Budget 2026: Defense Allocation May Jump 20% Amidst Operation Sindoor Impact

• Budget 2026, to be presented on February 1, is expected to see a significant 20% increase in defense spending, influenced by Operation Sindoor.
• The current defense budget stands at 6.81 lakh crore rupees, with the proposed increase focusing on capital expenditure.
• FDI limits in the defense sector may be relaxed, potentially increasing from 49% to 74% via the automatic route for existing licensees.
• Increased funds will be allocated for new weapons, ammunition, technology procurement, and research and development for the armed forces.
• The move follows Operation Sindoor, where the army conducted airstrikes on terrorist hideouts in Pakistan, signaling ongoing counter-terrorism efforts.

Why It Matters: Budget 2026 is set to boost defense spending by 20% and relax FDI norms, driven by Operation Sindoor.