New Delhi: In a significant boost to the country’s maritime capabilities, the Indian Navy has received its highest-ever budget allocation of Rs 97,149.80 crore for the fiscal year 2025-26. This marks a notable increase from the previous year’s allocation of Rs 91,572.53 crore, accounting for 19.76 per cent of the overall defence budget of Rs 4,91,732.30 crore.
For the first time, the Navy’s budget has surpassed the Rs 95,000 crore mark, underscoring the government’s focus on strengthening maritime security. In comparison, the Indian Air Force has been allocated Rs 1,18,511.68 crore, constituting 24.10 per cent of the defence budget, while the Indian Army has received Rs 2,39,600.68 crore, comprising 48.72 per cent of the total expenditure.
The capital allocation for the Navy stands at a record Rs 63,000 crore out of the total capital budget of Rs 1,80,000 crore, which represents 35 per cent of the total capital expenditure. This is nearly double the capital budget from FY 2021-22, which stood at Rs 32,050.02 crore. The Indian Air Force and the Indian Army have been allocated Rs 64,811.38 crore (36 per cent) and Rs 33,400.68 crore (18.55 per cent) respectively.
On the revenue front, the Navy’s allocation has reached Rs 34,149.80 crore out of the total revenue budget of Rs 3,11,732.30 crore, accounting for 10.95 per cent. This marks the highest revenue budget share for the Navy to date, crossing the Rs 32,000 crore threshold for the first time. The Indian Air Force has received Rs 53,700 crore (17.22 per cent) while the Indian Army continues to dominate with Rs 2,06,200 crore (66.15 per cent) in revenue allocation.
Despite a minor adjustment in the capital-to-revenue ratio to 64.85:35.15, down from last year’s 65.22:34.78, the Navy continues to maintain the healthiest ratio among the three services. In comparison, the Indian Air Force has a ratio of 54.69:45.31, while the Indian Army’s stands at 13.94:86.06, reflecting its higher operational expenses.
The budget places a strong emphasis on modernising the Armed Forces, with Rs 1.80 lakh crore earmarked for capital outlay. Of this, Rs 1.48 lakh crore has been allocated for the acquisition of advanced technologies, weapons, and platforms. Additionally, Rs 31,277 crore has been set aside for research and development (R&D) and infrastructure development.
A substantial Rs 24,390 crore has been allocated specifically for the naval fleet, facilitating the procurement of new platforms and the development of existing ones to enhance operational capabilities. Emerging technologies, including Artificial Intelligence (AI), Machine Learning, Robotics, and Cyber and Space technologies, have also been prioritised to future-proof India’s defence framework. The budget includes a 12 per cent hike in Defence R&D allocation, with Rs 26,816 crore dedicated to funding cutting-edge projects. A significant portion of this will go towards capital expenditure, aimed at developing indigenous solutions and reducing dependence on foreign imports.
Private sector participation has also been encouraged, with Rs 1.11 lakh crore of the modernisation budget earmarked for domestic procurement. Out of this, Rs 27,886 crore is specifically designated for purchases from domestic private industries, reflecting the government’s push towards fostering a self-reliant defence ecosystem.
The significant budget allocation underscores India’s strategic focus on bolstering its maritime strength, advancing technological innovation, and enhancing the operational readiness of its forces.