India’s Defence Budget Under Pressure Amid Rising Global Threats

Three-front security challenges highlight urgent need for military modernisation

January 18, 2026: As global geopolitics grows increasingly volatile, India faces mounting pressure to strengthen its military preparedness amid aggressive posturing by major powers. From China’s continued incursions in Eastern Ladakh and Russia’s war in Ukraine to conflict in Gaza and rising regional tensions, the security environment has become far more complex. For India, safeguarding territorial integrity and strategic interests now depends heavily on defence allocations outlined in the Union Budget, which is closely watched by the international strategic community.

Despite allocating ₹6.81 lakh crore in the 2025–26 Union Budget, India’s armed forces continue to grapple with financial constraints that limit modernisation. Only about ₹1.8 lakh crore has been earmarked for capital expenditure, much of which is absorbed by existing commitments rather than new acquisitions. This has left critical gaps in force readiness along India’s nearly 14,000-km-long borders with China, Pakistan, Bangladesh, Myanmar, Nepal and Bhutan. Comparatively, China’s defence spending stands far higher, intensifying concerns about India’s ability to match potential adversaries in advanced weaponry and deployment.

Recent events, including Operation Sindoor against Pakistan, have reinforced fears of a possible three-front challenge involving China, Pakistan and emerging instability along the Bangladesh border. Shortfalls in fighter squadrons, submarines, missile defence systems and counter-drone capabilities have added to the urgency for reform. Defence experts argue that with modern warfare evolving rapidly, India can no longer rely on a defence budget stuck at around 1.9 percent of GDP. They have called for a gradual increase to at least 2.5 percent of GDP to ensure adequate modernisation, deterrence and preparedness in an increasingly uncertain security landscape.