They also just lost one of their submarines
http://www.bbc.co.uk/news/world-asia-india-23691561.
The Indian's have been spending a huge amount of money on expanding their navy. The Vikrant is the first of two new carriers they are building, the second one (the Vishal) may displace 65,000 tons which is about the same size as the two new British carriers under construction and far bigger than China's Liaoning. They have bought the former Russian Admiral Gorshkov (the Vikramaditya) and expect to commission it by the end of this year or next, with the Mig-29K on board all carriers.
Their also expanding their submarine fleet. They are leasing two Russian Akula II Class SSN and will probably buy them after the ten years lease is up, and are building their own nuclear ballistic missile submarines (Arihant Class). They also have 10 Russian Kilo Class and 4 German Type-1500 Class diesel electric submarines, and outfitted their submarines and escorts with advanced Russian missiles.
How India with a defence budget smaller than Saudi Arabia can afford all of this while maintaining a respectable nuclear weapons capability, an army of over 1 million regular troops and an air force of 1,400 aircraft is another question?