Op Sindoor raises India’s defence budget by ₹1 lakh crore:Biggest hike in 10 years; fighter aircraft, engines cost ₹64,000 crore alone

After Operation Sindoor, today on 1 February, Finance Minister Nirmala Sitharaman presented the first general budget. She has allocated ₹7.84 lakh crore for the defence budget, which is 15% more than last year. According to figures, there has been an increase of ₹1 lakh crore in the defence budget, which is the highest in the last 10 years. After the conflict with Pakistan last May, this increase in the defence budget was expected, which the government has fulfilled. Read the complete mathematics of the defence budget in this story… Breakdown of ₹7.84 lakh crore defence expenditure The total defence expenditure for 2026-27 has been set at ₹7.84 lakh crore. It has been divided into four parts… 1. 22% increase in Capital Expenditure The biggest jump is in capital expenditure. ₹2.19 lakh crore has been allocated for this in 2026-27, which is 21.84% more than last year. This will be used for infrastructure, assets, machinery etc. Last year it was ₹1.80 lakh crore, which has been revised to ₹1.86 lakh crore. 2. Revenue expenditure increased by 17% For revenue expenditure, ₹3.65 lakh crore have been allocated this year, which is 17.24% more than last year. This will be used for expenses like ammunition, fuel, repairs and staff salaries. 3. Defence pension also 6.5% higher ₹1.71 lakh crore have been allocated for defence pension, which is 6.53% more than last year. This will be spent on providing pensions or financial assistance to retired soldiers and their families. 4. Minor cut in civil defence There has been a slight reduction in civil defence this time. Last year it was ₹28,555 crore, which has decreased to ₹28,426 crore this year. That means a reduction of about 0.45%. Operation Sindoor’s impact on defence budget The impact of Operation Sindoor is clearly visible in Budget 2026-27. The government has increased defence capital expenditure, meaning spending on weapons and major equipment, by 21.84% to ₹2.19 lakh crore. Defence Minister Rajnath Singh said, ‘After Operation Sindoor, this budget has been prepared keeping in mind the country’s security needs. This will further strengthen the army’s preparations.’ The government believes that in changing security conditions, the army needs modern weapons, better technology and a robust supply system. This is why there has been a major increase in capital expenditure. During the budget speech, Finance Minister Nirmala Sitharaman also mentioned changing geopolitics and challenges. Deal for 114 Rafales, expenditure on new aircraft and engines The Defence budget focuses most on aircraft and aero engines. ₹63,733 crore has been allocated for this. Meanwhile, ₹25,024 crore has been given for the naval fleet. This will be used to purchase or upgrade fighter jets, transport aircraft, helicopters and their engines. Several major Defence deals are expected next year. ₹17,000 crore for Research and Development Defence Industry to Benefit from Removal of Custom Duty In the budget, the Finance Minister has removed custom duty on imported raw materials used in manufacturing aircraft and Defence equipment. This decision will directly benefit the country’s Defence and aerospace industry. Production will become cheaper and private company investments will increase. India’s Defence Budget Behind China but Ahead of Pakistan Last year China’s defence budget was around 247 billion dollars or ₹22.6 lakh crore. It is estimated that this year in 2026 it could exceed 300 billion dollars or ₹27 lakh crore. Meanwhile, Pakistan has also sharply increased its defence budget. Last year after Operation Sindoor, it presented a defence budget of ₹81,000 crore, which was 20% more than 2024. However, in 2025, Pakistan had to cut its total budget by 7% to increase the defence budget. On the other hand, India has increased its defence budget by 15% while also increasing the total budget by about 8% from last year.