Post-Operation Sindoor, India has increased its military spending by 15.19 per cent, one of the biggest annual hikes. The capital spending — needed for new weapons, systems, jets, ships, submarines and guns — has also gone up by 21.84 per cent to address rising threats.The budgetary allocation stands at 2 per cent of the country’s estimated gross domestic product (GDP), one of the highest ratios of military spending to the GDP in the recent past.Focusing on self-reliance, modernisation, technology infusion and infrastructure building in border areas, Finance Minister Nirmala Sitharaman today proposed an allocation of Rs 7,84,678 crore for the Ministry of Defence for the fiscal commencing April 1. The allocation is 15.19 per cent higher than the Rs 6,81,210-crore allocation for the ongoing fiscal.In dollar terms, the military budget for the next fiscal is $85.3 billion. Almost 14.67 per cent of the Central Government expenditure will be on defence, the highest among all central ministries.The allocation for capital spending is Rs 2,19,306 crore, a 21.84 per cent jump over the Rs 1,80,000 crore for this fiscal and is aimed at ramping up capabilities. The money is intended to address “committed liabilities”. During the ongoing fiscal till December 2025, the MoD concluded contracts worth Rs 2.10 lakh crore. These projects will equip the armed forces with next-generation fighter aircraft, smart and lethal weapons, ships, submarines, UAVs and specialist vehicles.The Ministry of Defence issued a statement, saying, “The significantly enhanced allocation (of capital) will cater to the financial requirements that arose due to the emergency procurement of arms and ammunition post-Operation Sindoor.”At present, around 60 warships are under construction and domestic assembly lines are producing fighters jets, helicopters, artillery guns and rifles — all funded from the capital budget. Also in the queue is the upcoming contract of the next-generation submarines being offered by ThyssenKrupp Marine Systems of Germany in partnership with Mazagon Docks Shipbuilders Ltd. The capital allocation has a sharp focus on aircraft and aero-engines, and the naval fleet with a sum of Rs 63,733 crore and Rs 25,023 crore, respectively, being earmarked.The focus is on self-reliance and Rs 1.39 lakh crore — 75 per cent of the capital acquisition — is for procurement through domestic industries. Such earmarking of funds reassures the domestic industry about their investment.The government has been continuously allocating higher amount for sustenance and operational preparedness. A sum of Rs 1,58,296 crore has been allocated for the next fiscal for operational readiness to facilitate procurement of ration, fuel, ordnance stores, maintenance and repair of equipment.This allocation will also address additional deployment of forces in border areas, hiring of ships, increase in expenditure on longer sea deployment and increase in flying hours for aircraft.The allocation for the Defence Research and Development Organisation has been increased to Rs 29,100 crore, of which Rs 17,250 crore is for the capital expenditure.Focusing on strategic infrastructure in border areas, a sum of Rs 7,394 crore has been earmarked for capital works of the Border Roads Organisation. This will be used for constructing tunnels, bridges and roads near Yangtse in Arunachal Pradesh, J&K and Rajasthan, besides provide last mile connectivity to border areas.Catering to almost 33 lakh pensioners, including 6,40,536 defence civilian pensioners, the allocation for pensions now stands at Rs 1,71,338 crore, up from last year’s actual spending of Rs 1,69,186 crore.Defence Minister Rajnath Singh expressed gratitude to Prime Minister Narendra Modi.