China's latest defence budget surges to $275 billion, fueling its ambitious military modernisation program and intensifying geopolitical dynamics in the region.
'If you go by the capital expenditure, this is a good defence budget. But we will have to see if the government can keep defence spending at 2 per cent or higher in 2027-2028.'
In 2025-26, the government allocated Rs 6,81,210 crore for defence budget.
Pakistan on Tuesday increased its defence budget by 20 per cent, allocating PRs. 2,550 billion ($9 billion) for the fiscal year 2025-26, amid tensions with India.
'Make-in-India played a key role in India's effective action against terrorism during Operation Sindoor.'
China has announced a 7.2 percent increase in its national defence budget, bringing the total to USD 249 billion for the year. This rise comes amidst China's ongoing efforts to modernize its armed forces, including the development of new warships and fighter jets. The budget increase, exceeding last year's 7.2 percent rise, reflects China's commitment to bolstering its military capabilities. Chinese Premier Li Qiang emphasized the importance of the Communist Party's leadership in guiding the military, with President Xi Jinping at the helm of the Central Military Commission. China's defence spending is now three times that of India's and is viewed by critics as a sign of the country's growing military ambitions.
Under capital expenditure, Rs 48,614 crore has been set aside for aircraft and aero engines while Rs 24,390 crore has been allocated for the naval fleet.
Defence expenditure was pegged at 1.4 per cent of GDP in the Budget for 2025-26 but it may widen, depending on tensions between India and Pakistan.
Even as the benchmark and broader indices were down sharply on Monday due to escalating tensions in West Asia, the Nifty Defence index ended the session in the green.
The fiscal tilt towards capex benefits companies in investment-related sectors like capital goods, defence equipment, engineering & construction and metal & mining. The planned cut in revenue expenditure will weigh on companies in consumption sectors like FMCG, consumer durables and retail.
The idea of back-loading the target of fiscal consolidation is perhaps guided by the government's desire to be prepared for any adverse developments in the coming year, points out A K Bhattacharya.
Finance Minister Nirmala Sitharaman's biggest challenge will be to find a new growth driver, particularly against the backdrop of a global economy ravaged by heightened uncertainty and fragmentation, financial markets on a precipice, and global commodity prices on a continued uptrend.
As many as 17 cancer drugs, along with medicines and food for special medical needs for seven rare diseases, components for microwave ovens are some of the items that are set to become cheaper with Finance Minister Nirmala Sitharaman announcing cuts in customs duty in the Union Budget 2026-27.
Around 24 paise will come from borrowings and other liabilities, 10 paise from non-tax revenue like disinvestment, and 2 paise from non-debt capital receipts, the Budget documents showed.
How does the BrihanMumbai Municipal Corporation's budget compare with the budget of other Indian cities?
India spends significantly less on defence than could be expected from a country that faces simultaneous armed threats from two hostile neighbours -- China and Pakistan.
The Defence Acquisition Council (DAC) has recently approved procurement proposals worth Rs 79,000 crore across three services and it has cleared AoN (Acceptance of Necessity) of Rs 3.3 trillion in financial year 2026 (FY26).
'We believe the truth is in the middle, and that India is at an important crossroads.'
The defence budget was on Thursday increased to Rs 6.21 lakh crore for 2024-25 in a modest hike of 4.72 per cent from last year's allocation of Rs 5.25 lakh crore amid India's continuing border row with China in eastern Ladakh as well as concerns over evolving security situation in the strategic waterways.
China, which is the second highest spender on defence after the United States, has allocated 1.67 trillion yuan (about USD 232 billion) for defence spending.
Restoring weighted tax deductions and adopting a petty patents regime can foster firm-level innovative activity critical for competitiveness, points out Nagesh Kumar.
The government should refrain from raising income tax surcharge on the super-rich and reintroducing wealth tax in the upcoming 2026-27 Budget, as the move could prompt persons in high-income brackets to leave the country for low-tax jurisdictions, according to tax experts.
Congress leader Rahul Gandhi has called on Prime Minister Narendra Modi to address the escalating conflict between the US, Israel, and Iran, particularly regarding the alleged assassination of the Iranian Supreme Leader. Gandhi emphasised the need for India to uphold international law and advocate for peaceful resolution.
Congress leader Rahul Gandhi alleges Prime Minister Narendra Modi avoided Parliament due to fear of the Naravane book issue and dared those claiming a threat to the PM to file an FIR.
'Even if it is defeated and the Speaker remains, the Opposition parties that have lost faith in his impartiality will continue to have that feeling.' 'If the Speaker reflects on this and tries to be more neutral, more impartial, more objective in his conduct -- then one can say the resolution had a salutary effect. That would be the best outcome.'
Sonia Gandhi has criticised the Modi government's silence on the assassination of Iran's Supreme Leader, arguing it raises doubts about India's foreign policy direction and credibility.
The largest tranche came in July, in the wake of Operation Sindoor, with the DAC according acceptance of necessity -- or initial approval -- for 10 capital acquisition proposals amounting to approximately 1.05 trillion through indigenous sourcing.
Defence Minister Rajnath Singh praised the Indian Coast Guard's role during Operation Sindoor and highlighted its importance in national security on the occasion of its 50th Raising Day.
The army has been behind the other two forces in capex since FY21.
'This Budget has a one-year agenda, which you can call the sprint, and the marathon is towards Viksit Bharat.'
To threaten China and Pakistan, and then to sharply cut back on military funding, bespeaks a remarkable trust in Beijing and Islamabad that is not borne out by anything they say or do, notes Ajai Shukla.
'For those in for the long haul, this is a God-given opportunity.' 'Your market is falling despite strong fundamentals, and such a clear roadmap has been announced.'
'Some success has been achieved in raising the costs of terrorism for Pakistan.'
The 15th India-Vietnam Defence Dialogue signalled a move from routine talks to deeper cooperation, with new deals on submarine rescue and defence industry to support stability in the Indo-Pacific, notes Dr Rajaram Panda.
Stock market is gearing up for an eventful week ahead where key triggers such as quarterly earnings from corporates, the US Fed interest rate decision and the upcoming Union Budget for 2026-27 would grab the limelight, analysts said.
Rijiju, however, did not specify when and who will give notice for privilege motion against Gandhi. It is believed that someone from treasury benches in the Lok Sabha will do so.
Union Minister Kiren Rijiju has accused Congress MPs of abusing Lok Sabha Speaker Om Birla in his chamber, alleging that senior Congress leaders were present and encouraging the behavior. The accusation follows days of disruptions in the Lok Sabha over Rahul Gandhi's attempt to discuss excerpts from a former Army chief's unpublished memoir.
The most worrying aspect of defence budgeting is that the military's long-term equipment planning is based on fundamentally flawed fiscal assumptions.
The government rejected the opposition's demands for discussions on the VB-G RAM G Act and the SIR in the Budget session of Parliament, stating that the issues had already been debated.
Delhi Police are investigating the alleged leak of General M M Naravane's unpublished memoir, questioning Penguin India representatives and probing potential coordinated efforts to bypass defense ministry clearances.
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