The Union Budget for 2026–27 has announced a record 15 per cent increase in India’s defence spending, underscoring a renewed focus on strengthening military capabilities. Presenting the general budget on Sunday, February 1, Finance Minister Nirmala Sitharaman allocated Rs 7.85 lakh crore to defence.
Of the total outlay, Rs 2.19 lakh crore has been earmarked for capital expenditure, marking a record 22 per cent rise. The enhanced allocation is aimed at advancing modernisation across all three wings of the armed forces.
Capital Outlay Sees Sharp Rise
The capital budget for defence has been fixed at Rs 2,19,306 crore, while revenue expenditure stands at Rs 5,53,668 crore. This includes Rs 1,71,338 crore allocated for defence pensions.
Within the capital segment, Rs 63,733 crore has been set aside for aircraft and aero engines, while Rs 25,023 crore has been allocated for strengthening the naval fleet.
Last year’s defence allocation stood at Rs 6,81,210 crore.
Pakistan’s Defence Budget After Operation Sindoor
Following India’s Operation Sindoor last year, launched in response to the Pahalgam terror attack, Pakistan raised its defence budget by 20 per cent. Under the operation, Indian forces struck terrorist hideouts across the border and later targeted Pakistani military infrastructure after the Pakistani Army intervened.
For the fiscal year 2025–26, Pakistan allocated 2.55 trillion Pakistani rupees (2,550 billion), which translates to approximately Rs 72,850 crore in Indian currency.
India’s Defence Spend Over 10 Times Pakistan’s
In comparative terms, India’s defence budget is now more than ten times that of Pakistan. While India continues to expand capital investment in military hardware and modernisation, Pakistan remains under severe financial stress and reliant on IMF assistance.
Prime Minister Shahbaz Sharif has publicly acknowledged that he and Army Chief Asim Munir approached several countries seeking financial support, even as Pakistan prioritised increased defence spending after Operation Sindoor.