In New Delhi, on February 1, Defence Minister Rajnath Singh expressed his appreciation for the Union Budget 2026, particularly thanking Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for assigning Rs 7.8 lakh crore to the defence sector.

He stated that following India's notable achievement in Operation Sindoor, this budget has reinforced the Central government's commitment to enhance the nation's defence capabilities.

Finance Minister Nirmala Sitharaman revealed a 15 percent increase from the previous year's allocation of Rs 6.81 lakh crore in the defence budget for 2026-27.

A total of Rs 2.19 lakh crore has been designated for military hardware purchases, which is a substantial 21.8 percent increase compared to Rs 1.80 lakh crore from FY 2025-26.

In a video message, Singh remarked, "This budget aligns with the hopes and aspirations of the populace. Additionally, it solidifies the Prime Minister's vision for an Aatmanirbhar and Viksit Bharat 2047, with comprehensive plans for societal development across all sectors."

Expressing his deep appreciation for the Rs 7.85 lakh crore allocation, Singh stated, "In light of the recent success of Operation Sindoor, this budget further strengthens our determination to enhance the country's security framework. This increment surpasses 15 percent compared to last year, ensuring that the Ministry of Defence receives the largest share of the Union Budget once again."

Singh pointed out that this year, Rs 2.19 lakh crore is allocated for the overall capital expenditure of the Indian Armed Forces, emphasizing that the budget's primary focus is on the modernization of the tri-services, with Rs 1.85 lakh crore set aside for this purpose, reflecting a 24 percent increase from the previous year.

He asserted that these advancements would make India's military capabilities "even more robust."

Furthermore, Singh highlighted that the welfare of retired soldiers and their families is also prioritized in this budget.

"An allocation of Rs 12,100 crore under the Ex-servicemen Contributory Health Scheme marks a significant 45 percent increase from the current year," he mentioned.

"Overall, this budget enhances the equilibrium between security, development, and self-reliance. I extend my congratulations to the citizens of India regarding this budget," added the Defence Minister.

This increased allocation occurs in the context of Operation Sindoor and the evolving geopolitical dynamics.

Finance Minister Sitharaman also proposed eliminating basic customs duties on raw materials imported for aircraft parts used in maintenance, repair, or overhaul, benefiting the defence sector.

The budget continues a strategic trend towards prioritizing investments in force modernization, air defence systems, and next-generation platforms.

The increased capital expenditure is driven by enhanced allocations for fighter jets, warships, missiles, artillery systems, and other advanced defence technologies.

This larger allocation for defence procurement is anticipated to benefit both public sector undertakings and private-sector suppliers, particularly as order volumes in the sector have risen sharply.