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785: HIGHLIGHTS & ANALYSIS: DEFENCE BUDGET 2026–27

 

Finance Minister Nirmala Sitharaman presented the Indian Defence Budget for the Financial Year 2026 on 27  February 1, 2026.

 

 

Overall Defence Allocation: A Record Increase

India’s defence spending for FY 2026–27 has been set at approximately ₹7.85 lakh crore, marking a roughly 15% increase over the previous year’s allocation (FY 2025–26: ₹6.81 lakh crore).

Defence remains one of the top-funded ministries in the budget, reflecting strategic priority. This is one of the largest-ever defence outlays in absolute terms.

Defence spending is now close to 1.99%–2.0% of India’s projected GDP, reversing the recent downtrend in the defence-to-GDP ratio.

Maintaining near-2% of GDP aligns India with many major powers and signals sustained political backing for defence preparedness.

 

 

Strategic Drivers Behind the Budget

The Budget is the first after Operation Sindoor.

Rising tensions with China and Pakistan, and an evolving security environment, have pressured India to enhance deterrence and capability.

 

Capital vs Revenue Expenditure: Modernisation Takes Priority

Capital allotment is ₹2.19 lakh crore, up around 22%.

Supports next-gen fighter jets, drones, submarines, and emergency arms post-Operation Sindoor.

Central allocations within this include ₹63,733 crore for aircraft & aero engines and ₹25,023 crore for strengthening the naval fleet.

Also, ₹0.29 lakh crore for DRDO (up from ₹0.27 lakh crore) and ₹0.07 lakh crore for Border Roads Organisation (BRO).

Emergency Procurements: Significant funds are earmarked to replenish stockpiles (ammunition, spares, and fuel) depleted during Operation Sindoor.

This shows a strong push to modernise armed forces, including fighter jets, aeroengines, naval platforms, and unmanned systems, all of which are vital to addressing future capability gaps.

 

 

Revenue Expenditure (Operations & Pensions)

Revenue expenditure (payroll, maintenance, operations) remains the bulk of the budget, including ₹1.71 lakh crore for pensions and other recurring costs.

Revenue Expenditure: 3.6546, 57% (20.17% for sustenance/ops + 26.40% for pay/allowances) ₹1.58 lakh crore for operations, maintenance, stores, and spares. Up 17.24% from FY 2025-26 BE, emphasising operational readiness.

Pensions: 1.712, 84% for over 34 lakh pensioners via SPARSH system. Up 6.56% from FY 2025-26 BE. Other (Civil Organisations, ECHS, etc.) 0.29 (approx.)3.64%Includes ₹0.12 lakh crore for Ex-Servicemen Contributory Health Scheme (ECHS), up 45.49% from FY 2025-26 BE and over 300% from FY 2021-22.

Agnipath Scheme: Allocation for the scheme surged by 51% (to ₹15,173 crore), signalling the maturing of the new HR model for the armed forces.

 

 

Boost to Self-Reliance (Atmanirbhar Bharat)

This budget reflects a strategic shift towards self-reliance (Aatmanirbhar Bharat), with 75% of capital acquisitions earmarked for domestic industries, including private sector involvement.

It also includes provisions for emergency procurements post-Operation Sindoor, enhanced R&D, and the development of border infrastructure.

Customs Duty Exemptions: Basic Customs Duty (BCD) is waived on raw materials and components imported for the manufacture and maintenance of aircraft parts, as well as for Maintenance, Repair, and Overhaul (MRO).

Impact: This is designed to lower input costs for Defence PSUs and private players, thereby turning India into a regional hub for aircraft maintenance.

The defence budget-linked allocation supports indigenous manufacturing and R&D.

DRDO & iDEX: The R&D budget increase supports next-gen tech like swarm drones, AI-enabled electronic warfare (EW), and hypersonic missiles.

The budget reinforces India’s technology and production push in semiconductors, deep-tech systems, and defence industrial corridors.

This dovetails with broader reform goals,  reducing import dependence while strengthening domestic defence firms.

