India's Defence Budget Soars to ₹7.85 Lakh Crore, Capex Hits Record ₹2.31 Lakh Crore
Budget
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CNBC TV18•01-02-2026, 19:50
India's Defence Budget Soars to ₹7.85 Lakh Crore, Capex Hits Record ₹2.31 Lakh Crore
- •India's Union Budget 2027 allocates ₹7.85 lakh crore for defence, a 15.2% increase from FY26, emphasizing long-term capability building.
- •Overall defence capital expenditure rises by 20.1% to ₹2.31 lakh crore, reflecting a strong focus on modernization and indigenous manufacturing.
- •The modernization budget alone sees a 24% increase, prioritizing upgrades in platforms, weapons, and technology.
- •Domestic defence production reached ₹1.51 lakh crore in FY25, with exports at ₹23,622 crore, aiming for ₹3 lakh crore production and ₹50,000 crore exports by 2029.
- •Industry leaders like Thales welcome the increased allocation and measures like customs duty exemption, reinforcing India's strategic intent for defence and aerospace.
Why It Matters: India significantly boosts its defence budget and capital expenditure, prioritizing modernization, indigenization, and self-reliance.
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