New Delhi has allocated 15% more to defense in the federal budget following a brief war with Pakistan
India has earmarked $85 billion for military spending in its budget for the 2026-27 fiscal year, marking a record 15% increase, Finance Minister Nirmala Sitharaman has told parliament in her annual budget speech.
The sharp rise follows a brief military conflict with neighboring Pakistan in May 2025. Capital expenditure for the armed forces has been set at $23 billion, aimed at funding major procurement programs.
“The Union Budget 2026-27 will help in further strengthening India’s defence capabilities,” Defense Minister Rajnath Singh later said in a post on X.
The key focus of the budget following Operation Sindoor, a limited military operation launched in response to cross-border hostilities with Pakistan earlier this year, is the modernization of the armed forces, Singh said.
The Union Budget 2026-27 will help in further strengthening India’s defence capabilities. I thank PM Shri @narendramodi for allocating a record Rs 7.85 Lakh crores towards Defence sector. pic.twitter.com/WhrSmOxFDn
— Rajnath Singh (@rajnathsingh) February 1, 2026New Delhi and Islamabad traded fire from May 7 to 10, following a militant attack on April 22 in Jammu and Kashmir that killed 26 people.
The clashes involved the extensive use of missile systems, underscoring the growing role of long-range strike capabilities.
The increased expenditure is expected to go towards Indian purchases of fighter aircraft, naval ships, and modern warfare equipment, including drones, The Week reported.
India is looking to create a rocket-missile force with weapons that can hit targets at different ranges, the chief of the army staff said, explaining that such a force is essential to boosting combat effectiveness.
Read more Nuclear neighbors and a two‑front threat: Why India needs a rocket forceNew Delhi approved a string of defense purchases in 2025, allocating $8.8 billion in December.
This followed a nod for purchases worth about $7.6 billion in August, which included BrahMos missiles and armed drones, along with upgrades to other existing platforms.
India, one of the world’s top defense importers, has historically relied on Moscow for equipment and technology. It views Russian missile technology as central to maintaining an airpower balance with its neighbors.
Discussions between Moscow and New Delhi on manufacturing Sukhoi Su-57 aircraft in India are reportedly at an advanced stage. Moscow is an active partner in New Delhi’s plans to make weapons locally, with some Russian defense equipment being already manufactured under licensing agreements in India.
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