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Defence Budget & Aatmanirbharta Drive

India's FY2026-27 defence budget, the first tabled after Operation Sindoor, is the largest ever handed to any ministry: Rs 7.85 lakh crore, roughly a fifth higher than the previous year and about 14.67% of all central spending. The sharpest jump is the capital pot for new kit — Rs 2,19,306 crore, up nearly 22% — with three-quarters of acquisition money ring-fenced for Indian firms. On 18 July 2026 the Raksha Mantri put fresh goalposts on the drive: domestic production crossing Rs 2 lakh crore in FY2026-27, then Rs 3 lakh crore by 2029, with exports aimed at Rs 50,000 crore that same year. A 17 August contract leases two MQ-9B Sea Guardian drones for the Navy for 30 months at about Rs 1,943 crore. Late August then brought a run of indigenous milestones: DRDO's conventional missile technologies opened to Indian firms, the vessels Mangrol, Nipun and ICGS Ajit were handed over, and ground was broken on a tank-overhaul plant at Jabalpur and five shipyard and forging projects in West Bengal.

Last updated 27 August 20268 min read
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Added the late-August 2026 self-reliance moves: the Raksha Mantri cleared transfer of DRDO technology for all conventional missile systems to Indian industry (25 Aug), three indigenous vessels reached the Navy and Coast Guard (ASW craft Mangrol, diving support vessel Nipun, patrol vessel ICGS Ajit), a Rs 472 crore T-72/T-90 overhaul plant broke ground at Jabalpur, GRSE and Yantra India began Rs 3,500 crore of expansion in Bengal, and CSIR-NAL unveiled three small gas-turbine engines for drones.

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