By Admin 
Defense Budget 2025: It is believed that the foreign policy of any country is as strong as its defense system. A country which has strong military and security capabilities can present its interests on the international stage without any pressure. This is the reason why today almost all the big countries of the world are spending heavily on their defense budget.
America has proposed to increase its defense budget to $ 1.5 trillion for the year 2027, which is about 50 percent more than earlier estimates. At the same time, India’s neighbor China is also continuously increasing its military expenditure. In the financial year 2025-26, China spent about $ 245 billion on defense budget.
India’s defense expenditure: position against GDP
If we look at the trend of India’s defense expenditure in the last 15 years, there is a continuous decline in its ratio to GDP. Defense expenditure in 2010-11 was 2.71% of GDP.
In 2015-16 it was 2.41%
2.88% in 2020-21
2.21% in 2022-23
1.97% in 2023-24
1.89% in 2024-25
It will reduce to around 1.90% in 2025-26. These figures clearly indicate that despite increasing global tensions, India’s defense expenditure is becoming limited in proportion to GDP.
| financial year | What share of GDP is spent on the budget in percentage? |
| 2015-16 | 2.41 |
| 2020-21 | 2.88 |
| 2022-23 | 2.21 |
| 2023-24 | 1.97 |
| 2024-25 | 1.89 |
Rising global tensions and India’s strategy
Today the global situation is extremely unstable. The wars in Iran, Venezuela, Ukraine and the ongoing tension in the Middle East have deepened the security challenges. In such a situation, the question arises that what strategy should India adopt regarding defense expenditure in Budget 2026? Manish Kumar Gupta, expert in economic matters It is said that now investment in defense sector is not limited to just GDP, employment or trade. This has directly become a measure of India’s strategic power and global influence.
When India exports defense equipment, it not only sells arms, but also establishes itself among the powerful countries of the world. The issue of a strong defense exporting country is heard more seriously in international forums.
Defense sector and economic development
According to Manish Gupta, the confidence expressed by IMF and World Bank regarding India’s growth rate is also largely related to the defense sector. Defense is a high-value manufacturing sector, which integrates technology, MSME and skill development. This reduces imports, increases exports and has a positive impact on the current account balance. At present, the contribution of defense sector in GDP is about 2 percent, which can be taken to 2.5 percent with right policies.
Necessary reforms and challenges
However, some tough decisions are necessary for this.
Transparency in defense procurement process
Control on the problem of ‘lobbying’ and repeated cancellations in the tender system
Share of indigenous products up to 75 percent in army procurement
Cheap loans to MSMEs and guarantee of timely payment
Without these reforms, the idea of a self-reliant defense industry will remain incomplete.
The nature of war has changed
Manish Gupta says that today’s fight is more about data, artificial intelligence and cyber technology than cannon balls. Therefore, special emphasis should be given to AI, cyber security and cutting-edge technology in Budget 2026.
Although defense exports have increased manifold and the target is to reach Rs 50 thousand crore, there is still a huge gap between announcements and ground implementation.
Focus on Air Force and basic industry necessary
There itself Defense expert and retired wing commander Prafulla Bakshi Believes that India will have to pay maximum attention to the Air Force, because the role of Air Force is most important in deciding the beginning and direction of modern war. According to him, it is very important to increase investment on research and development.
Prafulla Bakshi also says that India’s biggest weakness is its basic industrial capacity. Unless the national industry is strong, the defense industry also cannot be strong.
Today India is not able to make many important things like metal-grade engines itself. If we depend on other countries for weapons during war, we will not be able to fight for a long time. Therefore, it is essential to strengthen indigenous industry and manufacturing for long-term security.
Also read: Defense budget: 2.5 times increase in 10 years, ‘Military Dream’ a big challenge amid global situation, know what experts are saying