India is investing more in its military than ever before. Defence spending is rising, Indian companies are producing more military equipment, and the country is gradually strengthening its position in the global defence industry. Yet, behind these achievements lies an important question that deserves serious attention: Is India's military modernisation happening fast enough to meet the security challenges of today and tomorrow?
The question is not simply about how much money India spends on defence. It is about whether that money is being converted into stronger military capabilities, advanced technology, reliable equipment and better operational readiness.
India faces a complex security environment. Its geographical position, unresolved border challenges, changing regional alliances and developments in modern warfare demand constant preparedness. Military power is no longer measured only by the number of soldiers, tanks, fighter aircraft or warships a country possesses. It increasingly depends on technological superiority, intelligence, cyber capabilities, space-based systems, precision weapons and the ability to respond quickly to unexpected threats.
India has made meaningful progress in recent years. However, procurement delays, ageing equipment, dependence on certain foreign technologies and gaps in defence research continue to raise questions about whether the pace of modernisation matches the country's strategic needs.
The real challenge is not just to build a stronger military, but to ensure that it is prepared for the nature of warfare that is emerging.
1. A Bigger Defence Budget, But Is It Delivering Enough?
The Union Budget 2026–27 allocated approximately ₹7.85 lakh crore to the Ministry of Defence, making it one of the largest allocations among government ministries.
According to the Ministry of Defence, this represents a 15.19% increase over the previous financial year's Budget Estimate. However, it is important to understand how this figure is calculated. Compared with the revised estimate for 2025–26, the increase is approximately 7.12%. These percentages use different comparison figures, so they should not be confused.
More importantly, the budget provides substantial resources for modernisation. More than ₹2.19 lakh crore has been allocated under the capital expenditure head for the defence services, including approximately ₹1.85 lakh crore for capital acquisition.
These funds are intended to support the purchase of advanced aircraft, weapons, warships, submarines, drones and other essential military equipment.
The increase is encouraging, but a bigger budget does not automatically mean a stronger military. What matters is how quickly new equipment reaches the armed forces, whether it meets operational requirements and whether sufficient resources are available to maintain it.
India must therefore look beyond the headline budget figure. The real measure of success should be the capabilities delivered to the Army, Navy and Air Force.
Source: Ministry of Defence – Defence in Union Budget 2026–27. See also PRS Legislative Research – Defence Budget Analysis 2026–27.
2. Modernisation Gaps Across the Armed Forces
India's three services face different challenges, but all require continuous modernisation.
The Army needs modern weapons, better surveillance systems, protected vehicles, advanced communication equipment and reliable logistics. The Air Force needs sufficient numbers of modern fighter aircraft, while the Navy must continue expanding its ability to protect India's maritime interests and maintain a strong presence in the Indian Ocean.
Some existing figures show why these requirements cannot be ignored.
According to the 2026–27 defence analysis published by PRS Legislative Research, only 15% of the Indian Army's equipment belonged to the new-generation category in an assessment by the Standing Committee on Defence in 2023. The ideal equipment mix suggested in that assessment was 30%. Meanwhile, 45% of the Army's equipment was classified as older-generation equipment.
The Indian Air Force also faces a numerical challenge. As of December 2024, it had 31 active fighter squadrons against an authorised strength of 42.
These figures are not a complete picture of India's current military readiness, and their respective assessment dates matter. However, they highlight the scale of the modernisation challenge.
Having capable personnel is essential, but they must also have the equipment, technology and infrastructure required to perform their duties effectively. Modernisation cannot remain limited to purchasing a few advanced platforms. It must reach every level of the armed forces.
Source: PRS Legislative Research – Demand for Grants 2026–27: Defence.
3. Defence Procurement Delays: When Time Becomes a Security Concern
One of the biggest challenges facing India's military modernisation programme is the time required to purchase and introduce new equipment.
Defence procurement is naturally complicated. Before a military system can be purchased, it must pass through technical assessments, financial approvals, testing, negotiations and contractual procedures. These steps are important because the equipment must meet strict standards of safety, reliability and performance.
However, when the process takes too long, the consequences can extend far beyond administrative inconvenience.
