Defence ministry eyes ₹2 lakh cr in new orders this fiscal, targets capex at 2.5% of GDP by FY26: Report
New Delhi: India’s Ministry of Defence is aiming to place equipment orders worth ₹2 lakh crore in the current fiscal year, with a strong emphasis on modernisation and boosting domestic procurement, Defence Secretary Rajesh Kumar Singh told NDTV Profit.
The government is looking to ramp up capital expenditure on defence to 2.5% of GDP by FY2026, up from the current 0.5%, Singh said.
"Right now, defence spending overall is at 1.9% of GDP, but capex is only a fraction of that. My view is that we need to grow capex by at least 20% CAGR annually over the next five years to reach the 2.5% target," he said.
In the Union Budget for FY26, the Ministry of Defence was allocated ₹6.81 lakh crore—13.45% of the total budget.
Of this, ₹1.8 lakh crore was marked for capital outlay, up 4.65% over the previous year.
The bulk—₹1.48 lakh crore—is set aside for capital acquisitions.
Singh said the ministry plans to maintain this momentum with another ₹2 lakh crore in contract signings this fiscal, ensuring that a majority of these contracts go to Indian defence manufacturers.
In addition to capital spending, ₹3.11 lakh crore was earmarked for revenue expenditure such as salaries and maintenance.
Defence pensions received ₹1.61 lakh crore, while the DRDO was allocated ₹26,816 crore, reflecting a 12.4% year-on-year rise.
IBNS
Senior Staff Reporter at Northeast Herald, covering news from Tripura and Northeast India.
Related Articles
NDA finalises Bihar seat-sharing deal after weeks of talks; BJP, JDU to contest 101 seats each
After weeks of intense negotiations, the National Democratic Alliance (NDA) has finally sealed its seat-sharing agreement for the upcoming Bihar Assembly elections, Union Minister and BJP leader Dharmendra Pradhan said on X.
UP's Deputy CM Maurya leads delegation that transported Buddha relics to Russia for exposition
An Indian delegation led by Uttar Pradesh Deputy Chief Minister Keshav Prasad Maurya has transferred the relics of Gautam Buddha to Russia’s Kalmykia Republic for an exposition that began on October 11 and will continue until October 18 in Elista, the republic’s capital.
NDA finalises Bihar seat-sharing deal after weeks of talks; BJP, JDA to contest 101 seats each
After weeks of intense negotiations, the National Democratic Alliance (NDA) has finally sealed its seat-sharing agreement for the upcoming Bihar Assembly elections, Union Minister and BJP leader Dharmendra Pradhan said on X.
New Delhi: Indian Army to host UNTCC Chiefs’ Conclave tomorrow
The Indian Army will host the United Nations Troop Contributing Countries’ (UNTCC) Chiefs’ Conclave in New Delhi from October 14 to October 16, bringing together senior military leadership from 32 nations that play a pivotal role in UN peacekeeping operations.
Latest News
Fourteen months old toddler rape, murdered by maternal grandfather in Panisagar
Russia warns of 'dramatic escalation' over possible US supply of Tomahawk missiles to Ukraine
NDA finalises Bihar seat-sharing deal after weeks of talks; BJP, JDU to contest 101 seats each
UP's Deputy CM Maurya leads delegation that transported Buddha relics to Russia for exposition
