Prime Minister Narendra Modi emphasized that the government stands firm with the defense forces, and will undertake all essential measures to empower them. Our commitment to reform is being actively fulfilled.
In an interview with News Agency PTI, PM Modi highlighted that it is the government's duty to modernize the defense sector according to prevailing conditions, which justifies the increased defense budget.
He further expressed that the private sector is pivotal for the next phase of economic transformation and should focus less on profit margins while accelerating investment in R&D supply chains and enhancing quality.
Budget 2026 as a Prelude to a Developed India
PM Modi asserted that this year’s budget symbolizes India's aspiration to become a developed nation. He stated, 'This budget is not a forced decision but an inspired moment signaling our readiness.'
In alignment with Budget 2026, the government has significantly increased defense spending, raising the total defense budget for the current fiscal year from 6.81 lakh crore INR to 7.85 lakh crore INR, marking nearly a 15% increase.
Capital expenditures in defense have also seen substantial growth, moving from last year's 1.80 lakh crore INR to 2.31 lakh crore INR, a 28% increase.
The Prime Minister remarked that the government will do 'whatever is necessary' to fortify and support the nation's armed forces. He acknowledged the necessity of defense modernization amidst evolving geopolitical and security challenges, ensuring the nation remains prepared for every eventuality.
PM Modi on Economic Policies and FTAs
Speaking on economic policies, the Prime Minister noted that robust manufacturing, service sectors, and MSMEs enabled India to negotiate free trade agreements (FTAs) with 38 countries from a position of strength. He explained, 'Our FTAs are designed to grant MSMEs in textiles, leather, chemicals, handicrafts, gems, and others access to new markets.'
Foremost Importance to Women’s Welfare in Every Decision
Addressing the role of women, the Prime Minister emphasized that women's welfare holds utmost priority in every government decision. According to him, policies and programs are centered on women's advancement. He expressed confidence that women’s participation will be pivotal in building a developed India, leading the country's progress.
Discussing the next phase of economic development, the Prime Minister emphasized the private sector's significance, urging the industry to take proactive and substantial initiatives. He advised companies to expand their investments in research, supply chain improvements, and quality enhancements rather than focusing solely on safeguarding profits. He also highlighted that data centers can generate extensive employment opportunities for youth, and India is ready to host global data.
