US EditionUnion Budget 2026: Defence Allocation Set at ₹7.85 Lakh Crore, up From ₹6.81 Lakh Crore Last Year
India raises defence budget by 15% to Rs 7.85 lakh crore, with capital outlay up nearly 22%, and waives customs duty on aircraft parts to boost domestic aerospace industry.
- On February 1, 2026, the Union Budget set a defence outlay of ₹7.85 lakh crore for 2026‑27, a 15% increase over last year’s ₹6.81 lakh crore.
- Defence Minister Rajnath Singh said the budget prioritises modernisation, technological innovation and streamlined procurement for the three services, with allocation around two per cent of projected GDP for 2026‑27.
- Capital outlay is Rs 2,19,306 crore and revenue expenditure is Rs 5,53,668 crore, including Rs 1,71,338 crore for pensions, with Rs 63,733 crore for aircraft and Rs 25,023 crore for the naval fleet.
- Exempting basic customs duty on aircraft parts will boost domestic defence and aerospace industry, and the budget provides Rs 12,100 crore for the Ex‑Servicemen Contributory Health Scheme, about 45% higher.
- Looking to major acquisitions, Defence Secretary Rajesh Kumar Singh had sought around 20% increase and a 2.5% of GDP target, which the current allocation does not meet.
24 Articles
24 Articles
Aircraft, warships and pensions: How Rs 7.84 lakh crore defence budget will be spent
India has significantly increased its defence budget for the financial year 2026–27, allocating Rs 7.84 lakh crore to strengthen the armed forces and boost military modernisation. The new allocation marks a 15 per cent rise compared to the Rs 6.81 lakh crore provided in the current financial year. The government said the higher outlay reflects India’s evolving security needs, particularly in light of challenges along its borders with China and P…
Govt raises defence spending to Rs 7.85 lakh crore
New Delhi: India on Sunday, February 1, set aside Rs 7,84,678 crore as defence outlay for 2026-27 over the current fiscal’s allocation of Rs 6.81 lakh crore with a major increase in capital expenditure as the military focuses on modernisation in the face of security challenges from China and Pakistan. The increase in the defence outlay against the backdrop of “historic success of Operation Sindoor” has further strengthened our resolve to make In…
Union Budget 2026: Defence Allocation Hiked 15% to INR 7.8 Lakh Crore in Budget | 📰 LatestLY
The defence forces have been allocated Rs 2.19 lakh crore for the purchase of military hardware as part of the capital outlay in the Budget, which constitutes a 21.8 per cent increase compared with the Rs 1.80 lakh crore allocated in FY 2025-26. The increased outlay comes against the backdrop of Operation Sindoor and the changing geopolitical landscape. 📰 Union Budget 2026: Defence Allocation Hiked 15% to INR 7.8 Lakh Crore in Budget.
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