Army Chief Confirms Rs 50,000 Crore Capital Spend In 2025-26; No Fund Shortage |

Updated: January 14, 2026 20:01

Image Source: The Economic Times

Army Chief General Upendra Dwivedi announced that the Indian Army is set to spend Rs 50,000 crore on capital acquisitions in FY 2025-26, exceeding its budgeted allocation. He emphasized there is no shortage of funds, with the government committed to supporting modernization and capability enhancement across key operational areas.

In a strong statement of intent, Chief of Army Staff General Upendra Dwivedi confirmed that the Indian Army will spend nearly Rs 50,000 crore on capital acquisitions during the current financial year. Speaking at the Annual Army Day press conference, General Dwivedi highlighted that the Army is on track to exceed its allocated capital budget, thanks to faster procurement processes and a clear focus on modernization.

Key highlights from his address indicate that the capital expenditure is being directed toward acquiring new-generation weapon systems, surveillance platforms, and communication equipment. The Army is also investing in infrastructure development along the northern borders and enhancing mobility and firepower in sensitive regions.

General Dwivedi emphasized that there is no shortage of funds, and the government has assured additional financial support if required. This marks a significant shift from earlier years when procurement delays and budgetary constraints often hampered modernization efforts. The Army Chief credited this momentum to streamlined decision-making and a proactive approach to capability enhancement.

Another important takeaway is the growing role of the private sector in defense procurement. A substantial portion of the capital spend is being routed through Indian private defense manufacturers, aligning with the government’s Atmanirbhar Bharat initiative. This not only boosts indigenous defense production but also strengthens the domestic defense industrial base.

General Dwivedi also touched upon the Army’s broader modernization roadmap, which includes the induction of advanced artillery systems, drones, and electronic warfare capabilities. He reiterated the Army’s commitment to operational readiness, especially in light of evolving threats along the Line of Actual Control (LAC) and in other strategic theaters.

The Army Chief’s remarks come ahead of the Union Budget 2026, where defense allocations are expected to be closely watched. With a clear focus on modernization and self-reliance, the Indian Army appears poised to maintain its upward trajectory in defense preparedness.

Sources: The Economic Times, The Hindu Business Line, ANI, SP’s Land Forces, World News Network

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