India Defence Budget 2025: India’s Defence Budget Witnesses Over 9% Increase From Previous Year

India Defence Budget 2025: India’s defense budget has increased significantly during the last decade. For the fiscal year 2025-26, the defense allocation is Rs 6.81 lakh Cr, up from Rs 2.53 lakh crore in 2014. This is a 10-year gain of nearly Rs 2.5 lakh Cr. The budget has increased by 9.5% over the previous year, reflecting India’s focus on increasing its military capabilities. The overall capital expenditure is Rs 1,92,387 Cr, with Rs 48,614 Cr allotted for aircraft and engines, Rs 24,390 Cr for the navy fleet, and Rs 63,099 Cr for other acquisitions. Additionally, Rs 1,60,795 Cr has been set aside for pensions, while the revenue expenditure is Rs 4,88,822 Cr.

Rise in Indian Defence Expenditure

According to the Stockholm International Peace Research Institute (SIPRI), India was the world’s fourth largest military spender in 2023, spending $83.6 billion. China, the second-largest military spender, allotted $296 billion, roughly tripling India’s budget. The United States leads the Global Firepower Ranking 2025, with a defense budget of $895 billion, followed by China at $266 billion and Russia at $126 billion. India’s defense budget, estimated at $75 billion, demonstrates its commitment to modernization despite being much cheaper than its global competitors.