The world is once again on the boil of geopolitics. The Russia-Ukraine war continues, the US-Venezuela tension is raising new questions, and Donald Trump’s aggressive stance on Iran and Greenland is shaking the global balance. In such an environment, the big question is: Will India increase defense spending in Budget 2026–27? There is pressure on fronts like China, LAC and Arunachal. Geopolitics is not a reaction, but a calculated strategy. Hence MoD’s demand of 20–25% hike is in discussion. This will promote modernisation, AI, drones, missiles and indigenous manufacturing. Salaries and pensions are heavy, yet 75% of modernization being reserved for Indian firms gives strength to Atmanirbhar Bharat.