Finance Minister Nirmala Sitharaman approved a 15% rise in the defence budget for 2026-27, giving Rs 7.8 lakh crore, up from Rs 6.81 lakh crore.
The military hardware portion of the capital expenditure is Rs 2.19 lakh crore, a 21.8% increase over the previous year.
This budget represents a deliberate change towards modernisation, emphasising indigenous research and self-reliance within a shifting geopolitical climate, notably during Operation Sindoor.
The defence industry would gain from the Finance Minister’s proposal to waive customs duties on raw materials used in aircraft maintenance. Rajnath Singh, the minister of defence, stressed the importance of strengthening the nation’s defence capabilities.
Key beneficiaries include Hindustan Aeronautics Ltd, Mazagon Dock Shipbuilders, Bharat Electronics Ltd, and many private sector enterprises involved in drones and defence production.
