India has raised its capital spending on defence services to ₹219306.47 crore in the Union Budget 2026-27, up from the revised ₹186454.20 crore for 2025-26.
The increase comes as several countries continue to upgrade their military capabilities amid a shifting global security landscape, and reflects India’s steady approach to strengthening its own combat preparedness.
Capital expenditure, usually meant for acquiring new platforms, weapons, and critical infrastructure, is often viewed as the foundation of long-term military strength.
Among the major spending heads, “Other Equipments” has been allocated ₹82217.82 crore, making it the largest component of defence capital expenditure.
Aircraft and aero engines follow with ₹63733.94 crore, while ₹25023.63 crore has been set aside for the naval fleet.
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Together, these segments form a large share of the capital budget.
The allocation for Defence Research and Development has been increased to ₹17250.25 crore, continuing the government’s push to develop indigenous technologies and strengthen domestic defence capabilities under its ‘Make In India’ and ‘Atmanirbhar Bharat’ push.
Several operational areas have also received funding.
Heavy and medium vehicles have been allocated ₹4580.16 crore, joint staff ₹3138.72 crore, and special projects ₹1989.12 crore.
Land acquisition stands at ₹1237.91 crore, reflecting ongoing requirements linked to defence infrastructure.
Further, construction works account for ₹11752.10 crore.
Technology development assistance for prototype projects under the “Make” procedure has been pegged at ₹1707.81 crore, signalling continued support for domestic innovation and manufacturing.
Procurement of rolling stock has been allocated ₹450.00 crore, while the Rashtriya Rifles and the National Cadet Corps have received ₹255.00 crore and ₹20.00 crore respectively.
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