Against the backdrop of intensifying global and regional strategic turbulence, India's latest defence budget signals continuity more than disruption. The allocation of ₹7.85 lakh crore to the Ministry of Defence - up from ₹6.81 lakh crore last year - reinforces the centrality of security considerations in India's fiscal priorities. Of this, ₹2.19 lakh crore has been earmarked for capital expenditure aimed at modernising the armed forces, including ₹63,733 crore for aircraft and aero-engines and ₹25,023 crore for the Navy. The remaining ₹5.54 lakh crore is devoted to revenue expenditure, with pensions alone accounting for ₹1.71 lakh crore.

Alongside these allocations, the government has sought to advance its long-standing objective of defence self-reliance. The decision to exempt basic customs duty on components and parts required for the manufacture of civilian, training and other aircraft - and to waive duties on raw materials used for aircraft maintenance, repair and overhaul - signals an attempt to align fiscal policy with industrial strategy. These measures are intended to strengthen domestic aerospace manufacturing and reduce import dependence, particularly in high-value segments of the defence supply chain.

Over the past several years, India's defence budget has exhibited a steady upward trajectory. This reflects a recognition of India's increasingly complex security environment, shaped by........

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