New Delhi — The Union Budget 2026–27 has provided a decisive boost to India’s defence preparedness, with an allocation of ₹7.85 lakh crore for the sector, reinforcing the government’s commitment to national security, military modernisation, and self-reliance, Defence Minister Rajnath Singh said on Saturday.
Welcoming the budget presented by Finance Minister Nirmala Sitharaman, the Defence Minister described it as a strong affirmation of the government’s resolve to build a robust, resilient, and foolproof security architecture, particularly in the wake of the successful Operation Sindoor, which underscored India’s operational readiness and strategic capability.
In a statement shared publicly, Singh said the defence outlay strikes a careful balance between security, development, and self-reliance, aligning with Prime Minister Narendra Modi’s long-term vision of an Aatmanirbhar and Viksit Bharat.
Major Push for Capital Acquisition and Modernisation
A key highlight of the defence budget is the significant increase in capital expenditure. According to Singh, over ₹2.19 lakh crore has been allocated under the capital head for the Armed Forces, with ₹1.85 lakh crore specifically earmarked for capital acquisition.
This represents an increase of nearly 24 per cent over the capital acquisition budget for FY 2025–26 and is expected to substantially enhance India’s military capabilities. The enhanced allocation will support the procurement of advanced platforms, weapons systems, and critical technologies across the Army, Navy, and Air Force.
The Defence Minister emphasised that modernisation of the Armed Forces remains a central priority of the government. The increased capital outlay is aimed at accelerating capability development, improving combat readiness, and ensuring that the armed forces are equipped to address evolving security challenges across land, sea, air, cyber, and space domains.
Welfare of Ex-Servicemen a Key Priority
The budget has also placed strong emphasis on the welfare of veterans and their families. The allocation for the Ex-Servicemen Contributory Health Scheme (ECHS) has been raised to ₹12,100 crore, marking a 45.49 per cent increase over the Budget Estimates of FY 2025–26.
Singh said the enhanced provision reflects the government’s unwavering commitment to ensuring quality healthcare and social security for ex-servicemen and their dependents. He described the increased ECHS allocation as a clear demonstration of the government’s resolve to honour the sacrifices of veterans by strengthening institutional support systems for their well-being.
Congratulating the Finance Minister
The Defence Minister congratulated Finance Minister Nirmala Sitharaman for presenting what he termed an “excellent” and forward-looking budget, prepared under the guidance of Prime Minister Modi. He said the budget resonates with public expectations and lays a strong foundation for inclusive and sustainable growth.
According to Singh, the budget provides adequate provisions for the upliftment of all sections of society while reinforcing national priorities such as defence preparedness, domestic manufacturing, infrastructure development, and youth empowerment.
Aligned with Vision of Viksit Bharat
Singh further noted that under Prime Minister Modi’s leadership, India’s journey towards becoming a developed nation continues to gain momentum. He described the Union Budget 2026–27 as a “youth-driven budget” that aims to convert aspiration into achievement and potential into performance.
He highlighted that the budget is inspired by three core duties or kartavyas: accelerating economic growth, fulfilling the aspirations of citizens, and ensuring meaningful participation for all sections of society. Together, these priorities are expected to promote inclusive development, strengthen the manufacturing ecosystem, and create sustainable infrastructure.
Special focus, Singh added, has been placed on ensuring that the benefits of growth reach the poor, underprivileged, and disadvantaged, reinforcing the government’s commitment to social equity alongside national security.
Strengthening Security Through Self-Reliance
With a continued focus on indigenous defence production, the enhanced capital allocation is also expected to provide momentum to India’s defence manufacturing ecosystem. The budget is seen as a catalyst for further reducing import dependence, encouraging innovation, and strengthening domestic industry participation in defence procurement.
As geopolitical challenges evolve and security dynamics become increasingly complex, the Defence Budget 2026–27 signals a clear intent to combine military strength, welfare commitments, and economic resilience, positioning India for sustained growth and strategic stability in the years ahead.
