Defence Budget 2026: 20% Hike Expected, India to Boost High-Tech Weapon Manufacturing
Budget
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CNBC Awaaz•20-01-2026, 10:00
Defence Budget 2026: 20% Hike Expected, India to Boost High-Tech Weapon Manufacturing
- •Budget 2026, to be presented on February 1, 2026, is expected to increase the Ministry of Defence's budget by at least 20%.
- •The allocation could rise from 6.81 lakh crore rupees to 8 lakh crore rupees or more, focusing on new weapon purchases, factory setup, and border security.
- •FDI limit in the defense sector is anticipated to increase from 49% to 74%, promoting 'Atmanirbhar Bharat' in high-tech weapon manufacturing.
- •The budget increase is driven by the evolving nature of warfare, emphasizing drones, AI, and modern security systems, as seen in the India-Pakistan conflict of 2025.
- •Capital expenditure for modernization, new weapons, and factory building is planned to increase from 26% to 30% of the total defense budget.
Why It Matters: India's Defence Budget 2026 is set for a significant hike to boost self-reliance in high-tech weapon manufacturing.
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