India defence budget in FY26: India will see another big moment for defence this weekend when the first BrahMos missiles made in Lucknow will be given to the armed forces. The handover will take place on Saturday, marking a huge step for India’s “Make in India” goal in defence. But this week also brings another big news. The government plans to give more money to the defence sector this financial year to push modern weapon production and support major projects.
More Funds for Defence Projects
Sources told ET NOW that the government is preparing to increase money for defence in the current year (FY 2025-26). They said that around Rs 40,000 to Rs 45,000 crore may be added to the capital budget. This extra money will help in paying for large defence projects that need fast progress. The Ministry of Defence has already sent a proposal to the Ministry of Finance after checking all capital spending. The plan asks for more funds to speed up buying new and modern defence equipment that the armed forces need right now.
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One official source said, “Procurement of high-end defence equipment to be expedited to meet operational needs.” This means the government wants to make sure all important equipment comes fast and in enough numbers so that the military can handle any challenge quickly.
More Indian-Made Weapons
Reports also say that the government wants to spend more on Indian-made defence products instead of buying from other countries. The local defence buying may rise above Rs 1.12 lakh crore this year, showing the strong push towards self-reliance. More money will likely come through “supplementary demands for grants” which the government plans to place in Parliament during the Winter Session. Sources said the government will seek Parliament’s approval for this next month.
The focus is not only on spending extra but also on spending in the right way. Sources said the aim is to make sure the money helps India’s defence industry grow stronger. The Modi government has always put top priority on getting modern weapons and building India’s own defence factories.
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In the Union Budget for FY 2026, the Ministry of Defence got Rs 6.81 lakh crore. Out of this, Rs 1.80 lakh crore was already set for capital use which covers big projects like new missile systems, aircraft, and tanks.
