India boosts defense spending by 15% in new budget
India just set a new record with its 2026-27 defense budget, bumping it up by 15% to ₹7.85 lakh crore.
That's nearly 15% of the country's total spending and about 2% of GDP.
Capital spending—used for things like equipment and upgrades—got a big boost too, rising almost 22% to ₹2.19 lakh crore.
Budget proposes exemption/waiver of basic customs duty on certain parts
This bigger budget means more money for fighter jets, warships, drones, and homegrown tech, plus increased funds for pensions and veteran welfare programs.
The budget proposes exemption/waiver of basic customs duty on components and parts required for manufacture of civilian, training and other aircraft, and on raw materials imported for manufacture of aircraft parts used for maintenance, repair or overhaul by defense sector units—measures described as boosting the defense aerospace industry.
Defense Minister Rajnath Singh praised PM Modi's push for stronger self-reliance in defense, saying these moves help modernize the military while looking out for ex-servicemen with expanded health benefits.