Defence Min spends over 50% of capital outlay in first half of FY 2025-26
New Delhi: In a bid for defence modernisation and indigenisation, the Ministry of Defence (MoD) on Monday asserted that it has already spent over half of its capital expenditure for the current financial year, reflecting “considerable achievement” in the timely purchase and delivery of critical military equipment.
In accordance with an official release, the ministry has incurred Rs 92,211.44 crore as of September 2025, representing 51.23 per cent of the overall capital expenditure of Rs 1.8 lakh crore in FY 2025–26. The expenditure encompasses key platforms, including aircraft, ships, submarines, land systems, weapon systems, and electronic warfare equipment.
The MoD has pointed out that timely spending is paramount for the delivery of key platforms, which play a role in operational readiness and the strategic capability of the Armed Forces. With large projects in advanced stages of approval, the ministry was optimistic about deploying its appropriated funds by the end of the financial year.
In FY 2024–25, the defence ministry recorded complete utilisation of its capital outlay of Rs 1,59,768.40 crore. The existing outlay of Rs 1.8 lakh crore represents a 12.66 per cent growth over last year’s actual spending, indicating the government’s ongoing interest in enhancing defence capability and infrastructure.
Out of the overall allocation, Rs 1,11,544.83 crore has been set aside for the domestic industry to support India’s vision of self-reliance in the defence sector. Till now, 45 per cent of this fund has already been utilised on domestic procurement, highlighting the government’s initiative to encourage indigenous manufacturing, help MSMEs and start-ups, and advance technological innovation in the country’s defence ecosystem.
In the last five years, capital expenditure on defence services has increased by close to 60 per cent, reflecting India’s emphasis on beefing up its armed forces to meet changing security threats. Recent geopolitical tensions and supply chain attacks emphasise the requirement for investment in cutting-edge military technology and domestic manufacturing.
Defence capital spending has a central function not just in national defence but also in economic growth. It propels research and development, infrastructure development, and high-tech manufacturing — all of which have a multiplier impact on job creation and industry development.
With India having the vision of becoming a defence manufacturing leader and exporter, the quick rate of spending is a testament to the government’s dedication to being ready, self-reliant, and responsive to worldwide defence trends.
