India to increase defence budget by 20%:Targets 2.5% of GDP in next five years to boost domestic manufacturing and up-gradation of firepower
New Delhi, July 07, 2025.India is preparing to increase its force on the defence front, aiming to ramp up capital expenditure to 2.5% of GDP by FY2026. This is a massive jump from the current 0.5% capital expenditure and 1.9% total expenses.This isn’t just about bigger budgets—it’s a bold plan to modernise our forces, boost homegrown weapons, and streamline how the military spends its money.India’s defence budget for FY2026 is a whopping ₹6.81 lakh crore, making up 13.45% of the Union Budget. Out of this, ₹1.48 lakh crore is earmarked for capital spending—think shiny new fighter jets, advanced submarines, and cutting-edge technology like AI and robotics.Defence Secretary Rajesh Kumar Singh told CNBC, “We’re aiming for a 20% annual growth in capital spending to hit 2.5% of G...
