India Eyes Additional ₹50,000 Crore for Defence in Wake of Operation Sindoor, Pushing FY26 Budget Past ₹7 Lakh Crore

 New Delhi, May 16, 2025: India's defence outlay may receive a substantial mid-year boost, with government sources indicating that an additional ₹50,000 crore could be allocated under a supplementary budget—primarily in response to the operational and strategic requirements following Operation Sindoor. If approved, this would elevate the total defence budget for FY 2025–26 beyond ₹7 lakh crore, setting a new benchmark in national security expenditure.

The Union Budget presented on February 1 had already earmarked a record ₹6.81 lakh crore for the Ministry of Defence, marking a significant 9.2% increase over the ₹6.22 lakh crore allocated for FY 2024–25. The prospective enhancement reflects the Centre’s renewed focus on operational preparedness and indigenisation in the aftermath of heightened cross-border tensions.

According to officials familiar with the matter, the supplementary allocation is expected to support critical sectors including weapons procurement, ammunition replenishment, defence R&D, and strategic infrastructure upgrades. Parliamentary approval for the proposal is anticipated during the Winter Session.

Since assuming office in 2014, the Narendra Modi-led government has steadily increased defence spending, nearly tripling the allocation from ₹2.29 lakh crore in its first year. Defence now accounts for roughly 13% of India’s total budget—the highest for any ministry. This intensified focus follows the April 22 terror attack in Pahalgam, Jammu and Kashmir, which killed 26 individuals and was attributed to Pakistan-based Lashkar-e-Taiba operatives. The incident triggered India’s decisive retaliatory action under Operation Sindoor, drawing strong domestic and international attention.

Operation Sindoor involved precision airstrikes on nine terror camps across Pakistan and Pakistan-occupied Kashmir (PoK), supported by advanced tactical systems. The operation showcased India's growing military prowess, including the use of the indigenously developed Akash air defence system, which has drawn comparisons to Israel’s Iron Dome for its effectiveness in neutralising aerial threats. India also deployed the Russian-origin S-400 systems to thwart Pakistani retaliatory drone and missile attacks.

In a further demonstration of indigenous capability, the Defence Research and Development Organisation (DRDO) successfully tested Bhargavastra, a next-generation counter-drone system. Operating in ‘hard kill’ mode, Bhargavastra uses micro-rockets to eliminate aerial threats and was successfully trialed at the Seaward Firing Range in Gopalpur, Odisha earlier this week.

Defence Minister Rajnath Singh reiterated the government’s commitment to self-reliance in defence manufacturing in the aftermath of the 100-hour high-intensity conflict. “Buying equipment from other countries means outsourcing our national security. That is not sustainable,” he said, calling for accelerated efforts under the 'Aatmanirbhar Bharat' initiative.

The Modi government has also adopted a more assertive national security doctrine. In his first public statement following Operation Sindoor, Prime Minister Narendra Modi issued a stern warning to terrorist actors and their state sponsors. “India’s posture on terrorism has changed decisively,” he declared. “There will be no dialogue on Kashmir unless it relates to dismantling terrorist infrastructure or the return of illegally occupied Indian territory.”

The response to the Pahalgam terror attack and the ensuing military operations signal a strategic pivot—moving from reactive defence to pre-emptive and punitive action. With India continuing to face asymmetric threats, particularly from Pakistan-sponsored proxies, the supplementary defence allocation may serve not only as a financial measure but as a political message: that India remains uncompromising on national security.