India Unveils 15% Defence Budget Hike After Last Year’s Conflict

News Desk

Islamabad: India on Sunday announced a sharp increase in defence spending in its federal budget for the 2026 fiscal year, signalling a renewed focus on military preparedness and modernisation following last year’s brief conflict with Pakistan.

Presenting the annual budget, Finance Minister Nirmala Sitharaman allocated Rs7.85 trillion for defence, marking an increase of nearly 15 per cent from last year’s Rs6.81 trillion. 

The hike comes months after India suffered a major setback during Operation Sindoor in May 2025.

A significant portion of the additional funding has been earmarked for long-term defence investment. Capital expenditure rose by 28 per cent to Rs2.31 trillion, up from Rs1.8 trillion last year, reflecting an emphasis on upgrading military hardware and boosting the domestic defence industry.

Sitharaman said Rs2.19 trillion had been set aside specifically for military modernisation, a year-on-year increase of 21.84 per cent. Spending on routine military requirements — including fuel, ammunition, maintenance and personnel salaries — has also increased by 17.24 per cent.

Allocations for military pensions were raised to Rs1.71 trillion, further contributing to the overall rise in defence expenditure.

Analysts said the increase was largely expected, noting that defence officials had pushed for a substantial hike in the wake of Operation Sindoor. In May last year, the government had considered an additional Rs500 billion in defence spending, though the final allocation exceeded those earlier projections.

India’s defence budget for the previous fiscal year had already seen a 9.2 per cent increase compared with 2024, underlining a continued upward trend in military spending amid heightened regional security concerns.