Finance Minister Nirmala Sitharaman has presented the budget.
In view of the ongoing tension with Pakistan after Operation Sindoor and the increasing influence of China, Finance Minister Sitharaman has allocated a record budget of more than Rs 1 lakh crore to the defense budget for the financial year 2026-27. Defense experts had already expressed expectations of such a budget. Let us tell you that in the Union Budget 2026-27, giving top priority to the security of the country, the Central Government has allocated a budget of ₹ 7.85 lakh crore to the Defense Ministry. This amount is much more than ₹6.81 lakh crore for the previous financial year 2025-26 and is being considered an important step in view of India’s growing security challenges.
this increase National Security, Military Modernization And it has been done to strengthen the goal of self-reliant India. Tensions with neighboring countries, border situations and recent military operations like Operation Sindoor have further highlighted the need for strong and modern armed forces. In this budget, special attention has been given to capital expenditure i.e. purchasing new weapons, equipment and platforms. The government wants to invest more in drones, fighter jets, modern artillery, naval ships and development of infrastructure in border areas. Also, the policy of sourcing more than 75% of goods from Indian companies in defense procurement is being carried forward, which will strengthen the domestic defense industry and reduce dependence on imports.
No compromise on facilities and welfare of soldiers
A large part of the defense budget goes on military pensions, salaries of soldiers and operational expenses. The government says that there will be no compromise on the facilities and welfare of the soldiers. The government intends to take defense spending to around 2.5% of GDP in the coming years. At present this figure is around 1.9%. Defense sources believe that this budget will help in increasing India’s military strength and being prepared for future challenges. However, the picture of final expenditure and actual allocation to different services (Army, Navy and Air) will become clearer with the revised estimates. Defense Budget 2026-27 indicates that the government is serious about the country’s security, self-reliant defense production and military preparedness.
Defense budget increased by 14 to 15 percent
This time the government has shown stronger preparations for the defense sector than ever before. The total defense budget has been increased to about ₹7.8 lakh crore, which represents a significant increase of about 1415 percent compared to the previous year. It is clear from this that national security has now become not just a priority but the top agenda. A major increase has been made in the capital budget, paying special attention to the modernization of the army. It has been increased from approximately ₹1.80 lakh crore to ₹2.19 lakh crore. This amount will be used to purchase modern weapons, state-of-the-art equipment, new technologies and to meet future war needs.
Even drone technology will benefit from fighter jets
A major objective of the budget is to strengthen self-reliant India. The government is focusing on promoting indigenous defense production, providing opportunities to domestic companies and taking defense exports to new heights. Defense production has already reached record levels and this budget is expected to give it further momentum. This increase has been made at a time when instability is increasing at the global level. Russia-Ukraine war, Middle East tensions, China’s aggressive strategy and border challenges with Pakistan have made security concerns serious. In such a situation, it has become very important for India to invest in drone technology, missile systems, modern fighter jets and cyber security.
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Emphasis on strengthening maritime security
The government currently has many important defense programs, which are either in the final stages or are going to be launched soon. The new budget will give impetus to these plans and there will be a major increase in the capabilities of the forces. To strengthen maritime security, there are preparations to include additional state-of-the-art fighter aircraft in the Navy fleet. Work is underway on a deal for new fighter jets capable of operating from aircraft carriers, which will further increase India’s lethality at sea. To increase underwater strength, huge investments are being made on new generation stealth submarines. Equipped with modern technology, these submarines will be able to operate over long distances without coming to the surface, which will make monitoring and prevention of the enemy easier.
Focus on drones and unmanned systems
Keeping in view the needs of modern warfare, there is special emphasis on drones and unmanned systems. Drones with long range flight at high altitude, indigenous UAVs and systems to deal with drone attacks are being given priority, as their role has proved decisive in recent conflicts. Apart from this, many projects related to indigenous fighter aircraft, attack helicopters, missile systems, air defense and advanced radar are also moving forward. Participation of domestic defense companies is being increased in all these programmes, which will not only strengthen the army but will also take the country’s defense industry to new heights.
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