New Delhi: India may significantly boost military spending, with the defence ministry set to seek a sharp increase in its budget for the coming fiscal year to meet growing security challenges.
Tracking a global trend that has seen militaries substantially raise their budgets, the defence ministry will push for a 20% spending rise in the FY27 budget, defence secretary RK Singh said on Friday. If approved, this would mark a $15.2 billion boost in the defence budget next fiscal, with most of the capital earmarked for procurement from domestic companies.
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The defence ministry gets a 10% budget increase on average every year. However, given the current geopolitical scenario and the uncertain neighbourhood, a special hike will be requested, said Singh. There has been an urgency to modernise the armed forces and equip them with modern standoff weapons, air defence systems, and advanced drone capabilities, especially in the aftermath of Operation Sindoor.
In the current fiscal, the defence ministry has been allocated ₹8.17 lakh crore, including ₹27,886 crore marked exclusively for procurement from Indian private sector manufacturers. In all, 75% of the modernisation budget has been earmarked for procurement from domestic sources, though the actual spending on Indian companies was much higher at nearly 88%.
"We are in a particularly tough neighbourhood in many ways. So, we will be asking for a bit more than the normal 10% increase that we get, probably something closer to the 20% mark," Singh said at a Ficci seminar on Friday. "My personal view is that we'll have to keep it to that level, 20% year-on-year for the next few years." Singh also warned arms suppliers to deliver their products on time to the armed forces or face penalties and foreclosure of contracts.
Tracking a global trend that has seen militaries substantially raise their budgets, the defence ministry will push for a 20% spending rise in the FY27 budget, defence secretary RK Singh said on Friday. If approved, this would mark a $15.2 billion boost in the defence budget next fiscal, with most of the capital earmarked for procurement from domestic companies.
Also Read: Budget 2026- India’s space sector seeks triple budget boost and a satellite mission for remote regions
The defence ministry gets a 10% budget increase on average every year. However, given the current geopolitical scenario and the uncertain neighbourhood, a special hike will be requested, said Singh. There has been an urgency to modernise the armed forces and equip them with modern standoff weapons, air defence systems, and advanced drone capabilities, especially in the aftermath of Operation Sindoor.
In the current fiscal, the defence ministry has been allocated ₹8.17 lakh crore, including ₹27,886 crore marked exclusively for procurement from Indian private sector manufacturers. In all, 75% of the modernisation budget has been earmarked for procurement from domestic sources, though the actual spending on Indian companies was much higher at nearly 88%.
"We are in a particularly tough neighbourhood in many ways. So, we will be asking for a bit more than the normal 10% increase that we get, probably something closer to the 20% mark," Singh said at a Ficci seminar on Friday. "My personal view is that we'll have to keep it to that level, 20% year-on-year for the next few years." Singh also warned arms suppliers to deliver their products on time to the armed forces or face penalties and foreclosure of contracts.
