Web Desk

ISLAMABAD: India has announced its largest-ever defense budget, allocating about $85 billion for the coming fiscal year, a 15% increase from last year, as New Delhi moves to accelerate military spending after a brief but intense war with Pakistan that exposed critical shortcomings in its armed forces.&nbsp;The increase comes just months after India and Pakistan fought a four-day conflict in May last year following a militant attack on civilians in Indian-occupied Kashmir. New Delhi blamed the attack on Islamabad, a charge Pakistan firmly rejected, and offered an independent investigation.&nbsp;The fighting, involving missile, drone, and artillery strikes, marked the deadliest cross-border escalation since 2019 and ended only after a US-brokered ceasefire.&nbsp;Presenting the national budget on Sunday, India&rsquo;s finance minister said the government would prioritize infrastructure and defense, including high-speed rail, submarines and fighter jets. Defense received the single largest allocation, $85.6 billion, or 14% of the total Union Budget, according to the defense ministry.&nbsp;Defense Minister Rajnath Singh described the spending as &ldquo;unprecedented,&rdquo; saying it would help equip India&rsquo;s armed forces with &ldquo;fighter jets, drones, ships, submarines and other critical hardware.&rdquo;&nbsp;&ldquo;It is in the best interest of the nation,&rdquo; Singh said.&nbsp;Yet senior defense officials have openly acknowledged that the latest conflict revealed serious weaknesses. Defense Secretary RK Singh said the armed forces had sought a 20% increase in funding due to &ldquo;improved absorption and strategic challenges to fill key capability gaps.&rdquo;&nbsp;&ldquo;We sought a 20% hike based on improved absorption and strategic challenges to fill key capability gaps, and we are delighted that the Finance Ministry has agreed to this unprecedented increase,&rdquo; he told the Indian publication BusinessLine.&nbsp;The admission has sharpened scrutiny of New Delhi&rsquo;s narrative of strength and deterrence. While the government frames the spending surge as modernization, the language used by defense planners suggests a reactive push to address deficiencies laid bare by the May fighting.&nbsp;According to budget data, overall capital expenditure has risen by 21% to about $31.6 billion, with funds directed toward modern equipment and technological upgrades. The capital outlay alone shows a 17.6% increase when the revised estimates for FY26 are compared with the budget estimates for FY27.&nbsp;&ldquo;We will ensure rapid modernization of our armed forces&rsquo; capabilities,&rdquo; the defense secretary said.&nbsp;India is already negotiating major defense contracts with both domestic and international suppliers, including France, the United States, and Germany. The planned acquisitions include fighter jets, submarines, drones, and precision-guided munitions, systems that featured prominently in the May conflict.&nbsp;The timing of the budget also reflects mounting external pressures. It is the first budget since US President Donald Trump imposed 50% tariffs on most Indian imports in August. While New Delhi and Washington are negotiating a long-delayed trade agreement, relations have been strained by India&rsquo;s continued purchases of Russian oil, which the US says help finance Moscow&rsquo;s war in Ukraine.&nbsp;For international observers, the scale and urgency of India&rsquo;s defense spending raise questions about strategic confidence. Rather than signaling dominance, the budget underscores how quickly New Delhi moved to rearm after a short war that tested its readiness and exposed limitations in stockpiles, technology, and operational preparedness.&nbsp;Despite the record figures, the armed forces did not receive the full increase they initially sought. That shortfall, combined with public acknowledgements of &ldquo;key capability gaps&rdquo;, has fueled debate over whether the spending spree reflects long-term planning or an expensive effort to recover credibility after a conflict that challenged India&rsquo;s assumptions about its own military power.

India

India unveiled a record $85 billion defense budget, boosting military spending after a brief Pakistan conflict exposed capability gaps, driving accelerated modernization and major weapons acquisitions

Articles tagged with "India $85 billion"

India announces record defense budget after Pakistan war exposed gaps

India announces record defense budget after Pakistan war exposed gaps