Summary:

India's defence budget will rise by 9.5% to Rs. 6,81,000 crore (US$ 78.32 billion) in 2025-26, aiming for modernization with Rs. 2,60,850 crore spent annually. 75% of capital expenditure will go to domestic procurement. Relaxed FDI policies and licensing reforms will boost the industry. Defence production hit Rs. 1,27,000 crore, with exports rising 30 times.

India’s defence sector is expanding with 16 PSUs, 430 licensed firms, and 16,000 MSMEs. Reducing entry barriers will foster innovation and adaptability. India may consider purchasing F-35 jets from the US if a formal offer is made. With Rs. 1,80,000 crore allocated next year, procurements will include fighter jets, submarines, and missiles.

Source: IBEF

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