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Union Budget 2026: Defence allocation raised to Rs 7.8 lakh crore
Updated On: 06 February, 2026 05:18 PM IST | New Delhi | mid-day online correspondent
Union Budget 2026 boosts India’s defence spending to Rs 7.8 lakh crore, a 15 per cent jump year-on-year. Capital outlay for military hardware rises 21.8 per cent, with duty waivers on aircraft raw materials to support Aatmanirbhar Bharat
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The increased outlay comes against the backdrop of Operation Sindoor and the changing geopolitical landscape. Representational pic
Finance Minister Nirmala Sitharaman, while presenting Union Budget 2026, announced an allocation of Rs 7.8 lakh crore for the country’s defence sector. This is a 15 per cent increase in the allocation from the Rs 6.81 lakh crore allocated for the sector in financial year (FY) 2025-26.
The defence forces have been allocated Rs 2.19 lakh crore for the purchase of military hardware as part of the capital outlay in the Budget, news agency IANS reported. This constitutes a 21.8 per cent increase compared to the Rs 1.80 lakh crore allocated in FY 2025-26.
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