Breaking Update: Here’s a clear explanation of the latest developments related to Breaking News:In 1st Budget after Op Sindoor, defence gets huge boost for modernisation| India News– What Just Happened and why it matters right now.
Finance Minister Nirmala Sitharaman on Sunday announced a capital outlay of ₹5.95 lakh crore for defence, up from last year’s Budget of ₹4.92 lakh crore. While the total capital outlay has gone up about 22% from last year’s allocation, the budget for modernisation alone has been raised by 24%.
The ministry had wanted an increase of 20%, sources aware of the matter said, with the fresh boost targeted at increasing long-range standoff capabilities, military aircraft, missiles and armed drones in the aftermath of Operation Sindoor.
Defence ministry officials feel that the Budget impetus will enhance their capability in modernising the armed forces and equipment. Several projects linked to Rafale fighter jets, submarines and unmanned aerial vehicles are in the pipeline, the sources added.
In FY26, the Budget for the defence ministry’s capital outlay was ₹1.8 lakh crore. Capex allocations include ₹63,733 crore for aircraft and aero engines.
In 2025-26, the government had allocated ₹6.8 lakh crore for the defence budget. The capital outlay was pegged at ₹1,8 lakh crore, which increased to ₹1.87 crore in revised estimates.
“It is proposed to exempt basic customs duty on raw materials imported for manufacture of parts of aircraft to be used in maintenance, repair, or overhaul requirements by units in the defence sector,” the finance minister said in her Budget speech on Sunday.
She also announced an exemption in basic customs duty on components and parts required for the manufacture of civilian, training and other aircraft.