India on Saturday proposed defence spending of 6.81 trillion rupees ($78.70 billion) for the 2025-26 fiscal year, up 9.5% from the previous year's initial estimates, with most eaten up by wages and pensions rather than acquiring new weapons.

Budget documents show that the Centre has allotted Rs 6.81 lakh crore ($78 billion) for defence spending in Union Budget 2025 – a 9.5 per cent increase over last year. India is poised to spend 1.9 per cent of its projected gross domestic product (GDP) on defence.

With Finance Minister Nirmala Sitharaman set to present the Union Budget on February 1, 2025, the defence sector is anticipating strong support in key areas. Expectations include a greater push for local manufacturing,