Holding a meeting about India's military future in Jaisalmer, close to the western border, carried its own message. Addressing the Parliamentary Consultative Committee there, Defence Minister Rajnath Singh said India's defence budget for 2026-27 has risen to Rs 7.85 lakh crore, with Rs 2.19 lakh crore earmarked for modernisation and capital procurement.

The headline figure is large, but the more telling point is how the money is being used. Singh stressed that the government has not only increased the modernisation budget year after year but has "also spent it," adding that the armed forces prioritise their needs carefully and use the funds well. Unspent capital budgets have been a long-standing concern in Indian defence planning, so this claim of spending capacity matters as much as the allocation.

Why the focus is shifting to technology

Singh linked the push for modernisation to how wars are now being fought. He said the Russia-Ukraine and Israel-Iran conflicts have shown that drones, missiles and air defence systems increasingly shape the battlefield, and that India's forces must prepare for that reality.

He set out three pillars for modernisation: higher budgetary allocation and capital acquisition, technological advancement, and human resource development. He also made clear that modernisation does not only mean buying advanced weapons. It also means better operational preparedness and skilled personnel. All three services, he said, are carrying out structural and organisational reforms. He pointed to Army formations and platforms such as 'Ashni', 'Bhairon' and 'Shaktibaan' as examples already meeting operational needs.

What the self-reliance numbers really show

The production and export figures Singh presented point to a major change in a decade. Domestic defence output has grown nearly fourfold, from about Rs 46,429 crore in 2014-15 to around Rs 1.78 lakh crore in 2025-26. Exports have grown even faster, by more than 20 times, from under Rs 2,000 crore in 2014 to about Rs 40,000 crore.

The targets for 2029 are Rs 3 lakh crore in production and Rs 50,000 crore in exports. Reaching the production goal would require output to grow by roughly 70 per cent in about three years. The export goal looks closer, needing an increase of around Rs 10,000 crore, which explains why Singh is confident it will be exceeded.

A large part of this change depends on industry beyond the government. Singh said the DRDO is developing new systems, weapons and missiles, and the government is offering a level playing field to private companies, from MSMEs to large manufacturers. He said his visits to private defence facilities had shown him their growing capabilities.

The bigger picture

The minister said the long-term goal is an indigenous defence ecosystem that reduces strategic dependence on foreign suppliers and strengthens India's strategic autonomy. For a country that has long been among the world's largest arms importers, the direction is significant.

Singh said the Jaisalmer meeting helped members understand ground realities, particularly in border and farming areas, and assured them their suggestions would be considered. The session ended with a detailed presentation on the modernisation of the Indian armed forces.

The real test now is whether rising budgets keep turning into delivered capability, and whether domestic industry can grow fast enough to meet the 2029 targets.