India has announced a substantial increase in its defence budget following what it describes as setbacks suffered during “Operation Sindoor” against Pakistan, signalling a renewed focus on military preparedness and weapons modernisation.
The Indian government presented its budget for the fiscal year 2026 on Sunday, allocating a total defence outlay of 7,850 billion Indian rupees. This marks an increase of nearly 15 percent from last year’s defence budget of 6,810 billion rupees.
The rise reflects New Delhi’s policy shift after its defeat in a brief military confrontation with Pakistan in May 2025, with greater emphasis now being placed on strengthening military readiness and procuring advanced weapon systems.
A significant portion of the increase has been directed towards capital expenditure for defence, which has risen from 1,800 billion rupees last year to 2,310 billion rupees in the current budget, representing a jump of 28 percent. The increase indicates the government’s intent to prioritise modern arms acquisitions and boost the domestic defence manufacturing sector.
Presenting the budget in parliament, India’s Finance Minister Nirmala Sitharaman said that 2,190 billion rupees had been earmarked specifically for military modernisation, an increase of 21.84 percent compared to the previous year.
Spending on routine military requirements, including fuel, ammunition, maintenance and personnel salaries, has also been raised by 17.24 percent. Meanwhile, the allocation for military pensions has been increased to 1,710 billion rupees.