Prime Minister Narendra Modi on Sunday underlined the necessity for complete defence modernisation, asserting that the federal government has an obligation to strengthen the armed forces in step with “present realities,” as mirrored within the elevated allocation within the Union Price range 2026.
In an interview with information company PTI, PM Modi mentioned this 12 months’s Price range indicators India’s preparedness to transition right into a developed nation.
“India must be robust and ready always, and that’s what we’re doing. This 12 months’s finances displays India’s craving to turn out to be a developed nation. The Price range is just not a ‘now or by no means’ second born out of compulsion, however a ‘we’re prepared’ second born out of preparation and inspiration,” he mentioned.
As per Price range 2026, the federal government introduced a huge improve in defence spending, elevating the general defence finances to Rs 7.85 lakh crore for the present monetary 12 months, up from Rs 6.81 lakh crore within the earlier 12 months – a hike of practically 15%.
A serious spotlight was the sharp rise in defence capital expenditure, which has elevated by 28% to Rs 2.31 lakh crore, in comparison with Rs 1.80 lakh crore allotted final 12 months.
The upper capital allocation underscores the federal government’s emphasis on procuring superior weapon programs and strengthening indigenous defence manufacturing.
In January, India authorised a Rs 3.25 lakh crore settlement with France to acquire 114 Rafale fighter jets, marking one of many largest fight plane acquisitions within the nation’s historical past.
Emphasising the federal government’s dedication to nationwide safety, the PM acknowledged that it’ll “do no matter it takes to assist the nation’s defence forces and strengthen them”.
He added that modernisation of the defence sector is important to make sure readiness amid evolving geopolitical and safety challenges.
As per authorities information, complete defence expenditure has elevated from Rs 2.94 lakh crore in 2015–16 to Rs 7.85 lakh crore in 2025-26.
Defence capital expenditure, which funds modernisation, has additionally grown in absolute phrases – from Rs 83,614 crore in 2015-16 to Rs 2.31 lakh crore in 2025-26.
On financial coverage, PM Modi mentioned stronger manufacturing, providers and MSMEs have enabled India to barter Free Commerce Agreements (FTAs) from a place of power with 38 nations.
“Our FTAs are designed to develop market entry for MSMEs in textile, leather-based, chemical substances, handicrafts, gems and different sectors,” he mentioned.
Taking a swipe on the earlier UPA authorities, the prime minister alleged that financial mismanagement had weakened India’s negotiating capability.
“Throughout UPA rule, talks would start after which break down; little actual substance was achieved regardless of lengthy negotiations,” he mentioned.
Calling reform a core dedication of his authorities, PM Modi mentioned the non-public sector will probably be vital in driving the subsequent section of financial transformation.
He urged trade leaders to focus much less on defending margins and make investments aggressively in analysis and improvement, provide chains and high quality.
“The following leap to Viksit Bharat will depend upon daring funding by the non-public sector in innovation, long-term capability and international competitiveness,” he mentioned, including that productiveness positive factors should be shared pretty with staff.
Highlighting India’s digital progress, the PM described the nation as a world chief, enabled by reforms such because the UPI platform.
He mentioned India is laying the muse for a thriving AI ecosystem by increasing computing energy and information centre infrastructure, which he termed a “huge job creator” for the younger workforce.
‘PRIVATE SECTOR TO PLAY KEY ROLE’
Prime Minister Modi mentioned the non-public sector will play a decisive position in driving the subsequent section of India’s financial transformation, urging trade leaders to reply boldly.
He reiterated that reform stays a core dedication of the federal government, demonstrated “in letter and spirit”.
The PM known as on companies to maneuver past defending margins and as a substitute make investments aggressively in analysis and improvement, provide chains and high quality.
The following leap in the direction of Viksit Bharat, he mentioned, will depend upon daring non-public funding in innovation, long-term capability and international competitiveness.
He added that political stability has restored investor confidence and productiveness positive factors should be shared pretty with staff.
– Ends
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