 

Border Infrastructure (BRO)

Reflecting the tense multi-front reality (China, Pakistan, and Bangladesh), the Border Roads Organisation (BRO) saw its capital budget hiked to ₹7,394 crore. This will accelerate “last-mile connectivity” projects like the Shinku La tunnel and strategic airfields in Ladakh and Arunachal Pradesh.

 

Intelligence and Internal Security Buildup

The Intelligence Bureau (IB) received a 63% increase in funding, one of the most significant boosts for internal security.

This reflects recognition that modern defence is not just about external threats but also about internal threat management, cyber, intelligence, counter-terrorism, and hybrid warfare.

 

 

Analysis and Implications

The budget effectively balances immediate tactical needs (post-Op Sindoor replenishment) with long-term structural shifts (domestic MRO and 75% indigenous procurement).

This budget signals a proactive stance on national security, with the sharpest hikes in capital (21.84%) and revenue (17.24%) outpacing pensions (6.56%), indicating a pivot from legacy costs to future capabilities.

The emphasis on domestic procurement (75% of capital acquisitions) aligns with the Aatmanirbhar Bharat initiative, potentially boosting local industries, job creation, and ancillary sectors like aerospace and electronics.

Post-Operation Sindoor, allocations for emergency arms, drones, and border infrastructure (via BRO) address immediate threats from Pakistan. At the same time, long-term R&D investments (DRDO hike) aim to counter broader challenges from China.

Economically, the 2% GDP share remains below global peers like the US (3.5%) or Russia (4%), but the absolute increase to ~$86 billion positions India as a top (fourth-highest) global spender.

Overall, this allocation enhances India’s deterrence credibility, fosters innovation, and supports regional stability, though sustained execution will be key to realising these goals.

 

Strategic Takeaways

The most significant increase in defence spending in recent years

Focus on modernisation & capital acquisition.

Alignment with security imperatives post-Operation Sindoor

Growth of the domestic defence ecosystem & R&D push.

 

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References and credits

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Disclaimer:

Information and data included in the blog are for educational & non-commercial purposes only and have been carefully adapted, excerpted, or edited from reliable and accurate sources. All copyrighted material belongs to respective owners and is provided only for wider dissemination.

 

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780: ACHIEVING CONVERGENCE: AN INTEGRATED RESPONSE TO MULTI-DOMAIN HYBRID THREATS

 

Victory belongs to the side that converges fastest and most effectively.

 

  • Hybrid threats are the new normal: No clear distinction between peace and war—conflict today spans land, sea, air, cyber, space, and the cognitive/information domain.
  • Recent global and regional conflicts show that economic pressure, cyberattacks, disinformation, and proxy actors can be as decisive as kinetic force.
  • For India, the challenge is amplified by:
  • Long borders, contested domains, and grey-zone competition
  • Rapid digitisation and dependence on networks
  • Aatmanirbharta is not just about weapons—it’s about resilience across domains.

 

Multi-Domain Hybrid Threats

These threats exploit gaps between institutions, systems, and policies—not just military weaknesses.

  • Uniqueness of Multi-Domain Hybrid Threats:
  • Simultaneous use of military and non-military tools
  • Ambiguity in attribution and intent
  • Designed to stay below traditional thresholds of war
  • Domains involved:
  • Physical: land, maritime, air & space
  • Virtual: cyber
  • Cognitive: information warfare, perception management, narrative control

 

The Core Challenge: Lack of Convergence

Without convergence, even advanced systems remain reactive instead of proactive.

  • India has capabilities, but more often in silos:
    • Services more often operate in parallel
    • Civil-military-industry-academia linkages remain fragmented
  • Compatibility Issues: Using disparate foreign systems makes it difficult to “talk” to one another (interoperability).
  • Dependency Risks: Dependence on foreign Original Equipment Manufacturers (OEMs) for software updates or critical components creates a “kill switch” risk during a hybrid conflict.
  • Hybrid threats demand:
    • Speed of response
    • Shared situational awareness
    • Joint decision-making

 

Achieving Convergence

Convergence is not only jointness, but also the deliberate orchestration and synchronisation of capabilities across domains to create effects greater than the sum of parts, imposing multiple simultaneous dilemmas on the adversary.

