granted in-principle approval in 2021 for the procurement of GSAT-7C and its associated ground hubs.Until now, the IAF has relied on shared satellite transponder capacity for its communication requirements. However, with modern warfare demanding faster and more reliable connectivity, a dedicated satellite is expected to give the IAF an operational edge, sources said.The GSAT-7C is expected to improve real-time connectivity and enable communication over greater distances. It will facilitate the transmission of real-time data and video between ground stations and IAF aircraft in flight. This will allow commanders in war rooms to access the same live imagery and operational information, with seamless connectivity across the airspace.The data will be transmitted through secure IAF communication nodes using high-level encryption to prevent unauthorised interception.In December 2018, ISRO launched the GSAT-7A satellite, equipped with Ku-band transponders, to interlink IAF fighter aircraft, airborne early warning and control (AEW&C) platforms, unmanned aerial vehicles, ground radar stations and major airbases. The GSAT-7A is shared by the IAF and the Indian Army.Last year, the Indian Navy received a replacement for its Rukmini satellite. On November 2, 2025, ISRO launched CMS-03, known in military circles as GSAT-7R.The multi-band communication satellite is designed to provide services across a broad oceanic region, including the Indian landmass. CMS-03 is a strategic satellite intended to strengthen the Indian Navy’s operational capabilities.