https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

Defence Budget 2026-27 Hits Record Rs 7.85 Lakh Crore, Boosting Modernisation, Domestic Industry, and Veteran Welfare

Defence Budget 2026-27: Union Budget Boosts Defence Modernisation, Domestic Industry with Rs 7.85 Lakh Crore Allocation. Strengthens Armed Forces and Veterans’ Welfare.
Indian Masterminds Stories

New Delhi: The Ministry of Defence (MoD) has received an all-time high allocation of Rs 7.85 lakh crore in the Union Budget 2026-27, marking a 15.19% increase over the Budget Estimates (BE) of FY 2025-26. This unprecedented allocation, which accounts for 2% of India’s estimated GDP, underscores the government’s commitment to modernising the armed forces, enhancing operational readiness, promoting domestic defence industries, and providing quality healthcare to veterans.

Record Allocation for Capital Expenditure and Modernisation

A significant portion of the budget, Rs 2.19 lakh crore, has been earmarked for capital expenditure, representing a 24% increase in the Capital Acquisition budget compared to FY 2025-26. Out of this, Rs 1.85 lakh crore is allocated specifically for acquiring advanced platforms, including:

  • Next-generation fighter aircraft
  • Smart and lethal weapons
  • Ships and submarines
  • Unmanned aerial vehicles (UAVs) and drones
  • Specialist vehicles

The budget also addresses emergency procurement of arms and ammunition following Operation Sindoor, ensuring operational preparedness in the current geo-political scenario.

Raksha Mantri Rajnath Singh emphasized that this allocation is a strategic step towards achieving world-class capabilities and advancing PM Modi’s vision of an Aatmanirbhar Bharat.

Thrust on Domestic Industry and Self-Reliance

In line with the government’s import substitution and indigenisation drive, Rs 1.39 lakh crore, or 75% of the Capital Acquisition budget, has been allocated for procurement from domestic industries, including private players.

This move aims to:

  • Boost domestic defence manufacturing
  • Encourage private sector participation
  • Develop ancillary industries
  • Generate significant employment opportunities

Raksha Mantri noted that enhanced domestic procurement will have a long-term positive impact on the national economy while strengthening India’s defence self-reliance.

Sustaining Operational Readiness and Revenue Expenditure

The revenue allocation for FY 2026-27 stands at Rs 3,65,478.98 crore, which is 17.24% higher than the BE for FY 2025-26.

  • Rs 1,58,296.98 crore will be spent on operations and sustenance
  • The remainder will cover salary and allowances

This provision ensures the maintenance of vital platforms, procurement of operationally critical stores and spare parts, and day-to-day operational readiness.

Strengthening Border Infrastructure

The budget continues to focus on border area development, with the Border Roads Organisation (BRO) receiving Rs 7,394 crore under capital expenditure, up from Rs 7,146.50 crore last year.

Key projects include:

  • Construction of tunnels, bridges, and airfields
  • Enhancing regional development and tourism
  • Providing last-mile connectivity in border regions

Prioritising Veterans’ Healthcare

The government has reinforced its commitment to veterans through an enhanced allocation of Rs 12,100 crore for the Ex-Servicemen Contributory Health Scheme (ECHS) – a 45.49% increase over FY 2025-26 BE.

This funding will cover Medical Treatment Related Expenditure (MTRE) for veterans, marking a 300% increase over the last five years.

Boost to Defence Research and Development

The Defence Research and Development Organisation (DRDO) will receive Rs 29,100.25 crore, including Rs 17,250.25 crore for capital expenditure, to continue advancing cutting-edge defence technologies and projects.

Defence Pensions and Welfare

The defence pension budget stands at Rs 1,71,338.22 crore, 6.56% higher than FY 2025-26, catering to over 34 lakh pensioners via SPARSH and other authorised disbursing agencies.

Raksha Mantri Lauds the Budget

Through a post on X, Raksha Mantri Mr Singh thanked Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman, describing the budget as a “Yuva Shakti–driven Budget” aimed at transforming aspirations into achievements.

He highlighted three key priorities of the budget:

  • Accelerating and sustaining economic growth
  • Ensuring meaningful participation for all sections of society
  • Driving inclusive development while promoting manufacturing and sustainable infrastructure

Singh further noted that the Rs 7.85 lakh crore allocation strengthens the balance between security, development, and self-reliance, particularly in the wake of Operation Sindoor, and reaffirms the government’s resolve to bolster India’s military capabilities.


