Jaipur: India’s defence budget has increased to Rs 7.85 lakh crore for the financial year 2026-27, with a capital outlay of Rs 2.19 lakh crore earmarked for modernisation and capital procurement, Defence Minister Rajnath Singh said while addressing a meeting of the Parliamentary Consultative Committee in Jaisalmer.
“As we all know, the biggest need for modernisation is the availability of financial resources. Keeping this in mind, we have increased the modernisation budget year after year. And we have not only increased it, but we have also spent it. The armies also understand very well that the government is committed to their needs. They put very important things in a priority list and utilise the budget well. And friends, I am also happy to tell you that in the financial year 2026-27, our total defence budget has increased to Rs 7,85,000 crore,” he added.
Highlighting the government’s focus on strengthening the armed forces amid changing global security challenges, the minister said modern warfare was increasingly being shaped by technology, including drones, missiles and air defence systems.
He said the conflicts between Russia and Ukraine, and Israel and Iran, have demonstrated the changing nature of warfare and the need for India’s armed forces to prepare for future security challenges. The minister outlined three key pillars of defence modernisation: increased budgetary allocation and capital acquisition, technological advancement, and human resource development.
On defence production and exports, he said India had made significant progress towards self-reliance. Defence production, which stood at approximately Rs 46,429 crore in 2014-15, had increased to around Rs 1.78 lakh crore in 2025-26. Similarly, defence exports, which were below Rs 2,000 crore in 2014, had risen to approximately Rs 40,000 crore. The government aims to increase defence production to Rs 3 lakh crore and defence exports to Rs 50,000 crore by 2029. The minister expressed confidence that exports would exceed the targeted figure.
Emphasising the role of technology, he said the Defence Research and Development Organisation (DRDO) was developing new systems, weapons and missiles. The government was also encouraging private sector participation by providing a level playing field to companies ranging from micro, small and medium enterprises (MSMEs) to large industries. He said India’s defence industry was increasingly contributing to the country’s security requirements and that visits to private-sector defence manufacturing facilities had given him an opportunity to witness their growing capabilities.
The minister also stressed that modernisation was not limited to purchasing advanced weapons and equipment but involved strengthening operational preparedness and developing skilled human resources. He said all three services were undertaking structural and organisational reforms to meet the requirements of modern warfare.
Citing examples from the Army, he referred to new formations and platforms, including ‘Ashni’, ‘Bhairon’ and ‘Shaktibaan’, which he said were helping address operational requirements.
The minister said India’s objective was to develop an indigenous defence ecosystem that would reduce strategic dependence on foreign suppliers and strengthen the country’s strategic autonomy.
He added that the meeting in Jaisalmer provided an opportunity for members to discuss defence-related issues in detail and understand ground realities, particularly in border and farming areas. He said suggestions made during meetings of the Parliamentary Consultative Committee were beneficial and assured members that their recommendations would be considered.
The minister said India’s objective was to develop an indigenous defence ecosystem that would reduce strategic dependence on foreign suppliers and strengthen the country’s strategic autonomy.
He added that the meeting in Jaisalmer provided an opportunity for members to discuss defence-related issues in detail and understand ground realities, particularly in border and farming areas.
The Defence Minister said suggestions made during meetings of the Parliamentary Consultative Committee were beneficial and assured members that their recommendations would be considered. The meeting was followed by a detailed presentation on the modernisation of the Indian armed forces.
(IANS)
