Daijiworld Media Network – New Delhi
New Delhi, Feb 15: Prime Minister Narendra Modi on Sunday underscored the need for comprehensive defence modernisation, asserting that the government has a duty to strengthen the armed forces in line with “current realities”, as reflected in the enhanced allocation in the Union Budget 2026.
In an interview, the Prime Minister said this year’s Budget signals India’s preparedness to transition into a developed nation.
“India has to be strong and prepared at all times, and that is what we are doing. This year's budget reflects India's yearning to become a developed nation. The Budget is not a ‘now or never’ moment born out of compulsion, but a ‘we are ready’ moment born out of preparation and inspiration,” he said.
As per Budget 2026, the government has raised the overall defence allocation to Rs 7.85 lakh crore for the current financial year, up from Rs 6.81 lakh crore last year — marking an increase of nearly 15 per cent.
A key highlight is the 28 per cent surge in defence capital expenditure, which has been increased to Rs 2.31 lakh crore from Rs 1.80 lakh crore in the previous year. The higher capital allocation signals a strong thrust on procurement of advanced weapon systems and promotion of indigenous defence manufacturing.
In January, India approved a Rs 3.25 lakh crore agreement with France to procure 114 Rafale fighter jets, one of the largest combat aircraft acquisitions in the country’s history.
Reiterating the government’s commitment to national security, Modi said it would “do whatever it takes to support the country's defence forces and strengthen them”, stressing that modernisation is crucial amid evolving geopolitical and security challenges.
According to official data, total defence expenditure has risen from Rs 2.94 lakh crore in 2015–16 to Rs 7.85 lakh crore in 2025–26. Defence capital expenditure has grown from Rs 83,614 crore in 2015–16 to Rs 2.31 lakh crore in 2025–26.
On economic policy, Modi said stronger performance in manufacturing, services and MSMEs has enabled India to negotiate Free Trade Agreements (FTAs) with 38 countries from a position of strength.
“Our FTAs are designed to expand market access for MSMEs in textiles, leather, chemicals, handicrafts, gems and other sectors,” he said.
Taking a swipe at the previous United Progressive Alliance government, the Prime Minister alleged that economic mismanagement had weakened India’s negotiating capacity.
“During UPA rule, talks would begin and then break down; little real substance was achieved despite long negotiations,” he said.
Calling reform a core commitment of his government, Modi said the private sector would play a decisive role in driving the next phase of India’s economic transformation.
He urged industry leaders to move beyond protecting profit margins and invest aggressively in research and development, supply chains and quality enhancement.
“The next leap to Viksit Bharat will depend on bold investment by the private sector in innovation, long-term capacity and global competitiveness,” he said, adding that productivity gains must be shared fairly with workers.
Highlighting India’s digital transformation, the Prime Minister described the country as a global leader powered by reforms such as the Unified Payments Interface platform.
He said India is laying the foundation for a thriving artificial intelligence ecosystem by expanding computing power and data centre infrastructure, which he termed a “massive job creator” for the country’s young workforce.