In pursuance of Prime Minister Shri Narendra Modi-led Government’s vision of ‘Viksit Bharat @ 2047’ with technologically-advanced and ‘Aatmanirbhar’ Armed Forces, Union Budget of India has made a provision of Rs 6,81,210.27 crore for Financial Year (FY) 2025-26 for the Ministry of Defence (MoD).
Defence Budget of India FY 2025-26
In alignment with Prime Minister Narendra Modi’s vision of a ‘Viksit Bharat @ 2047’ and fostering a technologically advanced and self-reliant (‘Aatmanirbhar’) military, the Union Budget 2025-26 has allocated ₹6,81,210.27 crore for the Ministry of Defence (MoD). This allocation, accounting for 13.45% of the Union Budget, marks a 9.53% increase from the previous fiscal year, emphasizing the government’s commitment to strengthening India’s defense capabilities.
Capital Outlay and Modernization
- A significant portion of the budget, ₹1,80,000 crore (26.43%), is earmarked for capital outlay, focusing on modernization and infrastructural development. This includes ₹1,48,722.80 crore for capital acquisitions, such as advanced aircraft and next-generation submarines, and ₹31,277.20 crore for R&D and infrastructure. The budget prioritizes domestic procurement, with ₹1,11,544.83 crore (75% of the modernization budget) allocated for indigenous purchases, fostering self-reliance and boosting local industries.
Operational Readiness and Revenue Allocation
- The budget allocates ₹3,11,732.30 crore for operational readiness and maintenance of the Armed Forces, a 10.24% increase from FY 2024-25. This fund supports pay and allowances, as well as essential supplies like fuel, ordnance, and equipment maintenance. An additional ₹1,97,317.30 crore is reserved for personnel expenses, ensuring the welfare and preparedness of the forces.
Boosting Defence Research and Development
- The Defence Research and Development Organisation (DRDO) receives a 12.41% budget increase, totaling ₹26,816.82 crore. This allocation aims to enhance fundamental research and collaborations with private industries, driving innovation in emerging technologies such as AI, robotics, and cybersecurity.
Encouraging Private Sector Innovation
- To promote self-reliance in defense technology, ₹449.62 crore is allocated to the Innovations for Defence Excellence (iDEX) scheme. This initiative supports startups and private enterprises in developing cutting-edge solutions, strengthening India’s defense ecosystem.
Welfare of Veterans and Defence Pension
- Acknowledging the sacrifices of veterans, ₹1,60,795 crore is allocated for defense pensions, covering approximately 34 lakh pensioners. The budget also allocates ₹8,317 crore for the Ex-Servicemen Contributory Health Scheme (ECHS), ensuring superior healthcare for veterans and their families.
Strengthening the Indian Coast Guard
- The Indian Coast Guard (ICG) sees a substantial budget increase of 26.50%, amounting to ₹9,676.70 crore. The capital budget of ₹5,000 crore, a 43% rise from the previous year, enables the acquisition of Advanced Light Helicopters, Dornier Aircraft, and Fast Patrol Vessels, enhancing coastal security and emergency response.
Enhancing Border Infrastructure
- With ₹7,146.50 crore allocated to the Border Roads Organisation (BRO), the budget supports infrastructure projects like tunnels, bridges, and strategic roads in critical regions such as Arunachal Pradesh and Jammu & Kashmir. These developments not only bolster national security but also promote economic growth and employment opportunities in border areas.
Conclusion
- The Union Budget 2025-26 demonstrates India’s resolve to advance its defense capabilities while promoting self-reliance and modernization. Through strategic investments in technology, infrastructure, and welfare, the budget reinforces India’s preparedness to tackle emerging security challenges and contribute to the nation’s growth and development.
