Govt Raises Defence Budget to Rs 7.85 Lakh Cr; Targets Rs 3 Lakh Cr Production, Rs 50,000 Cr Exports by 2029: Rajnath Singh

New Delhi, Nov 4 (KNN) India's defence budget for the financial year 2026-27 has been increased to a record Rs 7.85 lakh crore, including a capital outlay of Rs 2.19 lakh crore for modernisation and capital acquisitions, according to Defence Minister Rajnath Singh.

The government aims to increase defence production to Rs 3 lakh crore and defence exports to Rs 50,000 crore by 2029, Singh said.

Chairing a meeting of the Ministry of Defence's Consultative Committee on ‘Modernisation of Indian Defence Forces’ in Jaisalmer, Rajasthan, on Tuesday, Singh highlighted that the increased allocation reflects the government's commitment to strengthening domestic defence manufacturing and meeting the operational requirements of the armed forces, as reported by ANI.

The meeting focused on emerging security challenges, changing warfare scenarios, technological advancements and the need to strengthen the Army's operational capabilities to meet future requirements.

Defence Production and Exports Register Growth

Highlighting progress in defence self-reliance, the Defence Minister said domestic defence production had increased from Rs 46,429 crore in FY 2014-15 to a record Rs 1.78 lakh crore in FY 2025-26. Defence exports have also risen from less than Rs 2,000 crore in 2014 to nearly Rs 40,000 crore. 

Singh also highlighted the role of the Defence Research and Development Organisation (DRDO) in developing advanced weapons, missiles and defence systems. 

He noted that the government was encouraging greater private-sector participation, ranging from micro, small and medium enterprises (MSMEs) to large corporations, as part of a broader effort to strengthen domestic defence capabilities.

Focus on Emerging Defence Technologies

The meeting also examined the growing importance of emerging and disruptive technologies in modern warfare. Discussions covered the adoption of artificial intelligence, autonomous systems, unmanned platforms, cyber and space capabilities, electronic warfare and advanced communication systems.

Singh emphasised that technological advancements are reshaping the nature of conflicts and highlighted the need to develop a technologically capable, modern and operationally agile Army to address future battlefield challenges.

(KNN Bureau)