Defence Must Keep Pace With Changing Realities, Says PM Modi (X)
New Delhi: Prime Minister Narendra Modi on Sunday said that in view of the changing global circumstances, comprehensive modernization of India's defense sector is very important. He said that it is the responsibility of the government to strengthen the armed forces as per the current needs, which is clearly indicated by the increase in defense expenditure in Budget 2026.
In an interview given to news agency PTI, PM Modi said that this year's budget shows India's preparation to become a developed nation. He said, "India has to be strong and prepared at all times and we are working in that direction. This budget is not a compulsion, but a sign of preparation and inspiration that India is ready to move forward."
The government has made a big increase in defense expenditure in Budget 2026. The defense budget for the current financial year has been increased to Rs 7.85 lakh crore, an increase of about 15 percent from last year's Rs 6.81 lakh crore.
There has also been a major increase in defense capital expenditure. This expenditure has increased by 28 percent to Rs 2.31 lakh crore, whereas last year it was Rs 1.80 lakh crore. The objective of this increase is to purchase modern weapons and strengthen indigenous defense production.
India signed a Rs 3.25 lakh crore agreement with France in January, under which 114 Rafale fighter aircraft will be purchased. This is one of the largest fighter aircraft deals in the history of the country.
Prime Minister Modi said that the government will take every necessary step to strengthen national security. He said that modernization of the Army is essential in the changing geopolitical and security environment.
According to government data, India's total defense expenditure was Rs 2.94 lakh crore in 2015-16, which has increased to Rs 7.85 lakh crore in 2025-26. At the same time, capital expenditure for defense modernization has also increased from Rs 83,614 crore to Rs 2.31 lakh crore.
Prime Minister Modi said that due to India's strong manufacturing, service sector and MSME, the country is in a better position to enter into Free Trade Agreements (FTA) with 38 countries. He said that these FTAs will help in opening new markets for MSMEs in sectors like textile, leather, chemical, handicraft, and gems.
Taking aim at the previous UPA government, PM Modi said that due to economic mismanagement at that time, India's global negotiating position was weak and many agreements remained incomplete.
Prime Minister Modi said that the private sector will play an important role in making India a developed nation. He appealed to the industry not to worry only about profits, but to increase investment in research, supply chain, quality and innovation.
He said India's next economic leap will depend on massive private sector investment and global competition. Also, the gains from productivity should also be shared with the employees.
Prime Minister Modi described India as a global leader in the digital sector and said that platforms like UPI have given a new identity to the country. He said that India is creating a strong base for Artificial Intelligence (AI), in which computing capacity and data centers are being expanded.
He said that this sector will create massive employment opportunities for the youth and give a new direction to India's economy.
Prime Minister Modi reiterated that investor confidence has increased due to political stability and reforms and this will take India forward in the direction of becoming a developed nation.
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