Lt Gen Kapil Aggarwal (Retd)

India’s Defence Budget 2025-26 is ₹6.81 lakh crore, comprising 1.85% of GDP, with ₹1.8 lakh crore for capital outlay and ₹3.12 lakh crore for revenue expenditure. Despite a 9.5% rise over BE 2024-25, defence spending as a percentage of GDP has declined over decades. The budget prioritizes indigenous procurement (₹1.11 lakh crore) and modernization but faces challenges from slow procurement processes and rising pension costs. National security concerns persist, necessitating increased R&D investment, policy reforms, and higher capital allocations to enhance military preparedness and ensure strategic deterrence. A non-lapsable modernization fund is crucial for sustained capability enhancement.