Defence Minister Rajnath Singh on 3 November 2026 announced that India's total defence budget for financial year 2026-27 has risen to ₹7.85 lakh crore, with a dedicated capital outlay of ₹2.19 lakh crore set aside for modernisation and capital procurement. Singh made the disclosure while addressing a session of the Parliamentary Consultative Committee in Jaisalmer, Rajasthan, underscoring the government's commitment to transforming the armed forces to meet evolving security challenges.

What the Defence Budget Covers

The minister outlined three strategic pillars driving the modernisation push: increased budgetary allocation and capital acquisition, technological advancement, and human resource development. Singh emphasised that funds were not only being allocated but were being fully utilised, noting that the armed forces maintain a priority list to ensure efficient deployment of resources.

'The armies also understand very well that the government is committed to their needs. They put very important things in a priority list and utilise the budget well,' Singh said.

Defence Production and Exports: The Self-Reliance Story

Singh highlighted India's rapid strides in defence manufacturing. Domestic defence production, which stood at approximately ₹46,429 crore in 2014-15, has surged to around ₹1.78 lakh crore in 2025-26 — a near four-fold increase in just over a decade. Defence exports, which were below ₹2,000 crore in 2014, have now climbed to approximately ₹40,000 crore.

The government has set ambitious targets: defence production to reach ₹3 lakh crore and defence exports to touch ₹50,000 crore by 2029. Singh expressed confidence that export figures would in fact exceed the stated target.

Technology, DRDO, and Private Sector Push

The minister stressed that modern warfare is increasingly being shaped by technologies such as drones, missiles, and air defence systems. He pointed to the ongoing conflicts between Russia and Ukraine and Israel and Iran as evidence of how the nature of warfare is changing, and said India's forces must prepare accordingly.

The Defence Research and Development Organisation (DRDO) is actively developing new weapons systems and missiles, he said. Alongside state-led R&D, the government is extending a level playing field to private sector entities — from MSMEs to large industrial players — encouraging broader participation in India's defence ecosystem. Notably, new Army platforms including 'Ashni', 'Bhairon', and 'Shaktibaan' were cited as examples of formations addressing operational requirements.

Strategic Autonomy and Human Resource Development

Singh underlined that modernisation goes beyond procuring advanced equipment — it encompasses strengthening operational readiness and developing skilled personnel. All three services, he said, are undertaking structural and organisational reforms aligned with the demands of contemporary warfare.

The overarching objective, he said, is to build an indigenous defence ecosystem that reduces India's strategic dependence on foreign suppliers and reinforces the country's strategic autonomy.

The Jaisalmer Meeting

The Parliamentary Consultative Committee gathering in Jaisalmer was followed by a detailed presentation on armed forces modernisation. Singh said the border-region venue was deliberate — allowing members to connect with ground realities in frontier and farming areas. He assured lawmakers that recommendations emerging from such meetings are formally considered by the ministry. With targets set for 2029 and a defence production ecosystem rapidly taking shape, the next milestone will be whether export growth can keep pace with the minister's projections.