India's FY26 Defense Budget Boost Supports Indigenous Arms Development.
In a strategic move to bolster its defense capabilities, the Indian government plans to allocate an additional ₹40,000-45,000 crore to the FY26 defense budget, enhancing domestic procurement to over ₹1.12 lakh crore. This funding will primarily support high-priority projects, including the acquisition of advanced fighter jets and missile systems, emphasizing the Atmanirbhar Bharat initiative. The increased budget aims to address supply chain issues and ensure that over 75% of procurement is reserved for Indian vendors, thus fostering job creation and technological sovereignty. Amidst rising geopolitical tensions, particularly following border skirmishes, this initiative underscores India’s commitment to transforming into a self-reliant defense manufacturer, moving towards a defense economy that could rival global leaders.