  • Without convergence, the responses are fragmented, allowing the adversary to exploit seams between domains.
  • Convergence creates windows of advantage, collapses adversary decision cycles, and maintains superiority even against numerically/ technologically superior foes.

It is integration across four layers.

 

 Strategic & Institutional Convergence

  • Whole-of-government and whole-of-nation approach
  • Seamless coordination between:
    • Armed Forces
    • Intelligence agencies
    • Ministries, regulators, and strategic industries.
    • Indigenous ecosystems must align with national security priorities, not just commercial success.

 

Operational Convergence

  • True multi-domain operations:
    • Real-time data sharing across services and agencies
    • Common operational picture integrating sensors, platforms, and cyber inputs
  • Indigenous command-and-control, ISR, and decision-support systems are critical.

 

Technological Convergence

  • Indigenous development must focus on systems-of-systems, not standalone platforms.
  • Priority areas:
    • AI-enabled analytics
    • Cyber-secure networks
    • Space-based surveillance and communications
  • Avoiding vendor lock-in and foreign black boxes is a strategic imperative.

 

Cognitive & Information Convergence

  • Hybrid warfare targets public perception, morale, and trust.
  • Defence preparedness today includes cognitive security.
  • Indigenous capabilities in:
    • Information monitoring
    • Narrative analysis
    • Strategic communication

 

Role of Indigenous Defence Ecosystems

Indigenous ecosystem: It enables trusted integration across domains (critical for convergence).

  • Aatmanirbharta is not a luxury; it is a strategic necessity. It ensures:
  • Sovereign control over design, development, upgradation, and maintenance.
  • Rapid customisation to the Indian threat environment.
  • Uninterrupted supply in contested scenarios.
    • Assured availability during crises
    • Faster upgrades and adaptation
    • Security of data and algorithms
  • Indigenous ecosystems should be:
    • Collaborative, not service-specific
    • Dual-use, leveraging civil innovation (startups, academia, MSMEs)
  • Initiatives like iDEX and Make in India must evolve toward mission-oriented innovation, not isolated products.

 

Building an Integrated Response: The Way Forward

  • Move from platform-centric thinking to capability-centric planning
  • Encourage:
    • Joint problem statements from the Armed Forces
    • Early user involvement in indigenous R&D
  • Invest in:
  • Talent pipelines in cyber, AI, space, and EW
  • Indigenous C4ISR backbone: C4I2SR (Command, Control, Communications, Computers, Intelligence, Information, Surveillance, and Reconnaissance).
  • Data Fusion: Using AI/ML to process massive data from satellites, drones, and social media into actionable insights.
  • Cyber-Physical Security: Protecting critical infrastructure (grids, ports) alongside military hardware.
  • Electronic Warfare (EW): Developing indigenous jammers and decoy systems to blind adversary sensors. Indigenous testbeds and simulation environments
  • Space & counter-space capabilities: Indigenous satellites, ASAT, space domain awareness.
  • Cognitive/information domain mastery: Indigenous tools to counter disinformation, build narrative resilience.
  • Unmanned & autonomous systems: Swarm drones, UUVs, loitering munitions — all indigenously designed for multi-domain synergy.
  • Cultivate the Ecosystem
  • Plug-and-Play Architecture: Encourage the development of “Open Standards” so a startup’s AI algorithm can easily integrate with a major defence platform.
  • Civil-Military Fusion: Leverage India’s private sector IT prowess to build defensive cyber-moats.
  • Testing and Iteration: Create “Sandboxes” where indigenous tech can be tested against simulated hybrid threats in real-time.
  • Prioritise indigenous tech in acquisition.
  • Invest heavily in R&D ecosystems: Deep tech fund, long-term loans, tax incentives for startups.
  • Build resilience & redundancy: Multiple indigenous sources for critical components.
  • Foster international partnerships: Only where they complement (not substitute) indigenous capability.
  • Measure success not by import substitution alone, but by operational effectiveness in contested, multi-domain scenarios.

