Overview

• New five-year plan will raise India’s defence expenditure from 1.9% to 2.5% of GDP, with flexibility to seek additional allocations during revised estimates.
• The Ministry of Defence targets signing Rs 2 lakh crore in FY26 deals, including Apache helicopter imports and upcoming AMCA fifth-generation fighter contracts.
• Operation Sindoor’s success in deploying indigenous systems has triggered record export inquiries and elevated global demand for Indian defence products.
• Procurement reforms aim to compress major contract timelines from six to two years and harness private-sector and startup capabilities through an R&D-production model.
• Defence Accounts Department is rolling out AI-driven automation, emergency procurement measures and digital platforms to accelerate budget absorption and readiness.