India, Feb. 3 -- The Government of India has issued a release:
Key Takeaways
Introduction
Modernisation Push
Boosting Indigenous Defence Manufacturing
Research, Development and Innovation
Enhanced Healthcare and Pension Support for Veterans
Conclusion
The Union Budget 2026-27, announced by the central government on February 01, 2026, places national security at the core of India's modernisation, self-reliance and innovation priorities. The Ministry of Defence has received the highest-ever allocation of Rs.7.85 lakh crore, an increase of 15.19% over Budgetary Estimates (BE) of FY 2025-26, accounting for 14.67% of the Union Budget which is highest among the Ministries. India's defence budget rose from Rs.2.53 lakh crore in 2013-14 to Rs.7.85 lakh crore in 2026-27, an increase of approximately Rs.5.32 lakh crore, marking about a three-fold rise.
Out of the total allocation made to the Ministry of Defence, 27.95% of the Defence Budget allocation is for capital expenditure, 20.17% for revenue expenditure on sustenance and operational preparedness, 26.40% for revenue expenditure on pay and allowances, 21.84% for defence pensions, and 3.64% for civil organisations.
A major highlight of the budget related to the defence sector is at modernising all the three services and enhancing future capabilities. The emphasis is on acquiring advanced platforms, cutting-edge technologies and force multipliers.
The Budget gives a strong thrust to Aatmanirbhar Bharat (Self-reliant India) by promoting indigenous manufacturing and reducing import dependence. Domestic defence industries, including private sector players, are key beneficiaries.
The budgetary allocation to Defence Research and Development Organisation (DRDO) has been increased to Rs.29,100.25 crore in FY 2026-27 from Rs.26,816.82 crore in FY 2025-26. Out of this allocation, a major share of Rs. 17,250.25 crore is allocated for capital expenditure.
Along with this, the central government has implemented a range of measures to promote R&D in defence manufacturing. As of 1st December 2025, some key initiatives included:
The Union Budget 2026-27 strengthens the central government's commitment to veterans' welfare through higher allocations for healthcare and pensions, ensuring quality medical services and timely financial support for ex-servicemen and their families.
The Union Budget 2026-27, the first Union Budget after the historic success of Operation Sindoor, reflects the Government's sustained focus on strengthening national security through modernisation, self-reliance and innovation. With a strong push for indigenous defence manufacturing, focused investments in research and infrastructure, and continued priority for the welfare of veterans, the Budget for Defence Sector promises more secure and resilient India, aligned with the long-term vision of Viksit Bharat@2047.
References:
Press Information Bureau
Union Budget 2026-27
Minister of Defence
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Disclaimer: Curated by HT Syndication.
