New Delhi: The government is preparing the next Union Budget at a time of serious global tension. The world is facing instability, uncertainty and growing military threats, not seen since the Second World War. In this situation, national security planning is no longer limited to protecting borders only.
For a rising power like India, security now extends across land, sea, air, cyberspace and outer space. The country’s challenges go well beyond traditional borders.
Defence Challenges
Complicated relations with neighbouring countries and long coastlines have increased India’s defence needs. Rapid changes in the nature of warfare and the rise of high-technology weapons have made security threats multi-layered.
Simple procurement of weapons or short-term upgrades no longer offer solutions. Armed forces now require full-spectrum modernisation and readiness for future forms of warfare.
Recent conflicts have highlighted this change. Operation Sindoor, the United States strikes on Iran, the Russia-Ukraine war and the Israel-Hamas conflict have shown that decisive battles increasingly take place in the air and across advanced technological domains.
China’s rapid build-up of military infrastructure along border areas, deployment of advanced weapons and investments in cyber and space warfare have added pressure. Pakistan-backed terrorism and proxy conflict now include drones, UAVs and cyber attacks. These trends have raised the level of complexity.
In the maritime domain, China is growing naval presence in the Indian Ocean, investments in strategic ports and efforts to dominate sea lanes pose serious challenges to India’s maritime security.
Need For Modern Weapons, Technology
The situation has made modernisation of the Indian Army, the Navy and the Air Force unavoidable. The country has one of the world’s largest armed forces by numbers. Capability gaps are visible in the context of modern warfare.
The Army needs advanced air defence systems, modern tanks and network-based combat platforms. The Air Force continues to face shortages in fighter aircraft strength. Movement has begun toward acquiring 114 new Rafale jets.
Naval shipbuilding and submarine projects are underway. Faster execution is essential.
Cyber warfare, space operations and electronic warfare now influence modern conflicts. Drones, artificial intelligence and automated weapons systems are redefining battlefields. Capital investment in these areas has become essential for future readiness.
Plans to create integrated theatre commands for better coordination among the three services require faster execution. Budgetary and administrative delays need removal.
Budget Numbers, Strategic Gaps
India ranks among the world’s top five defence spenders. Spending is far below that of China, the United States and Russia.
The 2025-26 defence allocation stood at Rs 6.81 lakh crore. The figure showed an increase of nearly 9.5 percent over the previous year. Capital expenditure stood at Rs 1.81 lakh crore.
Assurances have been given that defence procurement priorities will not face funding hurdles.
Self-Reliance, Structural Reform
Defence self-reliance is an important objective. Indigenous systems face their biggest test in timely delivery and performance on the ground. Bridging the gap between policy intent and operational reality has become critical.
A rise in capital expenditure is necessary. A large share of the defence budget continues to go toward salaries and pensions. Annual budget increases often align only with inflation. This pace falls short of the requirements of modernisation.
Recent wars have shown that future conflicts may involve high-intensity short battles and prolonged engagements lasting several years. Preparedness for such scenarios demands sustained investment.
Calls are growing to raise defence spending to at least three percent of the GDP. Clear separation of revenue and capital expenditure is also being pushed.
As expectations rise ahead of the budget, the focus is on defence allocation for readiness for a far more dangerous and technology-driven world.

