In a strong signal of India’s evolving security priorities, Defence Secretary Rajesh Kumar Singh announced that the government may seek a 20% increase in the defence budget for the fiscal year 2025–26—double the typical annual rise of around 10%.
The move comes amid a complex geopolitical environment, heightened border tensions, and the need to accelerate military modernisation and self-reliance.
Higher Allocation to Support Capability Expansion
India currently spends about 1.9% of its GDP on defence, a figure officials say must increase to keep pace with capability development, technology upgrades, and emerging warfare domains. In the Union Budget 2025–26, the government allocated over ₹6.8 lakh crore to defence, with ₹1.8 lakh crore earmarked for modernisation.
Singh noted that the proposed 20% hike aims to fully fund ongoing and planned capability development, including advanced weapons, aircraft, naval assets, cyber and space warfare systems, and improved infrastructure for frontline troops.
Boost to Atmanirbhar Bharat & Domestic Defence Industry
A major focus of the expanded budget will be to increase domestic spending. Singh reiterated that foreign OEMs must partner with Indian companies for co-production if they want access to India’s defence market, in line with the government’s Atmanirbhar Bharat mission.
More positive indigenisation lists are expected soon, further restricting imports and encouraging Indian firms and MSMEs to develop critical defence technologies.
Operational Imperatives Driving the Rise
The Defence Secretary linked the need for a larger budget to:
- The continuing operational commitments, including Operation Sindoor
- The need to respond swiftly to an “increasingly complex security environment”
- Ensuring readiness across all three services through sustained logistics, maintenance, and infrastructure upgrades
He also highlighted India’s balanced procurement strategy—strong ties with longstanding partner Russia, growing purchases from the United States, and aggressive domestic manufacturing.
Industry Accountability & Faster Defence Procurement
The government has cautioned defence manufacturers against delays, stressing the need for timely contract execution. Singh emphasised that India’s expanding industrial base has the capacity to absorb the increased budget efficiently.
A Strategic Step Toward Military Preparedness
If approved, the 20% budget hike would mark one of India’s most substantial annual increases in recent years. It is expected to:
- Sharpen India’s military edge
- Strengthen domestic manufacturing
- Enhance strategic autonomy
- Support long-term economic and security objectives
India’s push for a larger defence budget reflects a proactive approach—strengthening deterrence, powering indigenisation, and securing national interests in an increasingly volatile region.
