New Delhi, Feb 01 (V7N) — India has once again significantly increased its defense budget. In the proposed budget for the 2026–27 fiscal year, the Indian government has allocated over ₹8.5 lakh crore to the defense sector, marking an increase of about 15 percent compared to the previous year.

The increased allocation will be used to procure advanced technology weapons, modernize the armed forces, and strengthen the naval fleet. Customs duties on components used in aircraft manufacturing, as well as on aircraft repair and maintenance materials, will also be waived.

Indian Union Finance Minister Nirmala Sitharaman presented the national budget in the Indian Parliament on Sunday.

According to budget documents, ₹7.85 lakh crore has been earmarked for defense, which is nearly ₹1 lakh crore more than the ₹6.81 lakh crore allocated in the 2025–26 fiscal year. Of the total allocation, around ₹2.20 lakh crore will be spent in the capital sector, while ₹5.54 lakh crore will go toward the revenue sector. Allocations in these sectors have increased by 21.84 percent and 17.24 percent, respectively.

Indian Defense Secretary Rajesh Kumar Singh welcomed the budget, saying the Defense Ministry was pleased with the enhanced allocation, which he described as essential for strengthening national security.

Defense Minister Rajnath Singh said the budget reflects public expectations and supports Prime Minister Narendra Modi’s vision of building a self-reliant and developed India by 2047.

According to Indian media outlet Times of India, around ₹2.19 lakh crore has been specifically allocated for modernization of the armed forces, including the purchase of Rafale fighter jets, advanced submarines, drones, and naval assets.

Meanwhile, the budget also includes substantial foreign aid allocations for neighboring countries. Bhutan will receive the highest assistance at ₹2,288.56 crore, followed by Nepal (₹8 billion), Sri Lanka (₹4 billion), and Afghanistan (₹1.5 billion).

India has allocated ₹60 crore for Bangladesh in the new fiscal year. In comparison, ₹120 crore was allocated last year, which was later revised down to approximately ₹34.5 crore.

India’s central budget is traditionally divided into Part A, which outlines new policies and projects, and Part B, which focuses mainly on taxation and customs proposals.

END/SMA/AJ