The Union Budget 2025-26 has allocated ₹6,81,210 crore to India’s defence sector, emphasizing modernization and self-reliance in defence technology. This increase from last year’s ₹6.21 lakh crore demonstrates the government’s ongoing commitment to national security amid evolving geopolitical challenges.
Capital Outlay Focused on Modernization
The budget includes a capital outlay of ₹1.92 lakh crore, which will fund the procurement of key defence equipment and infrastructure upgrades. The government aims to enhance combat readiness through investments in modern weapon systems, aircraft, and naval assets.
On the operational side, ₹4,88,822 crore has been allocated for revenue expenditure, which includes ₹1.60 lakh crore for pensions for retired defence personnel.
Promoting Indigenous Defence Production
In line with the Aatmanirbhar Bharat initiative, the government seeks to reduce dependency on imports by prioritizing the development of indigenous equipment. This strategy involves collaborations with domestic industry partners to enhance R&D, increase manufacturing capabilities, and boost defence exports.
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Infrastructure Expansion for National Security
The budget outlines measures to strengthen border security and improve infrastructure in critical regions. Modernization efforts are expected to support military operations across the Army, Navy, and Air Force, ensuring preparedness for both internal and external threats.
The enhanced budget also aligns with India’s efforts to maintain technological superiority by expanding infrastructure for local defence manufacturing. With investments focused on modern military capabilities, India aims to position itself as a key player in global defence innovation.
Commitment to Security and Self-Reliance
The increased allocation underscores India’s broader objectives of safeguarding national security, promoting self-reliance, and addressing geopolitical concerns. Analysts believe that the emphasis on indigenous production and modernization will significantly improve operational efficiency and military capabilities.
