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DEFENCE INDUSTRY

Rajnath Singh hails record defence allocation in Union Budget, emphasises modernisation and veterans’ welfare

(Photo courtesy: X)

New Delhi, February 2. Defence Minister Rajnath Singh has welcomed the allocation of Rs 7.85 lakh crore ($85.75 billion) to the defence sector in the Union Budget 2026-27 presented Finance Minister Nirmala Sitharaman on February 1, thanking Prime Minister Narendra Modi for what he described as a decisive step towards strengthening India’s security architecture in the wake of the successful Operation Sindoor.

In a post on X, Singh said the enhanced defence outlay reinforces the balance between security, development and self-reliance, and reflects the government’s resolve to build a robust and resilient national security system.

Highlighting the focus on modernisation, the Defence Minister noted that more than Rs. 2.19 lakh crore has been provided under the capital head for the armed forces. Of this, Rs. 1.85 lakh crore has been earmarked for capital acquisition – around 24 percent higher than the allocation in 2025–26. He said the increased spending would significantly enhance India’s military capabilities, underlining that modernisation remains a key priority of the government.

Singh also pointed to the emphasis on veterans’ welfare, stating that Rs. 12,100 crore has been allocated to the Ex-Servicemen Contributory Health Scheme. The allocation represents a 45.49 percent increase over the previous year’s Budget Estimates and will help ensure quality healthcare for ex-servicemen and their families. He described the enhanced provision as a clear reflection of the government’s commitment to the welfare of veterans.

The Defence Minister congratulated Finance Minister Sitharaman for presenting what he termed an “excellent” budget under the guidance of the Prime Minister. He said the budget aligns with public expectations and lays a strong foundation for achieving the vision of an ‘Aatmanirbhar’ (Self-reliant) and Viksit Bharat (Developed India), while providing for the upliftment of all sections of society.

Singh added that under Prime Minister Modi’s leadership, India’s journey towards becoming a developed nation continues to gain momentum. Referring to the budget as “Yuva Shakti-driven”, he said it seeks to convert aspirations into achievements and unlock the country’s potential. Inspired by the three ‘Kartavyas’, the budget aims to accelerate economic growth, fulfil public aspirations and ensure inclusive participation, while promoting manufacturing, sustainable infrastructure and equitable development, with a special focus on the poor, underprivileged and disadvantaged.

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