India’s defence spending received its biggest push in over a decade as Finance Minister Nirmala Sitharaman announced a nearly 15% increase in allocation in the Union Budget. The total defence outlay has been raised to ₹7.85 lakh crore, underscoring the government’s focus on strengthening military preparedness and modernisation.
A significant portion of the increase has been directed towards capital expenditure, which has been pegged at ₹2.19 lakh crore. This marks a record 22% rise in funds meant for weapons procurement and modernisation of the Army, Air Force and Navy, coming in the aftermath of Operation Sindoor.
Capital Spending Gets Sharpest Boost
The sharp jump in capital allocation signals a renewed emphasis on acquiring advanced weapon systems, platforms and equipment across the three services. Capital expenditure typically covers big-ticket defence purchases and long-term capability upgrades, making it a key indicator of military modernisation.
In the previous financial year, 2025–26, the defence budget stood at ₹6.81 lakh crore, with ₹1.80 lakh crore allocated for capital spending. The latest figures reflect a substantial step-up compared with that base.
Biggest Increase in a Decade
Over the past ten years, annual increases in defence allocations have largely remained in the range of 9% to 10%. The current 15% jump marks a clear departure from that trend, making it one of the most pronounced increases in recent times.
The higher allocation comes at a time when defence preparedness and modernisation have gained renewed attention, with the government signalling its intent to accelerate upgrades and strengthen India’s overall military capability.
