Defence Secretary Rajesh Kumar Singh stated that India aims to increase defence spending to around 2.5% of GDP over the next five years, up from current levels, to enhance military capabilities while maintaining fiscal sustainability. This follows the Union Budget 2026-27 announcement of ₹7.85 lakh crore for defence (a 15.2% rise), including ₹2.31 lakh crore for capital expenditure (20.1% increase). The focus is on modernization, indigenous manufacturing, and addressing gaps like cyberattacks and AI-based warfare. Additional reports highlighted a 21% overall surge to ₹5.95 lakh crore, with 11% of GDP allocated to defence (up from 8%), emphasizing faster procurement and reduced import dependence.