 

Closing Thought

  • Hybrid threats are designed to exploit disunity and delay.
  • Convergence is the force multiplier, and Aatmanirbharta is the necessary enabler.
  • Building indigenous defence capability is ultimately about: Ensuring India can think, decide, and act independently across all domains—at the speed of modern conflict.

 

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References and credits

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Pics Courtesy: Internet

Disclaimer:

Information and data included in the blog are for educational & non-commercial purposes only and have been carefully adapted, excerpted, or edited from reliable and accurate sources. All copyrighted material belongs to respective owners and is provided only for wider dissemination.

 

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763: TEJAS MK 1A TAKES FLIGHT FROM NASHIK

 

This article is a compilation of news excerpts of the event.

 

On October 17, 2025, India’s aerospace ambitions soared to new heights as the Tejas Mk1A, the country’s indigenously developed Light Combat Aircraft (LCA), completed its maiden flight from Hindustan Aeronautics Limited’s (HAL) Nashik production facility in Maharashtra. This landmark event, inaugurated by Defence Minister Rajnath Singh, marked not only the successful test flight of the first Tejas Mk1A built entirely at Nashik but also the formal launch of HAL’s third dedicated production line for the aircraft, alongside a second line for the HTT-40 basic trainer aircraft. The skies above Ozar Airport buzzed with pride as the Tejas Mk1A, accompanied by a flypast featuring the HTT-40 and Su-30MKI, received a ceremonial water cannon salute, symbolising a pivotal moment in India’s journey toward self-reliance in defence manufacturing.

The Tejas Mk1A is a 4.5-generation multi-role fighter jet, designed by the Aeronautical Development Agency (ADA) and manufactured by HAL. It represents a significant leap forward from its predecessor, the Tejas Mk1, with enhanced avionics, an advanced EL/M-2052 Active Electronically Scanned Array (AESA) radar, an electronic warfare suite, air-to-air refuelling capabilities, and integration with indigenous weapons like the Astra missile and laser-guided bombs. With over 64% indigenous content, the aircraft is a cornerstone of India’s ‘Atmanirbhar Bharat’ (Self-Reliant India) initiative, aimed at reducing dependence on foreign defence imports and bolstering the Indian Air Force’s (IAF) operational capabilities.

The maiden flight from Nashik underscores HAL’s efforts to scale up production to meet the IAF’s pressing needs. The IAF currently operates 29 squadrons against a sanctioned strength of 42, with ageing MiG-21s being phased out. The Tejas Mk1A is positioned to fill this gap, offering superior air superiority, ground attack, and maritime strike capabilities. HAL Chairman DK Sunil emphasised the aircraft’s significance, stating, “The Tejas Mk1A’s advanced electronics and avionics make it a 4.5-generation powerhouse, vastly superior to the MiG-21 Bison it replaces.”

The Nashik production line, established in April 2023 at a cost of over ₹150 crore, is a state-of-the-art facility designed to complement HAL’s two existing lines in Bengaluru, which together produce 16 Tejas Mk1A jets annually. The Nashik line starts with a capacity of 8 aircraft per year, with plans to scale up to 10 within two years through additional assembly jigs and advanced tooling. This expansion brings HAL’s total production capacity to 24 jets per year, with ambitions to exceed 30 through partnerships with private sector players like VEM Technologies (fuselages) and Larsen & Toubro (wings).

The Nashik facility’s inauguration was a spectacle of national pride. The flypast, featuring the sleek Tejas Mk1A alongside the rugged HTT-40 trainer and the formidable Su-30MKI, showcased HAL’s integrated production capabilities. The water cannon salute, a traditional gesture reserved for significant aviation milestones, added a touch of grandeur to the occasion, resonating deeply with defence enthusiasts and the public alike.

