Defence Budget

Operation Sindoor shapes FY27 defence Budget as India lifts spending to 2% of GDP, boosts capital outlay and modernisation to prepare for a potential two-front conflict

The share of domestic firms in the value of capital procurement was 87% in FY25. This level will never fall below 75%

The government's allocation touches 2 per cent of the GDP months after Operation Sindoor and with an eye on modernisation

Defence's share of GDP declined from 2.25 per cent in FY20 to 1.91 per cent in FY25, a level that was maintained in FY26 as well

Key sectors such as defence and railways saw large FY27 allocations in the Budget documents, even though they found little or no mention in Sitharaman's Budget 2026 speech

As the Union Budget 2026 approaches, all eyes are on India’s defence budget and security spending. This video breaks down the Defence Budget using charts and data, explaining defence

Even as it faces active terror threats, the Indian Army's share of defence capital spending has fallen sharply, lagging behind the Air Force and Navy

India may seek a 20% rise in defence modernisation spending next year as the MoD pushes for faster upgrades, stronger exports, and stricter accountability across domestic and foreign defence suppliers

China, which views democratically-governed Taiwan as its own territory, has ramped up military and political pressure over the past five years to assert its claims, which Taipei strongly rejects

Germany's finance minister on Tuesday vowed to lift the country's defense spending to 3.5 per cent of gross domestic product in 2029 as he presented the new government's spending plans. Chancellor Friedrich Merz's coalition pushed plans through parliament to enable higher defence spending by loosening strict rules on incurring debt even before it took office last month. It acted ahead of the NATO summit starting Tuesday that aims to raise allies' defence spending target from 2 per cent of GDP to 3.5 per cent, plus another 1.5 per cent for potentially defense-related infrastructure. Finance Minister Lars Klingbeil said Germany's defence spending will hit 2.4 per cent of GDP this year, and we will raise defence spending step by step so that we will reach a NATO quota of 3.5 per cent in 2029. Klingbeil, who is also the vice chancellor, said he will be very vigilant that the money is spent efficiently, for example by aiming for greater cooperation at European level on procurement, ...

Japan and other US allies have been engaged in difficult trade talks with the United States over President Trump's worldwide tariff offensive

Experts say increasing the defence budget as a share of GDP even by a single basis point could significantly increase access to funds

The report notes that achieving the vision of India as a developed nation by 2047, particularly through a strengthened defence sector, faces several roadblocks and challenges

China's most advanced aircraft carrier Fujian, equipped with electromagnetic catapults, has completed its eighth sea trial

A Kargil-style squeeze on public finances is unlikely in 2025, but rising defence demands may challenge Nirmala Sitharaman's consolidation strategy

Pakistan coalition government has endorsed an 18 per cent increase in defence spending to over Rs 2.5 trillion in the next budget due to tensions with India, according to a media report on Tuesday. The government is set to unveil the 2025-26 budget in the first week of the next month ahead of the start of the new fiscal year from July 1. India and Pakistan have witnessed heightened tensions since the April 22 terror attack in Jammu and Kashmir's Pahalgam that killed 26 people. The Express Tribune reported that the Pakistan Peoples Party (PPP) delegation, led by its chief Bilawal Bhutto Zardari, met with Prime Minister Shehbaz Sharif and his economic team to discuss the budget matters on Monday. The Pakistan Muslim League-Nawaz (PML-N)-led government shared roughly Rs 17.5 trillion worth of new budget framework with its key ally, the PPP, which agreed to 18 per cent increase in the defence outlay. There was a consensus between the PML-N and the PPP to increase the defence budget du

The Chinese military on Wednesday criticised the United States for increasing its defence budget to USD one trillion, saying that "wanton use of force will not make America great again". Reacting to reports that the US defence budget for fiscal year 2026 will reach a record USD one trillion, Zhang Xiaogang, a spokesperson for China's Ministry of National Defence, said such an act would only inflict painful disasters upon the people of the US and the rest of the world. China, which is the second largest defence spender after the US, hiked its defence budget early this year by 7.2% increase to USD 249, which is a USD 17 billion rise compared to last year. America's sky-high defence budget exposed once again the bellicose nature of the US side and its belief in "might makes right," Zhang was quoted as saying by the state-run Xinhua news agency reported. The US government is in heavy debt, yet it keeps pouring ill-gotten wealth exploited from other countries into manufacturing weapons,