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Defence earns big allocation in Budget after Op Sindoor; Rajnath Singh says it ‘lives up to sentiments of people'
The Budget allocated a total of ₹7.8 lakh crore to the defence ministry for 2026-27. Of this, a capital allocation of ₹5.95 lakh crore has been set aside.
Defence minister Rajnath Singh on Sunday hailed the Union Budget 2026-27 presented by finance minister Nirmala Sitharaman and said that it reinforces “resolve to further strengthen the country's defence system” after the Centre proposed a massive defence budget of ₹7,84,678 crore for FY 2026-27.
The allocation for this financial year is a notable increase from last year's allocation of ₹6,81,210 crore and comes months after India’s Operation Sindoor, a joint-military operation targeting terror camps inside Pakistan and Pakistan-occupied Kashmir (PoK). Follow live updates here.
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Sitharaman presented her ninth consecutive budget on Sunday, proposing a wave of reforms aimed at boosting spending in manufacturing and infrastructure.
Rajnath Singh on Union Budget 2026-27
The Union minister said that the budget “lives up to the sentiments and expectations of the people”. He also said that it “provides a strong foundation for PM Modi's vision of a self-reliant India and a developed India by 2047”.
Reacting to the massive allocation for the defence ministry, he told news agency ANI that it “strengthens the balance between security, development, and self-reliance”.
“This budget allocates ₹7.85 lakh crore for the defence sector... This budget, following the historic success of Operation Sindoor, has reinforced our resolve to further strengthen the country's defence system,” he told the news agency.
He added, “This year, a provision of ₹2.19 lakh crore has been made for the overall capital expenditure of our armed forces, and the key focus of this budget is the modernisation of our three armed forces.”
Massive defence allocation in Union Budget 2026-27
The Budget has allocated a total of ₹7.8 lakh crore to the defence ministry for 2026-27. Of this, a capital allocation of ₹5.95 lakh crore has been set aside, up from last year’s figure of ₹4.92 lakh crore.
While the overall capital spending has increased by about 22% compared to the previous year, the funds set aside specifically for modernisation have risen by 24%.
Sources told HT the ministry had sought a 20% rise, with the added funding aimed at strengthening long-range strike capabilities, military aircraft, missiles and armed drones following Operation Sindoor.
Officials in the defence ministry believe the higher allocation will support efforts to upgrade the armed forces and their equipment. Projects related to Rafale fighter aircraft, submarines and unmanned aerial vehicles are in the works, the sources added.
Sitharaman said, “It is proposed to exempt basic customs duty on raw materials imported for the manufacture of parts of aircraft to be used in maintenance, repair or overall requirements by units in the defence sector.”