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
defence budget
Defence Budget 2026-27 Hits Record Rs 7.85 Lakh Crore, Boosting Modernisation, Domestic Industry, and Veteran Welfare
UPSC IFS Cadre Allotment 2025
Telangana IFS Officers Association Elects New Executive Team, Vinay Kumar Named President, Dr Priyanka Varghese Secretary
Air Marshal Inderpal Singh Walia Takes Over as AOC-in-Chief, Eastern Air Command
Air Marshal Inderpal Singh Walia Takes Over as AOC-in-Chief of Eastern Air Command | Profile & Career Highlights
Ashish Chauhan NSC
Union Budget 2026-27 Reinforces Growth with Fiscal Discipline: NSE MD Ashish Chauhan
From Farms to Future Jobs: Union Budget 2026-27 Leverages AI and Emerging Technologies to Build Capacity and Fulfil Aspirations
Union Budget 2026–27: AI, Emerging Technologies & Bharat-VISTAAR to Boost Farm Productivity, Skills & Future Jobs
Biopharma shakti hub Budget 2026
Union Budget 2026–27 Pushes India Towards Global Biopharma Hub with ₹10,000 Cr SHAKTI Scheme, 1,000+ Clinical Trial Sites & New NIPERs
Odisha govt_resized
Odisha Govt Promotes 4 Senior IAS Officers, Including Usha Padhee & Veer Vikram Yadav, to Additional Chief Secretary Rank
HPCL_logo_HIndustan Petroleum
Hindustan Petroleum Announces Retirement of Udit Nandi from Rajasthan Refinery Project in SEBI Disclosure
ADVERTISEMENT
ADVERTISEMENT
Videos
Mugdha Sinha
A Bottle-Painter, A Poetess, An Author, Avid Reader, Champion Player and A Successful IAS Officer – Mugdha Sinha Has Aced It All
WhatsApp Image 2026-01-26 at 8.12
Hemming ITDC To Provide Ultimate Travel, Tourism & Hospitality Experience | IAS Mugdha Sinha Video Interview
Desh Deepak Verma IAS Video Interview
The Life & Times of an UPSC Aspirant in Allahabad
ADVERTISEMENT
UPSC Stories
IAS Avdhija Gupta UPSC
She Cried, She Learned, She Returned: The Unbreakable UPSC Journey of IAS Avdhija Gupta
From three consecutive Prelims failures to securing AIR 43, IAS Avdhija Gupta’s UPSC CSE-2024 journey...
UPSC Logo Explained
Why the UPSC Centenary Logo Matters: A Visual Guide to 100 Years of Civil Services
The UPSC centenary logo marks 100 years of India’s civil services. Decode its symbols and trace the journey...
Bhilai Steel Plant Diploma Engineer to CGPSC 2024 Deputy Collector – Yashwant Dewangan
Lost Father at 17, Worked Full-Time: Bhilai Steel Plant Diploma Engineer to CGPSC 2024 Deputy Collector – Yashwant Dewangan
Yashwant Kumar Dewangan, a BSP diploma engineer from Korba, overcame personal and professional challenges...
Social Media
One-Horned Rhino Calf
Watch: First One-Horned Rhino Calf of 2026 Takes Birth at Jaldapara National Park, IFS Officer Shares Rare Footage
A newborn one-horned rhinoceros calf was spotted at Jaldapara National Park on January 1, 2026. IFS officer...
venomous banded krait
Rare Night Encounter: IFS Officer Spots Highly Venomous Banded Krait During Forest Patrol, Internet Amazed
An IFS officer’s night patrol video of a highly venomous banded krait has gone viral, highlighting India’s...
elephant rescue Karnataka
Heroic Karnataka Elephant Rescue: How a 28-Hour “Impossible Mission” Became a Triumph of Wildlife Care, IFS Parveen Kaswan Shares Video
A trapped elephant was rescued after 28 hours in Karnataka through a massive, expertly coordinated Forest...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
defence budget
Defence Budget 2026-27 Hits Record Rs 7.85 Lakh Crore, Boosting Modernisation, Domestic Industry, and Veteran Welfare
UPSC IFS Cadre Allotment 2025
Telangana IFS Officers Association Elects New Executive Team, Vinay Kumar Named President, Dr Priyanka Varghese Secretary
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Mugdha Sinha
WhatsApp Image 2026-01-26 at 8.12
Desh Deepak Verma IAS Video Interview
ADVERTISEMENT
ADVERTISEMENT