India’s defence budget likely to increase by USD 5.85B after Operation Sindoor’s success

Published on Authored by C to I News Desk

India’s defence budget may get a big boost of INR 50,000 crore (USD 5.85 billion), government sources told NDTV on Friday morning, May 16. This increase is likely to be announced in the upcoming supplementary budget, which will be presented during the Winter Session of Parliament.

Akash Prime
Akash Prime is equipped with an indigenous active Radio Frequency (RF) seeker for improved accuracy, other improvements also carried out to enhance the performance of the missile in low temperature environments at higher altitudes. Photo courtesy: Wikipedia/DRDO

If approved, the total defence allocation will cross INR 7 lakh crore (USD 81.87 billion), a historic figure. In the Union Budget for 2025-26, Finance Minister Nirmala Sitharaman had already set aside a record INR 6.81 lakh crore (USD 79.65 billion) for the defence sector.

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This amount was a 9.2 percent jump from INR 6.22 lakh crore (USD 72.78 billion) in 2024-25.

The extra funds are expected to be used for research and development, as well as for purchasing new weapons, ammunition, and other important equipment for the armed forces.

Defence has been a major focus for Prime Minister Narendra Modi’s government since it came to power in 2014. At that time, the defence budget was INR 2.29 lakh crore (USD 26.78 billion). Now, it has become the largest allocation among all ministries, making up 13 percent of the country’s total budget.

This possible increase in the defence budget comes after Operation Sindoor – India’s strong military response to the April 22 terror attack in Pahalgam, Jammu and Kashmir. In that operation, the Indian forces targeted several terror camps spread across Pakistan and Pakistan-occupied Kashmir (PoK) on May 7.

Operation Sindoor
DGMO Lieutenant General Rajiv Ghai, Air Marshal AK Bharti, DGAO, IAF, Vice Admiral AN Pramod and Major General S.S. Sharda briefing the media on Operation Sindoor at National Media Centre, in New Delhi on May 11, 2025. Photo courtesy: PIB

Operation Sindoor highlighted the Indian military’s strength and coordination, using advanced air defence systems that many compared to Israel’s ‘Iron Dome’. India’s own Akash missile defence system played a key role in the operation.

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Recently, the Indian armed forces also tested a new weapon called Bhargavastra – a low-cost, counter-drone system that can destroy enemy drones directly. It was successfully tested at the Seaward Firing Range in Gopalpur, Odisha this week.

With rising tensions along the borders and continued threats, India seems set to further strengthen its military power in the coming months.