The Union Budget to be presented on February 1 is expected to mark a historic moment for India’s defence preparedness. Coming in the aftermath of the successful Operation Sindoor, the government is preparing for a record-breaking increase in defence spending, signalling a decisive shift towards strengthening military capability.
According to sources cited by ET Now, the total allocation for the Ministry of Defence could cross ₹7 trillion, with more than ₹2 trillion earmarked exclusively for capital expenditure, including the procurement of weapons and advanced military platforms. If confirmed, this would represent the largest defence budget in India’s history.
Double-Digit Growth Likely
Officials indicate that the defence budget may see a double-digit increase of 10 percent or more, a sharp jump compared to previous years. The capital outlay—critical for modernisation and force readiness—is also expected to rise at a similar pace, reflecting the government’s focus on long-term strategic capabilities rather than routine expenditure.
The budget will be the first major policy statement after Operation Sindoor, during which Indian armed forces carried out precision strikes on terrorist infrastructure in Pakistan and Pakistan-occupied Kashmir (PoK).
Big Boost for All Three Services
While all three armed forces are set to benefit from the enhanced allocation, the Indian Air Force (IAF) is expected to receive the largest share. Key acquisitions under consideration include air-to-air refuellers and Airborne Warning and Control Systems (AWACS)—both critical force multipliers that significantly enhance operational reach and surveillance capability.
Negotiations for refuellers are reportedly underway with the United States and Israel, while Brazil is being considered as a potential partner for AWACS platforms.
Mega Defence Deals on the Horizon
Several major defence deals could gain momentum following the budget announcement. A proposed €30 billion deal for 114 Rafale fighter jets may move closer to execution by March 2027, subject to approval by the Defence Acquisition Council, chaired by Defence Minister Rajnath Singh.
In addition, a strategic collaboration between France’s Safran and India’s Defence Research and Development Organisation (DRDO) for the development of indigenous aircraft engines is expected to advance. The project, estimated at €3 billion, is likely to be placed before the Cabinet Committee on Security (CCS) for approval.
Comparison with Last Year
In the previous Union Budget, defence spending stood at ₹6.81 trillion, reflecting an increase of less than 10 percent year-on-year. Capital expenditure accounted for over 26 percent of the total, at approximately ₹1.8 trillion. Sources suggest that both figures will be significantly surpassed in Budget 2026.
A Strategic Signal
The anticipated surge in defence spending is widely seen as a clear strategic message—both domestically and internationally—that India is committed to enhancing its military readiness, accelerating modernisation, and responding firmly to evolving security challenges.
As Finance Minister prepares to open the budget briefcase on February 1, all eyes will be on whether the government indeed “opens the treasury” for the armed forces and sets new benchmarks in defence expenditure.
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