India's Defence Budget Soars: Double-Digit Hike for Modernisation, Self-Reliance

World
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Moneycontrol•01-02-2026, 14:24
India's Defence Budget Soars: Double-Digit Hike for Modernisation, Self-Reliance
- •India's defence budget for 2026–27 sees a robust double-digit increase, reaching Rs 7,84,678 crore, up from Rs 6,81,210 crore.
- •The hike signals a shift towards sustained military strengthening, focusing on long-term deterrence and strategic autonomy amid rising border volatility with Pakistan, China, and Bangladesh.
- •Capital expenditure is prioritised, with Rs 2,19,306 crore allocated for platforms, weapons, and technology, reflecting a structural transformation in military planning.
- •Significant allocations include Rs 63,733 crore for aircraft and aero engines, and Rs 25,023 crore for the naval fleet, reinforcing air power and maritime security.
- •The Budget boosts Aatmanirbhar Bharat by easing customs duties for defence manufacturing components, encouraging domestic production and reducing import dependence.
Why It Matters: India's substantial defence budget increase prioritises modernisation, self-reliance, and strategic autonomy amidst regional threats.
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