New Delhi: The Government of India has allocated Rs 7.85 lakh crore to the defence sector in the Union Budget 2026–27.
The Indian Defence Minister, Rajnath Singh, termed the budget as one that strengthens the balance between security, development, and self-reliance. He noted that over Rs 2.19 lakh crore has been allocated under the capital head for the defence forces. Out of this, Rs 1.85 lakh crore has been earmarked for capital acquisition.
“This is approximately 24% higher than the capital acquisition budget for FY 2025–26. This will further enhance India’s military capabilities. Modernisation of the Armed Forces is an important aspect of this budget,” the Defence Minister said.
Reiterating the Government’s commitment to the welfare of veterans and their families, and to providing them with quality healthcare, Rajnath Singh said that Rs 12,100 crore has been allocated to the Ex-Servicemen Contributory Health Scheme. This is 45.49% higher than the Budgetary Estimates for the financial year 2025–26.
He termed it a testimony to the Government’s resolve to improve the welfare of ex-servicemen and their families.
Meanwhile, he said the budget aims to accelerate and sustain economic growth, fulfil the aspirations of the people, and ensure meaningful participation for all.
He further added that together, these priorities will drive inclusive development, promote the manufacturing sector, and create sustainable infrastructure. The budget is designed to ensure that the dividends of growth reach every section of society, with special focus on the poor, the underprivileged, and the disadvantaged.DD