Defence in Union Budget 2026–27

The Union Budget 2026–27, announced on February 1, 2026, prioritizes national security with a historic allocation of ₹7.85 lakh crore for the Ministry of Defence, marking a 15.19% increase from the previous year. This budget reflects a commitment to modernization, self-reliance, and innovation in India's defence sector. Last Updated: 2026-02-06

Key Facts About Defence in Union Budget 2026–27

• Highest-ever allocation of ₹7.85 lakh crore for Defence in 2026-27.
• Increase of 15.19% over FY 2025–26 Budgetary Estimates.
• Defence budget rose from ₹2.53 lakh crore in 2013–14 to ₹7.85 lakh crore.
• Distribution: 27.95% for capital expenditure.
• 20.17% for revenue expenditure on sustenance.
• 26.40% for pay and allowances.
• 21.84% for defence pensions.
• 3.64% for civil organizations.
• Emphasis on modernizing all three services.
• Focus on indigenous manufacturing under Aatmanirbhar Bharat.
• Increased allocation for DRDO to ₹29,100.25 crore.
• Major share of ₹17,250.25 crore for capital expenditure.
• Commitment to veterans’ welfare through higher healthcare and pension allocations.
• Targets a secure and resilient India aligned with Viksit Bharat @ 2047.
• Significant focus on research and development in defence manufacturing.
• Budget reflects a sustained focus on national security.

India's Defence Modernization and Self-Reliance

The Union Budget 2026–27 underscores India's strategic goal of becoming a global defence powerhouse by enhancing its military capabilities and achieving self-reliance. The increased budget allocation aligns with India's vision of Viksit Bharat @ 2047, aiming for a secure and resilient nation. The focus on indigenous manufacturing and R&D positions India competitively on the global stage, ensuring robust economic growth and strategic autonomy.

Related Government Schemes/Policies

• Aatmanirbhar Bharat: Promotes self-reliance in defence manufacturing.
• Make in India: Encourages indigenous production of defence equipment.
• Defence Production and Export Promotion Policy (DPEPP) 2020: Aims to achieve a turnover of ₹1.75 lakh crore by 2025.

UPSC Relevance

• GS Paper 2: Governance, Constitution, Polity, Social Justice and International relations - Government policies and interventions for development in various sectors.
• GS Paper 3: Technology, Economic Development, Bio-diversity, Environment, Security and Disaster Management - Security challenges and their management in border areas.
• Prelims: Questions on budget allocations, defence policies, and key schemes like Aatmanirbhar Bharat.
• Mains: Essays on national security, self-reliance in defence, and India's strategic autonomy.

FAQ Section

• What is the Defence allocation in the Union Budget 2026–27? The Defence allocation is the highest-ever at ₹7.85 lakh crore, marking a 15.19% increase from the previous year.
• Why is the Defence budget important? It is crucial for modernizing India's military, ensuring self-reliance in defence manufacturing, and enhancing national security.
• What are the key features of the Defence budget? Key features include a focus on capital expenditure, increased funding for DRDO, and emphasis on indigenous manufacturing under Aatmanirbhar Bharat.