India's defense budget hits all-time high, focuses on homegrown tech
India just set aside a record ₹6.81 lakh crore for defense in the 2025-26 Union Budget—up 9.53% from last year and the biggest chunk among all ministries.
A significant part of this will go toward upgrading equipment and boosting capabilities across land, sea, air, cyber, and space.
Why it matters
Three-fourths of the modernisation budget is earmarked for Indian-made gear under the Aatmanirbhar Bharat push—meaning more jobs and less reliance on imports.
The Defense Research and Development Organization (DRDO) also got a funding boost to work on next-gen tech such as AI and other emerging technologies.
While India's focus on capital expenditure is slightly behind countries like the US or UK/EU, this budget shows a clear commitment to modernizing forces with homegrown innovation and supporting private sector growth in defense manufacturing.