Indian Armed Forces get Rs 1 lakh crore more, biggest increase in 10 years

A budget of Rs 17,250 crore has been allocated for research and development to increase self-reliance in the defense sector.

Union Budget 2026, Indian Armed Forces, Indian Army, Indian Navy, Indian Air Force, Nirmala Sitharaman, Pahalgam terrorist attack, Operation Sindoor, Pakistan, Rafale jets, France

New Delhi: Finance Minister Nirmala Sitharaman has made the biggest increase in the defense budget in the last 10 years. She has allocated a total of Rs 7.84 lakh crore for the three armed forces. This is about Rs 1 lakh crore more than in 2025-26, representing a total increase of 15%.

After the Pahalgam terrorist attack on April 22, 2025, India launched Operation Sindoor against Pakistan. According to the government, this operation, which started on May 6, is still ongoing. It is believed that this is the reason for the increase in the defense budget.

Breakdown of defense budget

The budget allocated to the armed forces mainly consists of 4 parts:

Capital Expenditure, i.e., the budget for arms procurement, sees a 22% increase: This time, the three armed forces have received Rs 2.19 lakh crore for capital expenditure, which is 21.84% more than last year. Last year it was Rs 1.80 lakh crore. Most of this budget is used for arms procurement and modernization.

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Revenue expenditure, i.e., salaries, may also increase: This includes the salaries, allowances, and daily operational expenses of the armed forces. This has seen a continuous increase.

Pension budget for retired soldiers: The defense pension budget is a large component, meant for ex-servicemen, and has seen a continuous increase.

Minor reduction in the Civil Defense budget: This includes the civilian administrative expenses of the Ministry of Defence and the expenses of the Coast Guard, which undergo minor changes from time to time.

Impact of Operation Sindoor on the Defense Budget

Defense Minister Rajnath Singh said, “After Operation Sindoor, this budget has been prepared keeping in mind the country’s security needs. This will further strengthen the army’s preparations.”

Rafale deal; New aircraft and engines

The defense budget has focused heavily on fighter jets and aero engines. Rs 63,733 crore has been allocated for this. Meanwhile, Rs 25,024 crore has been allocated for the Navy fleet. According to reports, a deal for 114 Rafale jets is expected between India and France.

Rs 17,000 crore for Research and Development

To increase self-reliance in the defense sector, spending on research and development has also been increased. A budget of Rs 17,250 crore has been allocated for this. This amount will be used to develop new technologies, indigenous weapons, and modern systems. The government wants India not only to buy weapons but also to manufacture them.