A substantial portion of the budget, ₹2,19,306 crore, has been earmarked for capital expenditure, primarily to fund the acquisition of new weapons systems, aircraft, warships, and other critical military platforms — a 21.84% rise from the 2025-26 budget estimates
Riding on the momentum of the Indian military’s decisive action against Pakistan in May last year, the government has significantly scaled up defence spending for 2026–27, allocating ₹7.84 lakh crore — an increase of 15% over the previous year’s outlay of ₹6.81 lakh crore. This is the record allocation among all ministries.
The hike in the defence outlay against the backdrop of “historic success of Operation Sindoor” reflects a renewed determination to make India’s defence system even more robust, Defence Minister Rajnath Singh said on February 1.
The hike in the defence outlay against the backdrop of “historic success of Operation Sindoor” reflects a renewed determination to make India’s defence system even more robust, Defence Minister Rajnath Singh said on February 1.