New Delhi (TDI): India unveiled an ambitious national budget on Sunday, pledging record spending on both infrastructure and defense. Finance Minister Nirmala Sitharaman announced plans that include high-speed rail projects, fighter jets, submarines, and a range of other strategic investments.
The government plans to allocate $133 billion for infrastructure, up around 9 percent from last year, and $85 billion for defense, marking a 15 percent increase. Key sectors such as data centres, artificial intelligence, and the mining and processing of rare earths will also receive substantial government support.
Highlighting the scale of investment, Sitharaman noted that public spending on infrastructure has jumped from roughly $21 billion (2 trillion rupees) in 2014–15 to an all-time high today.
Defense Minister Rajnath Singh described the increase in military spending as “unprecedented,” emphasizing that it will equip India’s armed forces with fighter jets, drones, ships, submarines, and other critical hardware. “It is in the best interest of the nation,” he said. The announcement follows last May’s four-day conflict with Pakistan, which resulted in at least 70 casualties and saw extensive use of drones, missiles, and artillery on both sides.
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India is currently negotiating defense contracts with both domestic and international suppliers, including France, the United States, and Germany.
Beyond defense, the government sees infrastructure investment as essential to sustaining India’s rapid economic growth by boosting domestic manufacturing and generating millions of new jobs. Prime Minister Narendra Modi said, “India is not content with simply being the fastest-growing economy. India wants to become the world’s third-largest economy.”
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The budget also outlines an ambitious roadmap to strengthen domestic manufacturing and self-reliance. Priority sectors for export growth include textiles, pharmaceuticals, electronics, and chemicals. Plans include developing specialised business parks for textiles and chemicals, along with a $5 billion initiative to expand domestic electronics production.
