Indian defence budget boosted by 9% as MoD heralds a “year of reforms”
The Indian Air Force has 73 Tejas Mk1A aircraft on order. (Photo: Wikimedia Commons)
This new budget announcement, which has an increased focus on domestic procurement, comes as international countries arrive ahead of Aero India 2025.
India has boosted its defence budget by 9% for the FY2025–26 financial year. A total of INR6.8 trillion (US$78 billion), up from INR6.2 trillion, has been allocated to the sector, amounting to 13.4% of its total national spending.
From this amount only 26%, or INR1.8 trillion, was reportedly allocated for the purchase of new aircraft, warships and other equipment to outfit and modernise its defence forces.
Significantly, INR1.2 trillion in the budget was allocated to domestic procurement, emboldening the government’s ‘Make in India’ initiative and the country’s focus in recent years on self-reliance in the defence sector.
The Indian Ministry of Defence (MoD) said that
Already have an account? Log in
Want to keep reading this article?
More from Air Warfare
-
![Evolving for the future fight]()
Evolving for the future fight
Built on a 60-year heritage of providing the Department of Defense with solutions to dominate the electromagnetic spectrum.
-
![Embraer sees 27% uptick in Q3 defence revenue, progress in NATO and India campaigns]()
Embraer sees 27% uptick in Q3 defence revenue, progress in NATO and India campaigns
The company also affirmed that it would maintain its current trajectory and remain “on track” for its full-year guidance.
-
![South Korea: $16.64 billion in as-yet-unawarded contracts up for grabs in the air domain]()
South Korea: $16.64 billion in as-yet-unawarded contracts up for grabs in the air domain
South Korea’s military air market is the 12th largest in the world when it comes to unawarded procurement programmes, with an estimated US$7.50 billion potentially set to be awarded over the next decade.
