New Delhi, October 14. The Ministry of Defence (MoD) has utilised more than half of its capital outlay for the ongoing financial year 2025–26, marking strong progress in defence modernisation and procurement. As of September 2025, the ministry has spent Rs. 92,211.44 crore – or 51.23 percent – of its total allocation of Rs. 1,80,000 crore under the capital head.
In the previous fiscal year, the MoD had achieved full utilisation of its capital expenditure, amounting to Rs. 1,59,768.40 crore.
According to a press statement issued by the ministry, the current pace of spending will ensure the timely delivery of critical platforms such as aircraft, ships, submarines, and advanced weapon systems, vital for strengthening the armed forces. The bulk of the expenditure so far has gone towards aircraft and aero engines, followed by land systems, electronic warfare equipment, armaments, and projectiles.
Capital expenditure, the MoD noted, is essential not only for acquiring new defence assets and advancing research and development but also for infrastructure projects in border areas, which are key to national security. Additionally, such investments have a multiplier effect on economic growth and employment generation.
With major procurement projects nearing approval, the ministry expressed confidence that it would once again achieve full utilisation of its capital budget by the end of FY 2025–26. Simultaneously, work is underway to finalise revised budget estimates for the year.
At the Budget Estimate (BE) stage, the Ministry of Finance had allocated Rs. 1,80,000 crore under the capital head to the MoD – a 12.66 percent increase over the actual expenditure in FY 2024–25.
Continuing its focus on self-reliance, the MoD has earmarked Rs. 1,11,544.83 crore in FY 2025–26 for procurement from domestic industries. Of this, around 45 percent has already been utilised. The allocation aims to boost ‘Aatmanirbharta’ (self-reliance) in defence technology and manufacturing, while encouraging participation from MSMEs and startups.
The capital outlay for the armed services has maintained a steady upward trend, rising by nearly 60 percent over the past five years, reflecting the government’s sustained push towards modernising India’s defence capabilities through indigenous means.
