Defense Policy and Budgeting

MoD has utilized over 50% of FY 2025-26 capital outlay by September.

As of the end of September 2025, the Ministry of Defence (MoD) has utilized over 50% of its capital outlay for the Financial Year 2025-26, amounting to Rs 92,211.44 crore out of a total allocation of Rs 1,80,000 crore. This expenditure is focused on crucial military modernization projects, including aircraft and electronic warfare equipment, which are vital for national security. Notably, Rs 1,11,544.83 crore has been earmarked for domestic procurement, reinforcing India’s commitment to Aatmanirbharta in defense manufacturing. The capital allocation has increased by approximately 60% over the past five years, signifying a strategic shift towards strengthening indigenous defense capabilities and fostering economic growth through defense-related employment.

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