India Boosts Defence Spending in 2025-26 Budget

Finance Minister Nirmala Sitharaman has announced a Rs 11.21 lakh crore capital expenditure for 2025-26, with the defence sector receiving a significant 4.6% hike. Despite unchanged budgets for railways and roads, India's push for self-reliance in defence manufacturing continues with rising exports and strategic investments.

In a strategic move to bolster India's economic and defense prowess, Finance Minister Nirmala Sitharaman has earmarked Rs 11.21 lakh crore for capital expenditure in the Union budget for the fiscal year 2025-26. This allocation represents a modest 0.9% increase over the previous year's budget but shows a substantial hike when compared to the revised estimate for 2024-25, which stood at Rs 10.18 lakh crore.

The defense sector stands out in this financial blueprint, receiving a 4.6% boost in capital expenditure, totaling Rs 1.8 lakh crore for 2025-26. This marks a significant increase of 13.3% over the revised expenditure estimate of Rs 1.59 lakh crore for 2024-25. The government is keen on driving domestic defense manufacturing by emphasizing indigenous design, production, and exports.

Further strengthening the defense sector, India's exports hit a record Rs 21,083 crore in 2023-24, reflecting a dramatic 31-fold growth over the past decade. However, the budgets for critical infrastructure in railways and roads remain unchanged for 2025-26, signaling a strategic balance in economic priorities.

(With inputs from agencies.)