85% of The Army Acquisitions now Indigenous – COAS
The Union Budget 2025-26 allocates ₹6,81,210.27 crore for the Ministry of Defence (MoD), comprising 13.45% of the total Union Budget.
This is a 9.53% increase over the FY 2024-25 budget. 75% of the modernisation budget, of ₹1,11,544.83 crore, will be for procurement from domestic sources, with ₹27,886.21 crore specifically for procurement from domestic private industries.
General Upendra Dwivedi has clearly announced that 85% of the army’s acquisitions are now indigenous, which is a significant advancement towards self-reliance in defence production.
Dwivedi highlighted the growing emphasis on self-reliance, noting the considerable revenue and capital requirements for UAVs, counter-UAVs, and aviation.
The army is also planning to upgrade existing equipment and platforms through collaboration with the Indian industry, with a focus on ATGMs and MANPATS.
Chief stated that self-reliance remains the army’s top priority, ensuring all future acquisitions will have a “Made in India” focus. A notable achievement is the Advanced Light Helicopter (ALH), which has flown 40,000 hours in the last two years with only one minor issue.”
We are also looking at ATGMs and MANPATS. These are the issues we are looking at immediately. As far as the upgradation of various equipment and platforms are concerned, we are looking for great support from the Indian industry..,” General Dwivedi said.
The largest share, 46%, of the new defence budget will go to the armed forces. Capital outlay for defense services, including research and development, will receive 26%, and defense pensions will receive 24%. The remaining 4% of the budget is for civil organizations under the MoD.
Out of the capital outlay expenditure, ₹1,49,577 crore is allocated to capital acquisitions, which the MoD calls the modernization budget, while the remaining ₹31,300 crore is for R&D and the “creation of infrastructural assets across the country”.
The MoD has earmarked 75% of the modernisation budget, approximately ₹111 lakh crores, for procurement from domestic sources, with the remaining 25% allocated for procurements from local private-sector companies.
A total of ₹1,11,544.83 crore, which constitutes 75% of the modernisation budget, has been allocated for procurement through domestic sources.
Furthermore, ₹27,886.21 crore, or 25% of the domestic share, has been specifically earmarked for procurement from domestic private industries.
The funds are intended to support military jointness and the development of new military technologies, including cyber, space, artificial intelligence, and robotics.
The Ministry of Defence has declared FY 2025-26 as the ‘Year of Reforms’, with a focus on simplifying defence procurement procedures for optimal resource utilisation.
Increase to DRDO The budgetary allocation to the Defence Research and Development Organisation (DRDO) has been increased to ₹26,817 crore in FY 2025-26 from ₹23,856 crore last year.
