Total allocated in the budget ₹7.8 lakh crore to the Ministry of Defense for 2026-27. One of these is capital allocation ₹5.95 lakh crore has been set aside.
Defense Minister Rajnath Singh Welcome to Sunday Union Budget 2026-27 Presented by Finance Minister Nirmala Sitharaman And said it reinforced “the resolve to further strengthen the country’s defense system” after the Center proposed a huge defense budget ₹7,84,678 crore for the financial year 2026-27.
Union Defense Minister Rajnath Singh arrives in New Delhi to attend the Union Budget Session in Parliament. (ANI)The allocation for this financial year is a significant increase over last year’s allocation ₹6,81,210 crore and comes months after India’s Operation Sindur, a joint-military operation targeting terror camps inside Pakistan and Pakistan-occupied Kashmir (PoK). Follow live updates here.
Also Read | Key Takeaways from Budget 2026Sitharaman presented his ninth straight budget on Sunday, proposing a wave of reforms aimed at boosting spending on manufacturing and infrastructure.
Rajnath Singh in Union Budget 2026-27The Union minister said the budget “meets the sentiments and expectations of the people”. He also said that it “provides a strong foundation for Prime Minister Modi’s dream of a self-reliant India and a developed India by 2047”.
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Reacting to the huge allocation for the defense ministry, he told news agency ANI that it “strengthens the balance between security, development and self-reliance”.
“This budget allocation ₹7.85 lakh crore for the defense sector… After the historic success of Operation Sindoor this budget has strengthened our resolve to further strengthen the country’s defense system,” he told news agencies.
He further said, “This year there is a provision ₹2.19 lakh crore for the overall capital expenditure of our armed forces and the main focus of this budget is modernization of our three armed forces.
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Massive Defense Allocation in Union Budget 2026-27The total allocation has been kept in the budget ₹7.8 lakh crore to the Ministry of Defense for 2026-27. One of these is capital allocation ₹5.95 lakh crore has been set aside, an increase from last year’s figures ₹4.92 crores.
While overall capital expenditure increased by about 22% over the previous year, funds specifically allocated for modernization increased by 24%.
formula HT said The ministry sought a 20% increase, with the additional funding aimed at strengthening long-range strike capabilities, military aircraft, missiles and armed drones after Operation Sindur.
Defense Ministry officials believe the higher allocation will support efforts to upgrade the armed forces and their equipment. Projects related to Rafale fighter jets, submarines and unmanned aerial vehicles are in the works, sources added.
“Basic duty exemption is proposed on raw materials imported for manufacturing aircraft parts for maintenance, repair or overall requirements of units in the defense sector,” Sitharaman said.
