Defense Budget 2026: Sitharaman May Boost Allocation by 8-10% Amid Rising Security Challenges

• Finance Minister Nirmala Sitharaman is expected to increase the defense budget allocation by 8-10% for Union Budget 2026.
• The anticipated increase is driven by growing security challenges and a focus on achieving self-reliance in defense.
• Last year, Rs 6.81 lakh crore was allocated, a 9.5% rise, emphasizing border infrastructure and domestic production.
• Experts like Motilal Oswal predict a 15% increase in capital expenditure for defense, focusing on manufacturing, startups, and drones.
• The government aims to boost domestic production, R&D, UAVs, and anti-drone systems, as evidenced by successes like Operation Sindoor.

Why It Matters: Union Budget 2026 is set to significantly increase defense spending, prioritizing self-reliance and domestic production.