The journey to this milestone was not without challenges. The Nashik facility, launched in 2023, initially targeted its first aircraft rollout by May 2025. However, supply chain disruptions and technical refinements pushed the timeline forward. Key milestones included:

    • April 2023: Nashik facility inaugurated, with a focus on rear fuselage assembly and integration.
    • March 2025: First rear fuselage delivered; rollout delayed to April due to avionics integration tweaks.
    • May 2025: Adjusted plans aimed for a June rollout, but supply chain hurdles persisted.
    • June 2025: Delivery target set for end-June, with mid-July maiden flight plans postponed.
    • August 2025: Cabinet Committee on Security approved an additional 97 Tejas Mk1A jets, valued at ₹66,500 crore, bringing the total order to 180 (83 initial + 97 new).
    • September 2025: Contract signed for ₹62,370 crore; GE F404 engine deliveries resumed, with 12 expected in 2025-26.
    • October 17, 2025: Maiden flight achieved, with ongoing trials for weapons and radar integration.

These milestones reflect HAL’s resilience in overcoming logistical and technical hurdles, including delays in GE F404-IN20 engine supplies from the United States. With 99 engines contracted in 2021, HAL has had to rotate engines for testing due to supply constraints. Nevertheless, the successful flight on October 17 signals that production is stabilising, with formal IAF induction expected soon, pending validation of key integrations like the Astra missile and ELTA radar.

The Tejas Mk1A is a game-changer for the IAF, which has long grappled with squadron shortages and reliance on ageing Soviet-era aircraft. The aircraft’s versatility—capable of air-to-air combat, ground strikes, and maritime operations—makes it a critical asset in modern warfare. Its AESA radar enhances situational awareness, while the electronic warfare suite provides robust defence against enemy threats. The integration of indigenous Astra missiles and laser-guided bombs further strengthens India’s strategic autonomy, reducing reliance on foreign weaponry.

The IAF’s order of 180 Tejas Mk1A jets, valued at over ₹128,870 crore, reflects the government’s commitment to modernising its air force. The Nashik facility’s role in ramping up production is crucial, with HAL targeting 16-24 deliveries in 2025-26 and full-scale output of 24-30 jets annually from 2026-27. This pace is essential to replace retiring MiG-21s and maintain operational readiness against regional threats.

Despite the triumph of the maiden flight, challenges remain. Engine supply delays from General Electric have been a persistent bottleneck, forcing HAL to manage with limited units. The validation of critical systems, such as the AESA radar and weapons integration, is ongoing, with formal induction into the IAF expected within months. Additionally, HAL must navigate supply chain complexities and ensure quality control as it scales up production across multiple facilities.

Looking ahead, the Tejas Mk1A serves as a bridge to more advanced platforms like the Tejas Mk2 and the Advanced Medium Combat Aircraft (AMCA), India’s fifth-generation stealth fighter under development. The success of the Nashik facility also paves the way for greater private sector involvement, with companies like VEM Technologies and L&T playing pivotal roles in component manufacturing. This collaborative model could set a precedent for future defence projects, aligning with India’s vision of a robust domestic defence ecosystem.

The maiden flight of the Tejas Mk1A from Nashik is more than a technical achievement; it is a testament to India’s growing prowess in aerospace and defence innovation. The event has sparked widespread enthusiasm,  capturing the public’s imagination. Videos of the flypast and water cannon salute have gone viral, accompanied by comments praising the aircraft’s sleek design and HAL’s dedication to self-reliance.

Defence Minister Rajnath Singh, addressing the gathering, called the Tejas Mk1A “a shining example of India’s resolve to build a strong, self-reliant defence ecosystem.” The aircraft’s success reinforces India’s position as an emerging global player in aerospace, capable of designing, building, and deploying advanced fighter jets to meet its strategic needs.

The successful maiden flight of the Tejas Mk1A from Nashik on October 17, 2025, marks a defining moment in India’s defence journey. With its advanced capabilities, indigenous design, and growing production capacity, the Tejas Mk1A is poised to strengthen the IAF and reduce reliance on foreign imports. As HAL overcomes challenges and scales up output, the aircraft will serve as a cornerstone of India’s air defence strategy, paving the way for future innovations like the Mk2 and AMCA. This milestone, celebrated with a flypast and national pride, underscores India’s unwavering commitment to ‘Atmanirbhar Bharat’ and its ascent as a global aerospace power.

