New Delhi:
India is currently celebrating the success of Operation Sindoor. Following this, the Indian government has announced a major shift in its security stance—any cross-border terrorist activity will now be considered an act of war. In light of this, the government is now planning a significant increase in its defence budget.
According to sources, there is a proposal to allocate an additional ₹50,000 crore through a supplementary budget. This extra allocation will cater to the needs of the armed forces, crucial procurements, and research and development in defence technology.
Earlier in February, the Indian government presented a defence budget of ₹6.81 lakh crore (approx. USD 81.7 billion). Data shows that since Prime Minister Narendra Modi took office in 2014, India’s defence spending has seen a record increase. In 2014-15, the defence budget stood at ₹2.29 lakh crore. For the fiscal year 2025-26, this amount has been tripled to ₹6.81 lakh crore. This accounts for 13.45% of the total national budget for the year. Among all sectors, defence continues to receive the largest allocation from the Modi government.
China:
China’s defence budget for 2025 is estimated at around USD 230 billion (approx. ₹18-19 lakh crore), making it the second-largest in the world after the United States. However, India is steadily closing the gap with targeted investments and strategic partnerships.
Pakistan:
Pakistan’s defence budget remains significantly lower in comparison, standing at around USD 10.3 billion (approx. ₹85,000 crore). India’s defence spending is thus nearly eight times that of Pakistan.
United States:
The U.S. continues to top the global chart with a massive defence budget of over USD 850 billion (approx. ₹70 lakh crore). While India is far behind in absolute numbers, it has focused on indigenous defence production and strategic deterrence capabilities.
India’s defence budget is primarily divided into three components:
Revenue Expenditure: Salaries, pensions, and maintenance of forces.
Capital Expenditure: New weapons, aircraft, warships, tanks, and technological upgrades.
Research & Development: Investments in organisations like DRDO for indigenous weapon systems.
With the rise in global tensions and India's new security doctrine post-Operation Sindoor, the enhanced budget is aimed at modernising the armed forces and preparing for multi-dimensional threats, especially from Pakistan and China.
Bottom Line:
India is significantly ahead of Pakistan in terms of defence expenditure and is making calculated strides to keep up with China. The proposed budget hike further reinforces India’s intent to safeguard its borders and maintain regional stability.
