India's Defence Budget Soars to Rs 5.9 Lakh Crore Post Operation Sindoor

• India's defence budget increased by 19% year-on-year to Rs 5.9 lakh crore (excluding pensions) after Operation Sindoor, reflecting a renewed focus on military preparedness.
• Capital expenditure received a significant boost, rising to Rs 2.2 lakh crore from Rs 1.8 lakh crore, now accounting for 28% of the total defence budget.
• The long-term trend shows defence capital outlay more than doubling from Rs 86,357 crore in 2016-17 to Rs 2.2 lakh crore in FY27.
• Increased capital spending is driven by higher allocations for aircraft, naval platforms, missiles, and artillery, with a strong emphasis on domestic procurement and indigenization.
• Defence PSUs like Hindustan Aeronautics Ltd, Mazagon Dock Shipbuilders, and Bharat Electronics Ltd, along with private players, are set to benefit from expanded order books and increased indigenous manufacturing.

Why It Matters: India significantly boosts defence spending and capital outlay post Operation Sindoor, focusing on modernization and indigenization.