Budget 2026 Signals War-Readiness with Modern Indian Military
Union Minister for Finance Nirmala Sitharaman in the Lok Sabha on Sunday (Image Sansad TV)
A sharp rise in defence outlay, AI-led reforms and strategic autonomy mark a decisive shift from preparedness to power projection.
By NIRENDRA DEV
New Delhi, February 1, 2026 — Budget 2026, anchored by Finance Minister Nirmala Sitharaman—a former Defence Minister herself—marks a clear inflection point in India’s strategic posture. The Budget 2026 defence push reflects a transition from incremental preparedness to sustained military strengthening, driven by hard geopolitical realities and New Delhi’s ambition for long-term deterrence.
The government has earmarked ₹7,84,678 crore as total defence outlay for 2026–27, up from ₹6,81,210 crore last year—an increase of over ₹1 lakh crore. Defence spending now stands at nearly ₹5.95 trillion, rising around 19% year-on-year from FY26 estimates. Over the past decade, India’s defence budget has almost doubled, underlining a structural shift towards operational capability rather than merely meeting recurring costs.
While Operation Sindoor underscored India’s willingness to act decisively, the broader message of the Budget is strategic continuity. From Pakistan to Bangladesh and Myanmar, and amid evolving equations with China and the US, New Delhi is investing in deterrence, not reaction. Higher capital outlay, prioritisation of high-value platforms and easing customs duties for defence manufacturing signal a strong push for indigenisation and autonomy.
Beyond hard power, the Budget integrates technology and talent. AI and digital innovation are positioned as enablers—not only for defence but also for agriculture through initiatives like Bharat Vistaar, which promises climate-smart, data-driven support for farmers. Sitharaman also placed a spotlight on the “orange economy,” backing AVGC sectors with creator labs in 15,000 schools and 500 colleges to build future-ready jobs.
Despite global headwinds—including US tariffs—the Budget balances growth with fiscal restraint, targeting a lower deficit. If growth is the theme, power—military, technological and creative—is the subtext. Budget 2026 makes clear: India is preparing not just to grow, but to secure that growth.
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