Archive · 2 Feb 2026
India's 2026-27 Budget Focuses on Defence, Tech, and Exports
The Indian government has announced a big budget for the year 2026-27.
They are spending a lot more money on defence, which is ₹7.84 lakh crore, to make India stronger and more self-sufficient in making its own defence equipment.
The budget also focuses on making India a leader in technology, especially in semiconductors and biopharma.
There are special programs like the India Semiconductor Mission 2.0 and the Biopharma SHAKTI programme to help with this.
The budget also helps exporters by making it easier for them to import certain inputs without paying duties.
This is good for sectors like leather, seafood, and electronics.
The government also wants to support small and medium businesses, farmers, and other important parts of the economy.
Overall, the budget is meant to make India stronger, more self-reliant, and a better place for businesses and people.
The Indian government allocated ₹7,84,678 crore for defence in the 2026-27 budget, a 15% increase from the previous year, focusing on modernisation and self-sufficiency.
The budget expanded the India Semiconductor Mission 2.0 and the Biopharma SHAKTI programme to promote innovation-led manufacturing and digital self-reliance.
Measures were introduced to boost the fisheries sector, including duty exemptions for fish caught by Indian vessels and increased limits for duty-free imports of specified inputs.
The budget included initiatives to support the animal husbandry sector, such as a credit-linked subsidy programme and the scaling-up of veterinary professionals.
The Electronics Components Manufacturing Scheme (ECMS) allocation was nearly doubled to ₹40,000 crore, and a tax clarification was introduced to allow foreign companies to provide capital equipment to Indian contract manufacturers without triggering income tax liability.
The budget eliminated duties on several goods to improve market access for US exporters and provided support for Indian exporters struggling with global trade disruptions.
The budget allocated ₹10,000 crore for the biopharma sector and ₹12,100 crore for the Ex-Servicemen Contributory Health Scheme, showing a commitment to healthcare and welfare.
- Who
- Indian Government, Finance Minister Nirmala Sitharaman, Defence Minister Rajnath Singh, Commerce Secretary Rajesh Agrawal, Commerce Minister Piyush Goyal
- What
- Increased defence budget, focus on technology and innovation, self-sufficiency in defence and semiconductor production, support for exports and various sectors
- When
- February 1, 2026
- Where
- India
- Why
- To strengthen India's defence capabilities, promote self-reliance in technology, boost the semiconductor and fisheries sectors, and support various industries and exports
- Defence Budget 2026-27
- ₹7,84,678 crore
- Capital Expenditure
- ₹5.95 lakh crore
- Modernisation Funds Increase
- 24%
- Aircraft and Aero Engines Allocation
- ₹63,733 crore
- Naval Fleet Allocation
- ₹25,023 crore
- Semiconductor Mission 2.0
- Expanded in Budget 2026-27
- Biopharma SHAKTI Programme
- Highlighted in Budget 2026-27
- DRDO Spokesperson
- Binoy Kumar Das (Joint Director)
- DRDO Focus Areas
- Next-generation technology, semiconductor technology, self-sufficiency
- Key Technologies
- Gallium Nitride (GaN) technology, semiconductor chips
- ECMS Allocation
- ₹40,000 crore
- Leather Exports
- USD 3.3 billion (April-December 2025-26)
- Duty-Free Inputs for Seafood
- Increased to 3% of FOB value
- Biopharma Sector Allocation
- ₹10,000 crore
- Ex-Servicemen Health Scheme
- ₹12,100 crore (45.49% increase)
Sources
Budget has never been a constraint for DRDO: Joint director BK Das
Beyond territorial waters: How Union Budget 2026-27 reshapes India’s billion-dollar seafood industry
Strengthening India’s technology and innovation ecosystem
Budget 2026-27: Defence allocation jumps around 15% to ₹7.84 lakh crore, modernisation funds up by 24%
Agriculture, rural sectors may have to wait for another day
Budget has never been a constraint for DRDO: Director general BK Das
Budget to spur overall growth of Northeast: Industry bodies
Defence budget strengthens security-development-self-reliance balance: Rajnath Singh
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Defence Budget 2026: Retired Brigaider Suyash Sharma Analyses Key Provisions
From aspiration to achievement: Budget 2026 charts India’s path to Viksit Bharat
