By Gautam Debroy
New Delhi:India’s defence budget on Saturday witnessed a sharp increase of Rs 59,269.42 crore for the financial year 2025-26 as Finance Minister Nirmala Sitaraman tabled her budget for the eighth consecutive term in the Parliament.
Of the total budget of Rs 681210.27 crore in 2025-26, Rs 28682.97 crore has been allocated for the Ministry of Defence (Civil), Rs 311732.30 crore allocated for Defence Services (Revenue), Rs 180000.00 crore allocated for Capital Outlay on Defence Services and Rs 160795.00 allocated for Defence Pensions. The total budget outlay for the year 2024-25 was Rs 621940.85 crore.
"The defence budget is presented against the backdrop of growing challenges along India's eastern and western frontier. As neighbouring China continues to advance their military capabilities along India's border, including enhancements in air power and naval fleets, it was necessary to allocate the maximum budget for India's defence," said defence expert Brigadier (Retd) BK Khanna ETV Bharat.
For Jammu and Kashmir Light Infantry, the budget allocation has been increased to Rs 2074.03 crore in 2025-26 from Rs 1936.24 crore in 2024-25. Allocation for the Indian Coast Guard has also been increased from Rs 7651.80 crore to Rs 9676.70 crore.
"Increase in specific components like the Jammu and Kashmir Light Infantry as well as Indian Coast Guard shows India's strategy to handle all forms of challenges from its enemies," said Brigadier (Retd) Khanna.
Investment in several defence public enterprises have also been increased in the budget for 2025-26. Public enterprises like Hindustan Shipyard Limited, BEML Limited, Bharat Electronics Limited, Bharat Dynamics Limited, Mazagon Dock Shipbuilders Limited, Mishra Dhatu Nigam Limited, Goa Shipyard Limited, Garden Reach Shipbuilders and Engineers Ltd as well as Hindustan Aeronautics Limited witnessed budgetary allocation of Rs 4064.01 crore in 2025-26 from Rs 3254.32 crore.
