India has announced its largest-ever defence budget—$86 billion for 2026. The sharpest increase comes in capital expenditure, now at $23 billion, marking an 18% rise from last year. This signals a strategic shift from reactive defence to modern, long-term preparedness. The budget supports major deals, including 114 Rafale jets and a submarine agreement with Germany, while focusing on domestic production under the “Make in India” initiative. Defence Minister Rajnath Singh emphasized modernization across all forces. With rising tensions with Pakistan and evolving threats, India is funding new tech—from AI to cyber units—to build a future-ready military ecosystem.