New Delhi: The Ministry of Defence (MoD) has recorded a strong financial performance in the current financial year, utilising over 50% of its capital outlay by the end of September 2025, signalling accelerated defence modernization and efficient fiscal management.
As per official data, the MoD’s capital expenditure has reached Rs 92,211 crore, which is 51.23% of the total allocation of Rs 1,80,000 crore for FY 2025026. This marks a robust pace of utilization compared to previous years and places the ministry on track to fully utilise its capital budget by the end of this financial year.
In FY 2024-25, the ministry had achieved 100% utilization, spending Rs 1,59,768 crore.
The strong mid-year spending reflects the government’s focus on timely delivery of key platforms — including aircraft, ships, submarines, weapon systems, and electronic warfare equipment — that are critical for the Armed Forces’ modernization drive. The bulk of expenditure so far has been directed towards aircraft and aero engines, followed by land systems, armaments, and communication and electronic warfare assets.
Officials said the momentum in capital expenditure not only supports national security preparedness but also contributes to economic growth and job creation, given its multiplier effect across industries.
In line with the government’s Aatmanirbhar Bharat initiative, the ministry has earmarked ₹Rs 1,11,545 crore for domestic procurement in FY 2025-26. Of this, 45% has already been spent, underscoring the growing role of Indian manufacturers — including MSMEs and startups — in defence production.
The current fiscal’s capital allocation, approved by the Ministry of Finance at Rs 1,80,000 crore, represents a 12.66% increase over last year’s actual expenditure. The ministry is also preparing revised estimates to accommodate several big-ticket projects that are in advanced stages of approval.
Over the last five years, capital outlay for the defence services has risen by nearly 60%, highlighting the government’s sustained commitment to enhancing India’s defence capabilities through modernization, indigenisation, and industry participation.
With over half the budget already deployed and several major acquisitions under way, the MoD appears firmly on course to meet — and possibly exceed — its capital spending targets for FY 2025-26.