 

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References and credits

To all the online sites and channels.

Pics Courtesy: Internet

Disclaimer:

Information and data included in the blog are for educational & non-commercial purposes only and have been carefully adapted, excerpted, or edited from reliable and accurate sources. All copyrighted material belongs to respective owners and is provided only for wider dissemination.

 

 

References:-

Aramane, G. (2023, April 5). Foundation stone laid for HAL’s third production line for Tejas Mk1A at Nashik. The Economic Times.

Aviation A2Z. (2025, August 21). India approves $7.1 billion for 97 new fighter jets for its air force. Aviation A2Z.

Business Standard. (2025, August 20). Final nod for ₹62,000 crore deal to procure 97 more Tejas Mk1A jets. Business Standard.

Defence News India. (2025, October 2025). Nashik facility overcomes delays to roll out first Tejas Mk1A. Defence News India.

ET Now. (2025, September 25). Defence Ministry signs contract for 97 Tejas aircraft with THIS company worth Rs 62,370 crore – DETAILS. ET Now.

Eurasian Times. (2025, September 25). LCA Tejas: India signs $7B deal for 97 ‘Made In India’ Mk-1A fighter jets that will replace MiG-21 aircraft. Eurasian Times.

Free Press Journal. (2025, October 17). Tejas Mk-1A takes maiden flight from Nashik, indigenous-built fighter jet to boost IAF’s capabilities after formal induction; WATCH. Free Press Journal.

HAL India. (2025, October 17). HAL Nashik facility achieves first Tejas Mk1A flight [Press release]. Hindustan Aeronautics Limited.

Hindustan Times. (2025, October 17). HAL’s Nashik line boosts Tejas Mk1A production; IAF eyes 24 jets annually. Hindustan Times.

India Today. (2025, October 15). Tejas Mk1A maiden flight delays due to engine supply issues. HAL production update. India Today.

Indian Express. (2025, October 17). Tejas Mk1A maiden flight marks milestone for Atmanirbhar Bharat. The Indian Express.

Mathrubhumi. (2025, September 25). HAL secures ₹62,370 cr contract to supply 97 Tejas Mk-1A jets to IAF. Mathrubhumi English.

Ministry of Defence, Government of India. (2025, October 17). Tejas Mk1A maiden flight strengthens India’s defence ecosystem [Statement]. Ministry of Defence.

New Indian Express. (2025, August 20). CCS approves Rs 67,000 crore project for production of 97 improved Tejas Mk1A jets. The New Indian Express.

Overt Defence. (2025, August 28). India approves $7.4 billion HAL Tejas Mk1A fighter jet deal. Overt Defence.

Republic World. (2025, October 10). Big day, HAL’s Light Combat Aircraft Tejas Mk1A to take maiden flight on October 17. Republic World.

The Hindu. (2025, October 17). LCA Tejas Mk1A, manufactured in the Nashik plant of HAL, completes maiden flight. The Hindu.

The Hindu. (2025, August 20). Cabinet panel on security clears project to procure 97 LCA Mark 1A fighter jets for IAF. The Hindu.

The Times of India. (2025, October 17). First Tejas-Mk1A from Nashik completes maiden flight; gets water cannon salute — Watch. The Times of India.

The Week. (2025, September 25). Mega LCA Tejas Mk1A deal signed: Indian Air Force to add 97 fighters to its fleet from 2028. The Week.

Times Now [@TimesNow]. (2025, October 17). Tejas Mk1A Gets Water Cannon Salute After Maiden Test Flight In Nashik. [Post]. X.

Zona Militar. (2025, September 25). India confirmed the purchase of 97 new LCA Tejas Mk1A fighter jets to replace its MiG-21s, which will soon be retired. Zona Militar.

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