New Delhi, Feb 1: Finance Minister Nirmala Sitharaman announced a 15% increase in the defence budget for 2026-27, allocating Rs 7.8 lakh crore, up from Rs 6.81 lakh crore.
The capital outlay includes Rs 2.19 lakh crore for military hardware, a 21.8% increase from the previous year.
This budget reflects a strategic shift towards modernisation, focusing on indigenous research and self-reliance amidst a changing geopolitical environment, notably following Operation Sindoor.
The Finance Minister proposed waiving customs duty on raw materials for aircraft maintenance, benefiting the defence sector. Defence Minister Rajnath Singh emphasized reinforcing the country’s defence capabilities.
Key beneficiaries include Hindustan Aeronautics Ltd, Mazagon Dock Shipbuilders, Bharat Electronics Ltd, and various private sector companies involved in drones and defence manufacturing.
