India Prepares for Union Budget 2026 with Expected Defence Budget Increase Amid Security Challenges

India's Union Budget 2026-27, to be presented on February 1, is expected to include a significant increase in defence spending amid heightened security challenges. Following Operation Sindoor and ongoing threats from China, Pakistan, and Bangladesh, the Ministry of Defence seeks a 20% budget hike to modernize forces and address a potential three-front conflict. Since 2014, defence allocations have steadily increased, with the 2025-26 budget rising 9.53% to Rs 6.81 lakh crore, though analysts consider this insufficient for current needs.