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Defence Budget Soars 15% to ₹7.85 Lakh Crore, Focus on Modernisation

Defence Secretary Rajesh Kumar Singh welcomed the Union Budget 2026-27, calling it a significant boost for defence preparedness. The overall defence budget sees a 15% increase to ₹7.85 lakh crore, with capital expenditure for modernisation surging by 21% to approximately ₹2.9 lakh crore. Key allocations will fund major projects like Rafale fighter jets, submarines, and unmanned aerial vehicles. Finance Minister Nirmala Sitharaman also announced a customs duty exemption on raw materials for aircraft parts used in defence maintenance.

Key Points: Defence Budget 2026-27: ₹7.85L Cr Allocation, 21% Capex Hike

  • 15% overall defence budget increase
  • 21% hike in capital expenditure for modernisation
  • Customs duty exemption on aircraft parts
  • Major projects for Rafale jets & submarines
2 min read

Defence Secy Rajesh Kumar Singh welcomes Union Budget as 'Significant boost' for India's Defence preparedness

Defence Secretary welcomes 15% budget hike to ₹7.85 lakh crore. Capital outlay for modernisation jumps 21% to ₹2.19 lakh crore for jets, subs, and drones.

"a significant boost for the country's defence preparedness - Rajesh Kumar Singh"

New Delhi, February 1

Defence Secretary Rajesh Kumar Singh on Sunday welcomed the Union Budget 2026-27, describing it as a "significant boost" for the country's defence preparedness.

He highlighted that the allocations will strengthen modernisation, capital expenditure, and overall operational capabilities of the Indian Armed Forces.

"I am happy with the budgetary allocations announced by the Finance Minister as part of this year's budget... The overall budget for the Ministry of Defence is going to be 7.85 lakh crores, which is a 15 % increase over the allocation for last year. More importantly, in the area of CAPEX, the overall capital expenditure outlay has gone up by 21 % to about 2.9 lakh crores. And most critically, when it comes to the modernisation, budget is actually spent on modern equipment and other technological upgrades required for boosting the capabilities of our armed forces," he said.

Earlier today, the Centre allocated a budget of Rs 7.8 lakh crore to the Defence Ministry for the year 2026-27. Defence forces will receive Rs 2.19 lakh crore for modernisation under the Capital Outlay budget.

Overall, the defence ministry will see a 15 per cent increase in its budgetary allotment. In FY26-27, there is a 21.84 percent increase in capital outlay, hiked from Rs 1.80 lakh crore in FY 25-25 to Rs 2.19 lakh crore.

The Defence Ministry has major projects in the pipeline, such as contracts for Rafale fighter jets, submarines, and unmanned aerial vehicles.

The Defence budget (civil) has been reduced by 0.45 per cent as compared to last year's Rs 28,554.61 crore.

Meanwhile, the Defence Services (Revenue) and Capital Outlay were allocated Rs 3,65,478.98 crore and Rs 2,19,306.47 crore, respectively, reflecting jumps of 17.24 per cent and 21.84 per cent.

The allocation for Defence Pensions also saw a rise, with the Centre allotting Rs 1,71,338.22 crore.

In a boost to the defence sector, Union Finance Minister Nirmala Sitharaman announced, "It is proposed to exempt basic customs duty on raw materials imported for the manufacture of parts of aircraft to be used in maintenance, repair or overall requirements by units in the defence sector."

- ANI

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Reader Comments

S
Sarah B
While the boost is impressive, I hope a significant portion is directed towards R&D and indigenous manufacturing under 'Make in India'. True strength comes from self-reliance, not just importing expensive platforms.
P
Priya S
Good news overall. But the reduction in the civil budget, even if small, is a bit concerning. Hope it doesn't affect the welfare and housing projects for our jawans and their families. They are the backbone.
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Rohit P
Finally! The customs duty exemption on aircraft parts is a smart move. It will reduce maintenance costs and improve operational readiness. More such pragmatic policies are needed. 💪
A
Aman W
With the security challenges we face, this budget is a necessity, not a luxury. The focus on modernisation through capital expenditure is the right approach. Hope the funds are utilized efficiently without delays.
K
Kavya N
The pension allocation increase is a respectful gesture towards our veterans. They served the nation, and the nation must take care of them. Salute to all our ex-servicemen.

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