The Indian government is considering a significant increase of 20-25% in the defense budget for FY27, with plans to enhance private sector participation in defense manufacturing and reduce reliance on imports. This proposed budget, which may allocate Rs 35,000-40,000 crore for defense research and development, aims to modernize India’s defense capabilities and support indigenous innovation. Additionally, reforms in defense procurement rules are expected to level the playing field for private companies, allowing them to compete more effectively with public sector undertakings. These developments signify a strategic shift towards bolstering India’s self-reliance in defense, fostering a more competitive industry landscape, and enhancing national security.