Since the independence of India's defence budget has various changing contours. The country's defence budget reflects a commitment to enhancing capabilities in the various multiple domains. India allocates a significant portion of its annual budget towards maintaining a strong and capable zone of nation. Strategically, the consistent growth in the defence budget in recent years has bolstered the national security strategy.On February 1, 2025, the Indian Finance Minister announced the Union Budget for the fiscal year 2025-2026, allocating Rs 6,81,210 crore (78.4 billion in USD) for the defence sector. This allocation represents a 9.53% increase from the previous year's budget. India continues to be one of the world's second largest importers of weapons, with France, Russia, and the United States serving as its primary suppliers. India has ascended to the position of the fourth-largest military spender globally, following the United States, China, and Russia. This paper provides a strategic analysis of the primary components of the defence budget, examining modernisation and indigenisation, research and development, border infrastructure, and future implications. India Defence Long-term visionViksit Bharat @2047, which significantly underscores the government's commitment to modernisation the Armed Forces and focusing on simplifying defence procurement procedures.Ultimately, the defence budget for the fiscal year 2025-2026 signifies a pivotal advancement, a technologically empowered and self-reliant military force aligned with the Viksit Bharat @2047 agenda. It not only addresses present operational needs but also lays the foundation for future-readiness in a complex geopolitical scenario. The last ten years' data of India's defence Financial Year Defence Budget 2016-2017 2.49 lakh cr 2017-2018 3.60 lakh cr 2018-2019 4.04 lakh cr 2019-2020 4.31 lakh cr 2020-2021 4.71 lakh cr 2021-2022 4.78 lakh cr 2022-2023 5.25 lakh cr 2023-2024 5.94 lakh cr 2024-2025 6.2 lakh cr 2025-2026 6.81 lakh cr Source – Compiled data of the MOD Annual ReportsThe defence budget reflects a different scenario to enhancing capabilities across multiple domains included including Revenue Expenditure, Capital Budget, and DefenceIndigenisation and Modernisation – The defence budget demonstrates  a strong signals towards modernisationn and indigenous product of light combat aircraft and helicopters, advances military equipment, including drones and next- gen weaponaryt. This aligns Indian government Atmanibhar Bharat and Make in India programs , reducing dependency and forstering defence production.  The government of India is emphasising Atmanirbhar Bharat, which aims to promote the indigenisation of design, development, and manufacture of defence equipment within the country. There is ₹1.48 lakh crore earmarked for the acquisition of advanced platforms such as remotely piloted and deck-based aircraft, next-generation submarines, and AI-driven defence systems. Additionally, ₹1.2 lakh crore is allocated for procurement from Indian industries, supporting indigenisation. In the last three years, 122 contracts have been signed to promote self-reliance.For the period 2025-2029, India's defence spending is projected to reach $415.9 billion with a compound annual growth rate of 3.7%."Research and Development-The Defence Research and Development Organisation has risen to Rs 26,816 crore, which is 12% higher than the previous year's defence budget, to bolster indigenous technological advancements. The enhanced budgetary allocation will facilitate in technology development that increases the funding for private sector collaboration through such beneficial initiatives su as iDEX (Innovation for Defence Excellence) and ADITI ( Acing Development of Innovative Technologies with iDEX), and also strengthen the partnerships with domestic firms to accelerate innovation in hypersonic weapons, directed energy weapons.Border Infrastructure- India has allocated Rs 7,146 crore to allocated to enhance roads, tunnels, and bridges along its border is consistently allocates part of its defence budget to improve infrastructure, and higher operational budgets indicate a proactive stance in security strategic locations against adversarial threats. The country shares borders with several nations, including China, Bangladesh, Pakistan, Nepal, Myanmar, Bhutan, and Afghanistan. The Border Roads Organisation to enhance the interoperability nation's border areas by constructing tunnels, bridges, and roads such as LGG- Damteng- Yangte in Arunachal Pradesh, Asha- Cheema- Anita in J&K, and Birdhwal- Puggal- Bajju in Rajasthan. It boosts the socio-economic development, locally to improve the border development and strategic reach.Cybersecurity & AI –  The modern innovation cutting edge of technolgy in  present time, such as cybersecurity, space warfare, artificial intelligence, robotics, and machine learning, signals India’s move towards technological advancement that will enhance the preparedness for modern warfare. India's defence is a continuously evolving area that has garnered increased attention and funding to bolster national security. Increased investment in space security and cyber warfare will further strengthen India's military against emerging threats.  Indian Coast Guard- The Coast Guard procurement budget is 9,676 crore. It has also seen a significant jump in the previous year. This aligns Coast Guard focuses on Next-Generation Submarines and warships, currently has 151 ships and 76 aircraft. for the acquisition of Advanced Light Helicopters (ALH), Dornier Aircraft, Fast Patrol Vessels (FPVS), Training Ships, and Interceptor Boats to enhance maritime security and disaster response capabilities. The expanding role of the Indian Coast Guard and sustained investment in maritime assets reflect the growing importance of blue-economy capabilities amid an evolving Indo-Pacific security architecture.Role of the Private Sector- Further the strategic role of the private sector, enabling the multiplier effects on employment, economic growth and and defence growth. Although the private sector also strengthened the partnership with domestic firms to accelerate innovation in hypersonic weapons, directed energy weapons, and autonomous defence systems. Defence manufacturing will have a multiplier effect on the economy by creating employment, fostering innovation, and exporting foreign  Private sector Atmanirbhar Bharat.:. Defence manufacturing will have a multiplier effect on the economy by creating jobs, fostering innovation, and attracting foreign investments. Conclusion Defence budget for 2025-2026 highlights the security landscape while fostering a robust defence ecosystem for indigenous innovation and exports in the global Defence market, and also reaffirms Ministry of Defence's commitment to observe 2025 as a Year of Reform. The clear emphasis is on indigenisation through initiatives with significant outlay for domestic procurement. Prioritising indigenisation, R&D, border infrastructure, and emerging technologies like AI and cybersecurity positions India to counter evolving threats in a complex geopolitical environment. With substantial allocations for domestic procurement and private sector engagement, this budget enhances the national security strategy.

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