India Allocates Record Rs 6.81 Lakh Cr For Defence In FY25-26
According to the official figures, the largest share of the budget—45.76 per cent or Rs 3.11 lakh crore—has been allocated for revenue expenditure to meet the operational requirements of the armed forces
According to the official figures released by the Ministry of Defence, the largest share of the budget—45.76 per cent or Rs 3.11 lakh crore—has been allocated for revenue expenditure to meet the operational requirements of the armed forces. Capital outlay, which funds the acquisition of new equipment, weapons, and infrastructure development, stands at Rs 1.8 lakh crore, constituting 26.43 per cent of the total allocation.
Defence pensions account for Rs 1.6 lakh crore (23.60 per cent), ensuring financial security for retired military personnel. Meanwhile, Rs 28,682.97 crore (4.21 per cent) has been earmarked for civil organisations operating under the Ministry of Defence.
DRDO Budget Increased By 12.41 Per Cent
The government has also increased the budget allocation for the Defence Research and Development Organisation (DRDO) for the financial year 2025-26, underscoring a renewed emphasis on indigenous military research and innovation.
According to official figures, DRDO has been allocated Rs 26,816.82 crore for FY 2025-26, marking a 12.41 per cent increase from the Rs 23,855.61 crore allotted in the previous financial year. This increase highlights India's commitment to strengthening its defence technology base and promoting self-reliance under the Atmanirbhar Bharat initiative.
A major portion of this budget—Rs 14,923.82 crore—has been earmarked for capital expenditure, which will support cutting-edge research and development projects, procurement of advanced defence technologies, and the modernisation of DRDO facilities.
The enhanced allocation is expected to boost ongoing and future defence projects, including missile systems, fighter aircraft, AI-driven warfare capabilities, and next-generation military platforms. This move aligns with India's broader strategy to reduce dependence on foreign defence imports and enhance indigenous capabilities in critical defence technologies.
Source:
https://www.businessworld.in/articl...-rs-681-lakh-cr-for-defence-in-fy25-26-546968