According to PRS Legislative Research, citing the Ministry of Defence, acquiring defence equipment can take approximately 19 to 26 months. The research also notes that a 2025 Comptroller and Auditor General (CAG) finding identified delays beyond stipulated delivery schedules in 72% of the contracts examined.
This raises an important concern: military technology evolves rapidly, but procurement systems cannot afford to move at a pace that allows essential equipment to become outdated before it even reaches the armed forces.
A delay in delivering a military aircraft, surveillance system, weapon platform or naval vessel can affect operational planning and create additional pressure on existing resources.
India needs a more efficient acquisition system, with clearly defined responsibilities, realistic deadlines and regular project reviews. Government departments, defence manufacturers and military institutions must work together more effectively.
Faster procurement should never mean ignoring technical standards or financial accountability. It should mean removing unnecessary delays while maintaining the quality and transparency that national security demands.
Source: PRS Legislative Research – Defence Procurement and Delays.
4. Self-Reliance: India Must Become More Than a Defence Buyer
For decades, India has depended on foreign countries for several important defence platforms, technologies and components. Such dependence can create difficulties, particularly when international relations change or global supply chains are disrupted.
This is why developing India's domestic defence industry is so important.
The government's emphasis on Aatmanirbhar Bharat in defence is a significant step towards building long-term technological and industrial strength. Domestic manufacturing can improve supply-chain resilience, create skilled employment and give Indian industries opportunities to develop products for both national and international markets.
The Union Budget 2026–27 earmarked approximately ₹1.39 lakh crore for procurement from domestic defence industries. This represents a substantial commitment to Indian manufacturers.
There are also encouraging results from the industry. India's defence production reached approximately ₹1.78 lakh crore in FY 2025–26. Defence exports reached a record ₹38,424 crore in the same financial year, representing a 62.66% increase over the previous year's exports of ₹23,622 crore.
These figures show that Indian manufacturers are gaining a stronger position in the international defence market.
However, self-reliance must be measured by more than production and export figures.
A country cannot claim complete technological independence simply because it assembles military equipment domestically. The ability to design, manufacture, test, maintain and upgrade critical systems within the country is equally important.
India still relies on foreign suppliers for certain critical components and advanced technologies. PRS has also highlighted India's position as the world's second-largest arms importer during 2020–24.
Reducing this dependence will require stronger domestic research, advanced manufacturing facilities and greater involvement from private companies, start-ups and research institutions.
The ultimate goal should be clear: India should be able to develop and maintain its most important military capabilities without becoming unnecessarily dependent on external suppliers.
Sources: PIB – Defence Exports Reach a Record ₹38,424 Crore in FY 2025–26 | PIB – The Defence Decade | PRS Legislative Research.
5. Research, Innovation and the Technologies That Will Shape Future Warfare
The battlefield of the future will look very different from the battlefield of the past.
Artificial intelligence, autonomous drones, cyber warfare, satellite-based surveillance, electronic warfare and advanced missile systems are changing how military operations are planned and conducted.
In such an environment, the strength of a country's military will increasingly depend on its ability to develop and use advanced technology.
India has already taken steps in this direction. The Defence Research and Development Organisation (DRDO) plays an important role in developing indigenous military technologies, including missiles, aircraft systems, combat vehicles and other strategic equipment.
For FY 2026–27, the allocation to DRDO has increased to approximately ₹29,100 crore, compared with ₹26,816.82 crore in the previous year's Budget Estimate.
This is an important investment. However, the wider picture deserves attention.
PRS Legislative Research estimates that defence-related research and development will account for approximately 3.7% of total defence expenditure in 2026–27, compared with 4.7% in 2014–15.
In other words, the amount allocated to research has increased, but research spending has not kept pace with the overall growth of defence expenditure when measured as a share of the total.
This deserves serious consideration.
India needs to invest consistently in advanced research, rather than relying primarily on the purchase of technologies developed elsewhere. Universities, private industries, start-ups and government research organisations should work more closely to turn scientific ideas into practical military capabilities.
The country should also give greater attention to testing, experimentation and the development of specialised expertise.
