
The original appropriation for capital expenditure in the financial year was Rs 1.8 lakh crore, which was increased by the Finance Ministry in view of the pace of expenditure achieved by the Defense Ministry during the first two quarters and the increasing need of the forces for modernization and other purposes after Operation Sindoor, a release from the ministry said.
A significant portion of the expenditure was on the acquisition of aircraft and aero engines, followed by the acquisition of ground systems, electronic warfare equipment, weapons, shipbuilding, aviation stores and projectiles. It also included proposals for the acquisition of multi-role combat aircraft, medium altitude long-range remotely piloted aircraft for the Indian Air Force, mine counter measurement ships and quick reaction surface-to-air missile systems for the Navy and Nag missile system Mark-II for the Army.
In the financial year 2025-26, 109 proposals worth Rs 6.81 lakh crore were approved by the Defense Ministry, while in the financial year 2024-25, 56 proposals worth Rs 1.76 lakh crore were approved. Also, capital purchase contracts for a total of 503 proposals worth Rs 2.28 lakh crore were signed by the ministry in FY 2025-26.
With an increase of 22%, the Budget has allocated Rs 2.19 lakh crore under the capital head for FY 2026-27.