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India to hike defence budget by $5.85 billion

Following a string of military setbacks and escalating tensions with Pakistan, the Indian government, led by Prime Minister Narendra Modi, is reportedly preparing to further hike its defence budget by a staggering 500 billion Indian rupees (INR).

According to media reports, the Indian administration plans to introduce a supplementary budget tied to Operation Sindoor aimed at significantly boosting its defence expenditure, marking yet another increase in military spending this year.

This comes after New Delhi had already raised the defence budget by 9% earlier this year, signalling a clear shift in strategic priorities amid ongoing regional friction.

If approved, this hike will push India’s total defence spending for the fiscal year 2025–26 to over 7 trillion INR. Earlier, the government had allocated 6.81 trillion INR (or 6,810 billion INR) in the Union Budget, marking a 9.5% increase from the previous year’s allocation of 6.22 trillion INR (or 6,220 billion).

The Indian government is likely to seek approval for the enhanced defence allocation during the upcoming Winter Session of Parliament. Since coming to power in 2014, the Narendra Modi-led administration has consistently prioritised defence.

In its first year, the BJP government allocated 2.29 trillion INR to the Defence Ministry — a figure that has more than tripled over the past decade.

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