India has announced a record Rs 7.85 lakh crore defence budget for 2026-27, marking a sharp 15% rise from last year’s Rs 6.81 lakh crore. This makes India the world’s fourth-largest military spender, behind only the US, China, and Russia, amid rising border tensions and the success of Operation Sindoor.
The allocation includes Rs 2.19 lakh crore for capital expenditure, up 24% from prior levels, focusing on fighter jets, warships, submarines, drones, and smart weapons. About Rs 1.39 lakh crore targets domestic procurement to boost ‘Make in India’ self-reliance, while DRDO funding rises to Rs 29,100 crore for R&D innovation. Pensions and Agnipath scheme get hikes to Rs 15,173 crore, supporting troop welfare.
Post-Operation Sindoor—a key military success against threats from China and Pakistan—this budget strengthens readiness. Defence Minister Rajnath Singh called it a step to build a “robust” force under PM Modi’s vision. It equals about $85-95 billion USD, cementing India’s global military rank.
The spend, 13-15% of total Union Budget, spurs jobs in manufacturing and tech. It aligns with Northeast India’s growth, aiding local firms in Assam via defence corridors. Experts see it driving exports and tech like missiles.
FAQs [Frequently Asked Questions]
1. Why the budget hike now?
Post-Operation Sindoor success and threats from China-Pakistan prompted a 15% jump to Rs 7.85 lakh crore for modernisation and self-reliance.
2. What gets the most funds?
Rs 2.19 lakh crore for capital outlay buys jets, ships, drones; Rs 1.39 lakh crore for domestic arms production.
3. India’s global ranking?
Fourth-highest spender at ~$93 billion, after US ($900B+), China, Russia; up due to 15% growth.
4. Benefits for self-reliance?
75% capital acquisition from Indian firms; DRDO at Rs 29,100 crore boosts local tech, jobs.