India Increases Defence Budget with a Focus on Wages over Weapons

India has proposed a significant increase in its defence budget for the 2025-26 fiscal year, raising it to 6.81 trillion rupees. Despite this rise, most of the funds are dedicated to wages and pensions rather than new weapon acquisitions. Analysts express concern over the slow pace of defence deal procurements.

India has announced a proposed defence budget of 6.81 trillion rupees for the 2025-26 fiscal year, reflecting a 9.5% increase from last year. However, the budget largely covers wages and pensions, leaving limited funds for new weapon acquisitions.

The budget dedicates 4.7 trillion rupees to manpower costs, dwarfing the 1.80 trillion rupees capital outlay aimed at modernisation and procurement. This capital figure represents only a 4.6% increase from the previous year, causing analysts to recommend more substantial investment to bolster India's military capabilities against rivals such as China.

With 486 billion rupees allocated for aircraft and aero engines and 243.9 billion rupees for the naval fleet, India seeks to advance its military capabilities. Nevertheless, the slow procurement process hampers progress, with unspent budget from the current fiscal year illustrating the challenge. Defence experts and analysts assert the need for faster deal signings to ensure effective budget utilisation and modernisation efforts.