Following the military tensions with Pakistan in May, India has increased its defence budget by 15 percent.
Indian Finance Minister Nirmala Sitharaman, while presenting the central budget for the fiscal year 2026–27, allocated $85.4 billion for defence, marking a significant increase compared to last year.
According to the budget presented in the Lok Sabha, the increase in defence spending aims to acquire modern technology, purchase weapons and military equipment, and further strengthen the defence system. The Indian Ministry of Defence stated that the budget will also focus on simplifying procurement procedures and ensuring better utilisation of resources.
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Budget documents reveal that funds allocated for the purchase of weapons and defence equipment have been increased by 21.84 percent, while additional funds have also been set aside for routine defence services expenses, fuel, maintenance, and salaries.
This increase comes at a time when a military standoff between India and Pakistan emerged in May last year. Tensions escalated after India claimed to have targeted militant hideouts in Pakistan following an attack in Pahalgam in occupied Kashmir, an operation it named “Operation Sindoor.”
Indian Defense Minister Rajnath Singh welcomed the increase in the defence budget, stating that it would further enhance India’s defence capabilities. However, defence experts have expressed mixed views, with some analysts arguing that due to inflation and the depreciation of the rupee, the 15 percent increase may have a limited practical impact.
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