India boosts defence industry with record budget after Operation Sindoor

At the North Tech Symposium 2026 in Prayagraj, Defence Minister Sanjay Seth highlighted the success of Operation Sindoor and praised the role of indigenous weapons, MSMEs and start‑ups in strengthening India’s military capabilities. He said the operation demonstrated the effectiveness of Made‑in‑India equipment and urged the industry to stay ahead of the technology curve.

Finance Minister Nirmala Sitharaman presented a Union Budget allocating an all‑time high ₹7.85 lakh crore to the Ministry of Defence for FY 2026‑27 – a 15.19% year‑on‑year increase and the largest share of central spending. Seventy‑five percent of the capital acquisition of ₹1.85 lakh crore is earmarked for domestic manufacturers, with an order backlog 4.9 times trailing revenue. The budget was shaped by the emergency procurement triggered by Operation Sindoor in May 2025, which accelerated orders for missiles, electronic warfare and naval systems, including the BrahMos missiles deployed by the Army and Air Force.

Analysts view the heightened budget and policy support as a major investment opportunity for Indian defence companies such as HAL, BEL, Mazagon Dock and others, underlining the sector’s fastest growth trajectory since independence.