Union Defence Minister Rajnath Singh speaks to the media on the Union Budget 2026-27, in New Delhi
| Photo Credit:
ANI
Thanking Prime Minister Narendra Modi, Rajnath Singh stated that the budget, which comes after the historic success of Operation Sindoor, strengthens the security-development-self-reliance balance, and it is in the best interest of the nation.
In a post on X, he asserted that the budget augments the security-development-self-reliance balance.
He noted that “over ₹2.19 lakh crore have been allocated under the capital head to the armed forces, and out of this, ₹1.85 lakh crore is earmarked for capital acquisition, which is approximately 24 per cent higher than the capital acquisition budget for FY 2025-26.”
Modernisation of the Armed Forces is an important aspect of this budget, he said.
Reiterating the Government’s commitment towards the welfare of veterans and their families and providing them with quality healthcare, Singh said ₹12,100 crore have been allocated the Ex-Servicemen Contributory Health Scheme, which is 45.49 per cent higher than the Budgetary Estimates of Financial Year 2025-26.
According to the Minister, it’s a testimony to the government’s resolve of the welfare of ex-servicemen and their families.
The Society of Indian Defence Manufacturers (SIDM) and the CII stated that this “enhanced allocation is expected to drive growth for the defence industry, foster innovation, and contribute to India’s strategic self-reliance.”
It also underscores, as per the SIDM, the government’s commitment to strengthening indigenous defence manufacturing, modernising the armed forces with advanced technology and supporting Make in India initiatives in the defence sector, said SIDM president Arun T Ramchandani.
Amit Mahajan, Director, Paras Defence & Space Technologies , this decisive fiscal push strengthens long-term demand visibility for domestic defence manufacturers and accelerates India’s transition from a buyer to a builder of advanced defence systems.
The push to simplify customs and excise duties, waive basic customs duty on raw materials for aircraft parts used by defence units, and back domestic manufacturing through measures like the ₹10,000 crore growth fund for MSMEs creates a far more supportive environment for indigenous production and faster execution, said Bodhisattwa Sanghapriya Founder and CEO, IG Defence & Co-Chair, FICCI Drones Committee.
Sashi Mukundan, Executive Vice President, Rolls-Royce India, was of the view that the budget is forward looking and focuses at making a viksit Bharat, accelerating programs to support national and energy security!
“In aerospace and defence, the BCD waiver on components that also supports maintenance, repairs and overhaul services will help the aviation sector. Similarly, the tax holiday on data centers will make India a data and AI powerhouse and encourage next-generation talent. Rolls-Royce can and will play a supportive role in all of these initiatives,” Mukundan stated
Published on February 1, 2026
