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New Delhi: The Union Budget 2026 has marked a historic rise for India’s defence sector, allocating Rs 7.85 lakh crore, a sharp increase from Rs 6.81 lakh crore last year, underscoring the government’s
renewed focus on military modernisation in the post-Operation Sindoor security environment. According to official figures, the defence outlay for 2026–27 stands at Rs 7,84,678 crore, roughly 2 % of India’s projected GDP, representing a 15.19% increase over FY 2025–26. Defence now accounts for 14.67 % of total central government expenditure, the highest among all ministries.Of the total outlay, capital expenditure, used for new weapons, aircraft, ships, submarines, drones, and other modernisation, has been pegged at Rs 2,19,306 crore, while revenue expenditure stands at Rs 5,53,668 crore, including Rs 1,71,338 crore for pensions. This substantial capital boost is a direct response to the financial requirements arising from emergency procurement after Operation Sindoor, which saw Indian armed forces launch decisive strikes on terrorist camps in Pakistan and Pakistan-Occupied Kashmir (POK).“It is the first budget since Operation Sindoor, and a double-digit increase for the defence ministry was always on the anvil,” officials told Times Now, highlighting that the capital allocation, set above Rs 2 lakh crore, is the highest ever in India’s history.
Last Year’s Acquisitions and Modernisation Progress
FY 2025–26 was a busy year for India’s armed forces, with a focus on strengthening capabilities across air, land and sea domains.Indian Air Force (IAF)The IAF received additional Tejas Mk1A aircraft as part of the indigenous fighter expansion programme.Rafale deliveries continued, with plans for a potential 114-aircraft deal by March 2027 still under discussion. Negotiations remain in the works, including indigenous content requirements and price discussions after the Defence Acquisition Council’s approval.Preparations for air-to-air refuellers and AWACS systems have been finalised, with costings done for joint procurement with the USA and Israel (refuellers) and Brazil (AWACS). These platforms are considered force multipliers for the IAF, dramatically enhancing operational reach and surveillance capabilities.Indian NavyThe Navy expanded its fleet with new warships and interceptor craft, improving coastal and blue-water defence.MH-60R Seahawk helicopters were inducted for anti-submarine warfare, and the Navy also advanced plans for air-independent propulsion (AIP) submarines.A Rs 25,023 crore allocation in the new budget reflects the government’s intent to continue strengthening naval capabilities with both surface combatants and sub-surface platforms.Indian Army & Joint ServicesApproval and induction of MALE drones, unmanned surveillance systems and advanced artillery were major achievements.Procurement of precision-guided munitions, upgraded tanks and air defence systems (like QRSAM) ensured readiness for conventional and high-intensity operations.The Army also benefited from enhanced ammunition stocks, leveraging domestic production under Make in India initiatives.According to Times Now exclusive, the combination of Operation Sindoor’s operational success and the prior year’s acquisitions gave the armed forces a significant strategic edge, strengthening both deterrence and rapid-response capability along India’s borders.Budget 2026–27: Big-Ticket Acquisitions & Modernisation Plans
The 2026–27 budget builds on last year’s acquisitions with highly strategic investments, prioritising future-ready technology and self-reliance.Air PowerRafale fleet expansion continues, with negotiations ongoing for 114 additional aircraft.Funding for aero engines, training platforms and indigenous programmes under DRDO-Safran collaboration has been earmarked. This Rs 2,650 crore project aims to develop next-generation engines for fighter aircraft.Procurement of air-to-air refuellers and AWACS will enhance aerial reach, surveillance and strike capabilities.Key Numbers| Category | Allocation | Purpose |
| Aircraft And Aero Engines | 63,733 | Fighter jets, engines, AWACS, refuellers |
| Naval Fleet | 25,023 | Warships, submarines, interceptor craft |
| Army And Others | 2,19,306 | 2,19,306 |
| Revenue Expenditure | 3,65,668 | Operations, salaries, training |
| Defence Pensions | 1,71,338 | Retired personnel support |
