India's Defence Budget Soars to ₹6.81 Lakh Crore: A 9.5% Boost for Modernization and Self-Reliance

Defence Secretary Rajesh Kumar Singh announced a significant 9.5% increase in India's defence budget for 2025-26, reaching ₹6.81 lakh crore (USD 78.3 billion). This boost aims to modernize the armed forces and enhance indigenous defence production. The budget allocates 26.4% for new acquisitions, with 75% earmarked for domestic procurement, aligning with the 'Atmanirbhar Bharat' initiative. Singh emphasized the ministry's focus on cutting-edge technologies like AI and cybersecurity. Despite the increase, challenges remain as 23.6% of the budget goes towards pensions. The government has declared 2025 as the 'Year of Reforms' to transform the armed forces into a technologically-advanced, combat-ready force.

 

Sources: Delhi Policy Group, DSEI Japan, EY India