New Delhi, Feb. 1 -- India has increased the capital outlay for defence by about 18% to nearly Rs.2.2 trillion for the financial year starting 1 April (FY27), as the country looks to acquire sophisticated weapons and modernise its military assets amid rising security risks.

The revised estimates put the defence sector's capital outlay at Rs.1.86 trillion in FY26.

"In the current geopolitical scenario, quantum jump in the modernisation budget is a strategic imperative. During FY 2025-26, up to 3rd quarter i.e., till December 2025, MoD (ministry of defence) has concluded contracts worth Rs.2.10 lakh crore and has, so far, given Acceptance of Necessity approval for more than Rs.3.50 lakh crore. The upcoming projects under capital acquisiti...