Prime Minister Narendra Modi has emphasised the need for comprehensive modernisation of India’s defence forces, stating that the government must strengthen military capabilities in line with evolving global realities. His remarks followed the significant rise in defence spending announced in the Union Budget 2026, which he described as a reflection of India’s readiness to advance toward becoming a developed nation.
In an interview with news agency PTI, Modi said the latest budget demonstrates long-term preparation rather than a response driven by urgency or compulsion. According to him, India must remain strong and fully prepared at all times, and the increased allocation signals confidence in the country’s strategic and economic trajectory. He characterised the budget as a moment that reflects preparedness and ambition, aligning national security with broader developmental goals.
Under Budget 2026, the government raised total defence expenditure to ₹7.85 lakh crore for the current financial year, compared with ₹6.81 lakh crore in the previous year, representing an increase of nearly 15 percent. A key feature of the allocation is the sharp rise in defence capital expenditure, which has grown by 28 percent to ₹2.31 lakh crore from last year’s ₹1.80 lakh crore. Capital spending primarily funds military modernisation, including procurement of advanced equipment, technological upgrades, and expansion of indigenous defence manufacturing capabilities.
The increased allocation highlights the government’s focus on strengthening domestic defence production while enhancing operational readiness. Earlier this year, India approved a ₹3.25 lakh crore agreement with France for the purchase of 114 Rafale fighter jets, one of the largest combat aircraft acquisitions in the country’s history, underscoring the emphasis on upgrading air power and strategic capabilities.
Modi reiterated that national security remains a central priority, stating that the government will take all necessary measures to support and equip the armed forces. He stressed that defence modernisation is essential amid changing geopolitical conditions and emerging security challenges, arguing that preparedness requires continuous investment in advanced technologies and infrastructure.
Government data shows a substantial rise in defence spending over the past decade, increasing from ₹2.94 lakh crore in 2015–16 to ₹7.85 lakh crore in 2025–26. Capital expenditure dedicated to modernisation has also expanded significantly, rising from ₹83,614 crore in 2015–16 to ₹2.31 lakh crore in the current budget cycle.
Beyond defence, the prime minister linked economic strength to India’s growing global influence. He said improvements in manufacturing, services, and the MSME sector have enabled India to negotiate Free Trade Agreements with 38 countries from a stronger position. According to Modi, these agreements are designed to expand international market access for sectors such as textiles, leather, chemicals, handicrafts, and gems and jewellery.
Criticising the previous United Progressive Alliance (UPA) government, Modi alleged that earlier economic policies weakened India’s negotiating capacity, resulting in prolonged trade talks that produced limited outcomes. He argued that structural reforms introduced under his administration have strengthened investor confidence and improved the country’s competitiveness.
Highlighting the role of industry in future growth, Modi said the private sector will be crucial in driving the next phase of India’s economic transformation. He urged businesses to prioritise long-term investments in research and development, supply chains, and quality enhancement rather than focusing solely on short-term profit margins. According to him, achieving the vision of “Viksit Bharat” will depend on bold private investment in innovation, productivity, and global competitiveness, with the benefits of growth shared fairly with workers.
The prime minister also pointed to India’s rapid digital advancement, describing the country as a global leader in digital public infrastructure through initiatives such as the Unified Payments Interface (UPI). He added that expanding computing capacity and data centre infrastructure is laying the groundwork for a robust artificial intelligence ecosystem, which he said could generate significant employment opportunities for India’s young workforce.
Overall, Modi framed Budget 2026 as a comprehensive strategy combining defence preparedness, economic reform, technological progress, and private-sector participation, aimed at strengthening national security while accelerating India’s transition toward developed-nation status.
