Defence Budget Soars to Rs 7.8 Lakh Crore Post Operation Sindoor Success

He said that following India's historic success in the recent Operation Sindoor, this budget has reaffirmed the Central government's resolve to further strengthen the country's defence system.

Finance Minister Nirmala Sitharaman announced an allocation of Rs 7.8 lakh crore for the country's defence sector in the Union Budget for 2026-27, representing a 15 per cent increase over the corresponding figure of Rs 6.81 lakh crore for the previous financial year.

The defence forces have been allocated Rs 2.19 lakh crore for the purchase of military hardware as part of the capital outlay in the budget, which constitutes a 21.8 per cent increase compared with the Rs 1.80 lakh crore allocated in FY 2025-26.

In a video message, Singh said, "This budget lives up to the sentiments and expectations of the people. In addition, this budget gives a solid foundation to the Prime Minister's vision of a Aatmanirbhar and Viksit Bharat 2047, in which detailed arrangements have been made for the development of all sectors of society."

Welcoming the Rs. 7.85 lakh crore allocation for the defence sector in this budget, Singh expressed his heartfelt gratitude to PM Modi and said, "After the historic success of Operation Sindoor, this budget has reinforced our resolve to strengthen the security system of the country. This increase is more than 15 per cent compared to last year. That is, even this time, the biggest part of the Union Budget has been given to the Ministry of Defence."

The Defence Minister mentioned that this year, Rs. 2.19 lakh crore has been allocated for the overall capital expenditure of the Indian Armed Forces. The most important part of this budget, according to him, is the modernisation of tri-services, for which Rs. 1.85 lakh crore has been allocated this year, which is about 24 per cent more than last year.

He said that as a result of this development, India's military capacity will be "even stronger".

Singh also said that the welfare of the retired soldiers and their families has also been given priority in this budget.

"Under the Ex-servicemen Contributory Health Scheme, an increase of about 45 per cent compared to the current year, Rs 12,100 crore has been allocated," he said.

"Overall, this budget strengthens the balance of security, development and self-determination. I congratulate the citizens of the country on this budget," the Defence Minister added.

The increased outlay comes against the backdrop of Operation Sindoor and the changing geopolitical landscape.

Finance Minister Sitharaman also proposed the waiving of basic customs duty on raw materials imported for the manufacture of parts of aircraft to be used in maintenance, repair, or overhaul requirements, which will benefit units in the defence sector.

The approach of the budget is a continuation of the broader strategic shift to prioritise spending on force modernisation, air defence systems and next-generation platforms.

The increase in capex has been driven by higher allocations for fighter jets, warships, missiles, artillery guns and other state-of-the-art defence equipment.

The higher allocation of the purchase of defence equipment is expected to benefit both defence public sector undertakings and their private-sector suppliers, especially as order books across the sector have expanded sharply.

- IANS