A strong military is not built only in factories. It is also built in laboratories, research centres and institutions where the technologies of tomorrow are being developed.
Sources: Ministry of Defence – Union Budget 2026–27 | PRS Legislative Research – Defence R&D Analysis.
6. Balancing Defence Spending Between Personnel and Modern Equipment
Another important issue is how India's defence budget is distributed.
Maintaining a large military requires significant expenditure. Salaries, pensions, training, logistics, maintenance and operational responsibilities are essential parts of national defence. The welfare of serving personnel and veterans must remain a priority.
However, military preparedness also requires continuous investment in new equipment and technology.
According to PRS Legislative Research, salaries and pensions are estimated to account for approximately 44% of India's total defence expenditure in 2026–27. Meanwhile, capital outlay accounts for around 29% of the defence budget.
The Standing Committee on Defence had previously recommended an indicative revenue-to-capital expenditure ratio of 60:40, which would give capital outlay a 40% share.
This difference highlights the financial challenge facing policymakers.
India must maintain a sustainable balance between personnel welfare, present operational requirements and future military capabilities. Simply reducing spending on personnel is neither a practical nor a responsible solution.
Instead, the government needs better long-term financial planning, efficient resource utilisation and greater attention to modernisation projects that deliver lasting value.
A modern military requires trained people, reliable equipment and sufficient resources to maintain both.
Source: PRS Legislative Research – Composition of the Defence Budget 2026–27.
7. What India Must Do to Accelerate Military Modernisation
India has the financial resources, industrial potential, scientific talent and strategic motivation to build a significantly stronger defence capability. The challenge is to bring these strengths together through effective planning and implementation.
Several priorities deserve sustained attention.
First, procurement must become more efficient. Projects should have realistic deadlines, clear accountability and stronger monitoring. Delays that can be prevented should not become a normal part of defence acquisition.
Second, domestic research must receive long-term support. India should invest in technologies such as artificial intelligence, autonomous systems, cyber defence, advanced sensors, electronic warfare and next-generation aerospace systems.
Third, indigenous manufacturing must focus on quality, not just quantity. Equipment produced in India should meet demanding standards of reliability, safety and performance. Domestic industries must also develop the ability to manufacture critical components rather than depending heavily on imported technologies.
Fourth, the three armed services must work together more effectively. Modern warfare requires coordination between the Army, Navy and Air Force, particularly in intelligence, surveillance, communication, logistics and joint operations.
Fifth, defence planning must look beyond annual budgets. Major military projects often require years of research, development and production. Stable funding and long-term planning can help manufacturers invest confidently and deliver equipment more efficiently.
Finally, parliamentary oversight and independent performance assessments must remain important parts of defence management. Every major allocation should have clearly defined objectives, and progress should be measured through actual capabilities delivered rather than announcements alone.
Conclusion: India Needs Not Just a Larger Military Budget, but Faster Results
India has made considerable progress in strengthening its defence capabilities. Rising defence expenditure, expanding domestic manufacturing, record defence exports and greater investment in research demonstrate that military modernisation is receiving serious attention.
Yet, progress should not be confused with completion.
Ageing equipment, fighter-squadron shortages, procurement delays, dependence on certain foreign technologies and the need for stronger research investment remain important concerns. These challenges cannot be addressed through budget increases alone.
The most important question is whether India's military can receive the equipment, technology and infrastructure it needs at the speed required by today's security environment.
The world is changing rapidly. Military technologies are evolving, regional security calculations are shifting and the nature of warfare is becoming increasingly complex. India cannot afford to modernise only when a problem becomes urgent. Preparedness must be continuous.
India does not need to choose between building a stronger military today and investing in the military of tomorrow. It must do both.
The country has the potential to become a major centre of defence technology, manufacturing and innovation. But achieving that ambition will require faster decisions, stronger institutions, greater research investment and consistent execution.
Ultimately, national security is not measured by the amount of money announced in a budget. It is measured by the strength, readiness and reliability of the capabilities that money creates.
India's military modernisation is moving forward. The question is whether it is moving fast enough. The answer will depend not on promises, but on results.
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