The Indian government is contemplating a significant 20-25% increase in the defense budget for FY27 to enhance military capabilities and bolster domestic defense manufacturing. This proposed budgetary boost, alongside potential changes to procurement policies, aims to promote private sector participation and reduce dependency on imports. The Defense Ministry is advocating for an increase in research and development funding from approximately Rs 27,000 crore to Rs 35,000-40,000 crore to support innovative technological advancements. By leveling the playing field for private firms alongside public sector undertakings, the government seeks to foster a competitive defense industry that will ultimately strengthen India’s security framework and promote self-reliance.