Prime Minister Narendra Modi on Sunday said the government has a responsibility to modernise the country’s defence sector in line with “current realities,” pointing to the sustained rise in defence budget allocations as evidence of that commitment.
In an interview with news agency PTI, Modi said evolving security challenges and rapid technological shifts demand continuous upgrades in military capability. He noted that higher budgetary outlays in recent years are aimed at strengthening preparedness, accelerating procurement and building long-term capacity across the armed forces, with a parallel push for self-reliance in defence production.
India’s defence outlay has recorded another double-digit increase, underscoring the government’s renewed focus on military preparedness in the aftermath of Operation Sindoor.
Defence spending, excluding pensions, has been raised to Rs 5.9 lakh crore from Rs 4.9 lakh crore in FY26 Budget Estimates — a year-on-year growth of around 19 percent. Over the past decade, the defence Budget has nearly doubled, signalling a steady policy thrust on modernisation, indigenisation and higher operational readiness.
A notable shift this year is the sharper emphasis on capital expenditure. The government has earmarked Rs 2.2 lakh crore for capital spending in the sector, up from Rs 1.8 lakh crore budgeted earlier for FY26.
This pushes the share of capital expenditure to roughly 28 percent of the total defence Budget, compared to about 26.4 percent previously, indicating a stronger tilt toward equipment upgrades, infrastructure and technology acquisition.
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