Parliamentary Standing Committee on Defence Recommendations
The Parliamentary Standing Committee on Defence emphasized the importance of adequate budgetary provisions for research and development to maintain optimal combat preparedness of the armed forces.
Future Warfare Fund and Technologies
- The Ministry of Defence has established a "future warfare fund" within the armed forces.
- A "future analysis group" is proposed to study emerging technologies.
- Key emerging sectors in defence include:
- Robotics Automation
- Velocity, crucial for hypersonic drones
- Intelligence Warfare, encompassing:
- Artificial Intelligence
- Data Analytics
- Machine-learning
Budget Considerations
The committee noted the unpredictability of the modernization budget and stressed the necessity of understanding emerging technological trends impacting warfare.
The Ministry is actively adopting new warfare technologies.
Defence Budget for FY26
- Total allocated defence budget: ₹6.81 trillion, approximately 13.45% of the central government expenditure.
- The defence budget saw a Compound Annual Growth Rate (CAGR) of 7.94% from FY21 to FY26, surpassing the inflation rate annually.
- FY26 budget growth, adjusted for inflation (4.90% CPI), is 6.16%, showing improvement over FY25.
- Recommendation for additional funds allocation at the revised estimate stage if necessary, to maintain optimal combat readiness.
- 75% of the modernization budget is earmarked for procurement from indigenous sources, minimizing foreign-exchange risk.
Additional Insights
India's defence spending increased due to Operation Sindoor. The Defence Research and Development Organisation was allocated ₹26,816.82 crore for FY26.
