Prime Minister Narendra Modi has emphasised the urgent need for comprehensive modernisation of India's defence sector, stating that the armed forces must be fortified to align with contemporary geopolitical realities.

Speaking in an exclusive interview with PTI on Sunday, he praised the Union Budget 2026 as a forward-looking blueprint that underscores India's transition towards becoming a developed nation.

The Budget reflects a robust commitment to national security, with total defence expenditure surging to ₹7.85 lakh crore for the 2025-26 financial year—a substantial 15% increase from the previous ₹6.81 lakh crore. This escalation signals the government's proactive stance in preparing for an uncertain global landscape marked by evolving threats.

A standout feature is the 28% hike in defence capital expenditure, now at ₹2.31 lakh crore, up from ₹1.80 lakh crore last year. This allocation prioritises the acquisition of cutting-edge weapon systems and bolsters indigenous manufacturing, crucial for self-reliance in defence production.

Modi affirmed that the government stands ready to extend unwavering support to the defence forces, declaring it will "do whatever it takes" to enhance their capabilities. He highlighted modernisation as indispensable amid shifting security challenges, including border tensions and regional instability.

Historical data reinforces this trajectory: total defence spending has ballooned from ₹2.94 lakh crore in 2015-16 to the current ₹7.85 lakh crore. Similarly, capital outlay for modernisation has risen sharply from ₹83,614 crore a decade ago to ₹2.31 lakh crore today, demonstrating sustained fiscal prioritisation.

Recent milestones exemplify this drive, such as January's approval of a ₹3.25 lakh crore deal with France for 114 Rafale fighter jets—one of India's largest-ever combat aircraft procurements. This bolsters the Indian Air Force amid delays in indigenous projects like the TEJAS, enhancing aerial superiority.

Beyond defence, Modi lauded the Budget's broader economic vision, crediting strengthened manufacturing, services, and MSMEs for empowering India to negotiate Free Trade Agreements (FTAs) from a position of strength with 38 countries. These pacts aim to open global markets for sectors like textiles, leather, chemicals, handicrafts, and gems.

He contrasted this with the previous UPA government's tenure, accusing it of economic mismanagement that undermined negotiation leverage. Under UPA, he noted, FTA discussions often stalled without tangible outcomes despite protracted talks.

Reform remains a cornerstone of Modi's administration, with the private sector poised to spearhead the next economic phase. He urged industry leaders to shift focus from margin protection to aggressive investments in research and development, supply chains, and quality enhancement.

Achieving Viksit Bharat—a developed India—hinges on private sector boldness in innovation, capacity building, and global competitiveness, Modi asserted. He stressed that productivity gains from these efforts must be equitably shared with workers to foster inclusive growth.

India's digital prowess, exemplified by the UPI platform, positions it as a global leader, according to the Prime Minister. The government is further nurturing an AI ecosystem through expanded computing power and data centres, which he described as a major job generator for the youth.

Political stability has revived investor confidence, enabling these reforms to take root "in letter and spirit." Modi's vision integrates defence robustness with economic dynamism, positioning India as a resilient power ready for future challenges.

PTI