NEW DELHI: India has announced a substantial increase in its defence budget, a move that comes after a major military setback against Pakistan in May last year.
India presented its annual budget for the 2026 fiscal year on Sunday, allocating around $95 billion for defence spending, an increase of nearly 15 percent from last year’s roughly $82 billion.
The increase underscores the government’s renewed focus on strengthening military readiness and modernising weapon systems following its setback in the brief conflict with Pakistan in May 2025.
A substantial amount of the additional funding has been earmarked for long-term defence investment, with capital expenditure rising by 28 percent to about $28 billion, compared with approximately $22 billion last year.
Presenting the budget, Finance Minister Nirmala Sitharaman said about $26.5 billion had been allocated for military modernisation, reflecting a year-on-year increase of 21.84 percent.
Spending on routine military costs—including fuel, ammunition, maintenance, and personnel salaries—has also been raised by 17.24 percent, while allocations for military pensions have increased to roughly $20.7 billion.
India’s defence budget last year stood at around $82 billion, showing a 9.2 percent increase over the 2024 allocation.
Analysts say the increase was widely anticipated, noting that in the aftermath of failed Operation Sindoor against Pakistan in May last year, defence officials had called for a 20 percent rise in the military budget.
During the May 2025 conflict, the most intense military confrontation between the South Asian neighbours in decades, Pakistan downed six Indian fighter jets, including French-made Rafale. India acknowledged losses but did not specify a number.
US President Donald Trump, who helped broker a ceasefire between Pakistan and India on May 10, had repeatedly said that seven jets were shot down during the Pakistan-India aerial combat in May.
A Swiss report on Operation Sindoor has challenged the Indian media narrative, highlighting early Indian tactical setbacks and Pakistan’s operational resilience.
The report confirmed that India suffered a significant tactical defeat during the opening night of the operation Sindoor on May 7.
According to the Swiss military report, Pakistan’s air and missile defences effectively countered the initial Indian air strikes.
Pakistani forces, deploying J-10C and JF-17 aircraft armed with PL-15 missiles, and HQ-9/16 surface-to-air missiles, shot down several Indian fighters, including at least one Rafale (wreckage BS001), one Mirage 2000I, and either a MiG-29UPG or Su-30MKI.
