₹7.85 lakh crore Defence Budget signals major push for modernisation, future-ready forces: V.K. Saraswat

V.K. Saraswat highlights a ₹7.85 lakh crore Defence Budget, enhancing modernization and future capabilities of India's armed forces.

“To modernise all the three services of the Defence sector and enhance their future capabilities, the Central Government has allocated ₹7.85 lakh crore to the Ministry of Defence in Union Budget 2026 -27,” said NITI Aayog member V.K. Saraswat. 

Speakihng to The Hindu on the sidelines of a ‘Defence Science Conclave’ organised by a local college in Vijayawada, Mr. Saraswat said the allocation marks a 15.19% increase over the FY 2025 -26 Budget Estimates, and accounts for 14.67% of total Central Government expenditure. “Allocation to DRDO has increased to ₹29,100.25 crore in the current financial year from ₹26,816.82 crore in FY 2025 –26,“ he said.

The distinguished scientist with a vast experience in defence research said the emphasis is on acquiring advanced platforms, cutting-edge technologies and force multipliers. He said the proposal to support States in creating five university townships in the vicinity of industrial and logistics corridors was another major initiative to facilitate training of the youth across multiple research disciplines and align skill development with India’s long-term vision of becoming Viksit Bharat by 2047.

On atomic energy, he said the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025, reflects the government’s effort to modernise the laws governing the nuclear sector.

“It opens the nuclear energy sector to private sector participation for the design, development, manufacturing and large-scale collaboration of nuclear power plants, including small, medium and large modular reactors,” he said, insisting that this shift is critical to achieving India’s target of 100 GW of nuclear power, which cannot be met without the involvement of private sector.

“The idea is to guide the country toward a more advanced and resilient nuclear ecosystem,” he said.