BS EDIT: A Welcome Escalation

By Business StandardPublished On Feb 5, 2026

A Strategic Reset

Defence spending rises to ₹7.85 trillion, nearing 2% of GDP amid heightened two-front security risks

Capital Push

Capital expenditure at 28% reflects urgent replenishment needs and faster emergency procurement powers

Modernisation Drive

A 24% rise in the modernisation budget targets air defence, naval undersea systems, and long-range weapons

Cost Structure Shifts

Salaries and pensions are shrinking as a share of the Budget, possibly reflecting early Agneepath effects

Domestic Capacity Test

Heavy reliance on local procurement raises concerns over delivery delays and industrial readiness

Beyond The Numbers

Higher spending must translate into operational integration, full squadron strength, and real efficiency gains