The process of acquisition and induction of aircraft and aero engines, land-based systems, electronic warfare equipment, armaments, and projectiles for the Indian security forces appear to be occuring at a rapid pace as the defence ministry has utilised Rs 92,211.44 crore (more than 50 per cent) of the capital outlay of Rs 1,80,000 crore for the financial year 2025-26 by the end of September 2025.
Capital expenditure is crucial for the defence sector as it funds the acquisition of new assets, research and development, and infrastructural development in the border areas.
The ministry had utilised 100 per cent of the capital expenditure amounting to Rs. 1,59,768.40 crore in the last financial year.
The use of over 50 per cent of capital outlay for the sector will result in ensuring timely delivery of critical platforms such as aircraft, ships, submarines, and weapon systems required for the modernisation of the country's armed forces in the coming year.
The ministry said with this pace of expenditure and big-ticket projects which are at advanced stages of approval, it is committed to fully utilising the allocation under the capital head. The ministry is also working on the budgetary projections to be discussed for revised estimates.
The defence ministry said it has been consistently strengthening the domestic industries by earmarking funds for procurement from them since the financial year 2020-21.
For FY 2025-26, Rs 1,11,544.83 crore has been earmarked for the domestic industry. Major expenditure to the extent of 45 per cent has been recorded till date out of the funds earmarked for domestic procurement.
