Post-Operation Sindoor, India boosts defence spend to Rs 7.85 Lakh Cr

New Delhi: India on Sunday set aside Rs 7,84,678 crore as defence outlay for 2026-27 in a steep hike of 15 per cent over last year’s allocation of Rs 6.81 lakh crore, with its military majorly focusing on boosting combat prowess in the face of increasing security challenges from China and Pakistan.

The increase in the defence outlay, including the budget for capital acquisition, against the backdrop of “historic success of Operation Sindoor” has further strengthened our resolve to make India’s defence system even more robust, Defence Minister Rajnath Singh said. Out of the total allocation, Rs 2,19,306 crore has been earmarked for capital expenditure to the armed forces that largely includes purchasing new weapons, aircraft, warships and other military hardware. The capital outlay is 21.84 per cent more than the budget estimates of 2025-26. Under the capital outlay, Rs 63,733 crore has been set aside for aircraft and aero engines, while Rs 25,023 crore is allocated for the naval fleet.

The total capital outlay is over Rs 39,000 crore higher than the current fiscal’s budgetary estimate Rs 1.80 lakh crore. The revised capital outlay for 2025-26 has been estimated at Rs 1,86,454 crore. According to the defence ministry, Rs 1.39 lakh crore, which is 75 per cent of the capital acquisition budget, has been set aside for procurement through domestic industries during the financial year 2026-27.