Defence R&D: Parliamentary panel calls for adequate budgetary provisions

The committee said the ministry is adopting emerging technologies of warfare and it has recommended that adequate budgetary provisions for research and development be made available to the armed force

Parliament, New Parliament
The Ministry of Defence has set up “a future warfare fund” within the armed forces. “A future analysis group” to study technologies is proposed to be set up, the panel said in its report.(Photo: PTI)
Satarupa Bhattacharjya New Delhi
3 min read Last Updated : Dec 09 2025 | 11:25 PM IST
The Parliamentary Standing Committee on Defence has recommended adequate budgetary provisions for research and development to ensure that combat preparedness of the country’s armed forces remains at an optimum level.
 
The Ministry of Defence has set up “a future warfare fund” within the armed forces. “A future analysis group” to study technologies is proposed to be set up, the panel said in its report, adding that emerging sectors in defence are robotics automation, velocity (important for hypersonic drones) and intelligence warfare (includes artificial intelligence, data analytics and machine-learning).
 
“The committee (members) are not oblivious to the fact that the budget to be spent on modernisation cannot be predicted to a large extent, and accordingly they feel that it is crucial to have (an) intensive study and knowledge of emerging trends in technology that will have an impact on war and the art of warfare,” a latest report of the panel, which was made public on Tuesday, said.
 
The committee said that the ministry is adopting emerging technologies of warfare.
 
The total allocated defence budget for the financial year 2025-26 (FY26) is ~6.81 trillion, which is approximately 13.45 per cent of the total central government expenditure. The report said the defence budget increased at a compound annual growth rate (CAGR) of 7.94 per cent from FY21 to FY26, which was “greater than the inflation rate” each year.
 
According to the report, the growth of the defence budget in FY26, adjusting inflation (per the consumer price index) of 4.90 per cent, comes in at 6.16 per cent, which “shows a marked improvement” when compared to this growth rate in FY25.
 
“Taking into account (a) competent growth of the defence budget in the recent years,” the committee recommended that, if needed, the defence ministry may be allocated additional funds at the revised estimate stage of the budget, so that the combat preparedness of the country’s armed forces “constantly remain at an optimum level," the report said.
 
The committee said that 75 per cent of the modernisation budget has been earmarked for procurement from indigenous sources, and “as such foreign-exchange risk does not play a major part in allocation of capital acquisition budget for the armed forces”.
 
India’s defence spending went up this year, owing to Operation Sindoor.   
The Defence Research and Development Organisation got ₹26,816.82 crore for FY26, according to government data.
   

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