India has significantly expanded its defence spending for 2026-27, with the overall budget reaching a record ₹ 7.85 lakh crore. Of this, ₹ 2.19 lakh crore has been earmarked as capital outlay for modernisation and procurement, underlining the government's continued focus on strengthening military capabilities and preparing the armed forces for future security challenges.

Speaking at a meeting of the Consultative Committee on the Modernisation of Indian Defence Forces in Jaisalmer, Defence Minister Rajnath Singh said the enhanced allocation reflects a sustained commitment to equipping the Services with the resources required for contemporary warfare. He noted that modernisation budgets have been increased consistently and effectively utilised to meet operational priorities.

India's drive towards self-reliance in defence manufacturing has also gathered considerable momentum. Domestic defence production has surged from ₹ 46,429 crore in 2014-15 to a record ₹ 1.78 lakh crore in 2025-26, highlighting the rapid expansion of the country's indigenous defence industrial base.

Defence exports have registered equally impressive growth, rising from less than ₹ 2,000 crore in 2014 to around ₹ 40,000 crore. Building on this progress, Rajnath Singh set an ambitious target of achieving ₹ 3 lakh crore in defence production and ₹ 50,000 crore in defence exports by 2029.

“We aim to achieve defence production worth ₹ 3 lakh crore and defence exports worth ₹ 50,000 crore by 2029,” the Defence Minister stated while outlining the government's long-term vision for the sector.

The minister emphasised that strategic autonomy and indigenous technological capabilities remain essential pillars of national security. He highlighted the growing contribution of domestic industry, ranging from MSMEs to large private-sector companies, in supporting the country's defence requirements and reducing dependence on overseas suppliers.

The discussions in Jaisalmer also focused on the rapidly changing character of warfare, shaped increasingly by advanced technologies and emerging security threats. Priority areas identified included artificial intelligence, autonomous and unmanned systems, cyber capabilities, space-based assets and electronic warfare technologies.

A key theme of the deliberations was the need for closer integration among the Army, Navy and Air Force through joint operational planning and synchronised application of capabilities. Policymakers and military officials stressed that future readiness will depend not only on modern platforms and weapon systems but also on seamless coordination across the three Services.

The government's broader modernisation strategy continues to be supported by increased investment in research, advanced military technologies and indigenous manufacturing, positioning India to strengthen both its defence preparedness and its standing in the global defence market.

Agencies