India Defence Budget 2026: Fighting between Russia and Ukraine continues without a clear end. At the same time, relations between the US and Venezuela have turned very tense. US President Donald Trump has also taken a hard stand on places like Greenland and Iran. All these events together have made the world feel more unsafe.
In the US, President Trump has proposed a huge jump in military spending. He wants the defence budget to reach $1.5 trillion in 2027. This would be a 50% increase from what was planned earlier.
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China worries
The US military attacked Venezuela and captured its President Nicolas Maduro and his wife Cilia Flores. After this, some people feared that China might take advantage of global confusion and push Taiwan into a difficult position.
Manoranjan Sharma, Chief Economist at Infomerics Ratings, explained China’s thinking very clearly. “China does not view Taiwan through the prism of U.S. behaviour in Latin America. Taiwan is a core sovereignty issue for Beijing, and Chinese decision-making is driven primarily by the regional military balance, the credibility of U.S. alliances, and domestic political considerations,” said Manoranjan Sharma, Chief Economist at Infomerics Ratings.
According to him, tough steps by Washington can send a message that the US will act fast when it feels its interests are at risk. But he added that China watches Asia more closely. “China is far more influenced by U.S. military posture in the Indo-Pacific, trilateral coordination among the U.S., Japan, and the Philippines, and Taiwan’s own defence preparedness than by events elsewhere.”
He said China’s pressure near Arunachal Pradesh is not new. “In the context of Arunachal Pradesh is long-standing. Beijing calibrates pressure on India based on India–U.S. strategic proximity, India’s military preparedness along the Line of Actual Control (LAC), and internal stability in Tibet. These actions are calculated and strategic, not reactive in a linear or symbolic sense,” said Sharma.
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Will India spend more on Defence in Budget 2026?
Many experts feel India will raise defence spending in the next budget. The reasons include rising global danger, China building its military very fast, and India’s strong focus on making weapons at home. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, sounded confident. “Higher allocation for defence in the 2026 Budget is certain,” he said.
Last year India set aside more than ₹6.8 lakh crore for defence in FY2025-26. Out of this, around ₹1.8 lakh crore went for modernising the armed forces. This year, experts believe the number will go up even more.
Sharma said India has already been slowly increasing defence spending for years because the world feels less stable. He explained that India follows a clear long-term plan. The focus stays on China as the main challenge. India also prepares for a possible two-front situation with China and Pakistan. Making weapons in India under “Make in India” and “Atmanirbhar Bharat” stays very important.
