ENA Sectors 2026-02-02 16:13:13 <p><span style="font-size:14px"><strong>New Delhi, Feb 2 (KNN)</strong> The Union Budget 2026 27 has placed strong emphasis on defence indigenisation and domestic manufacturing, with the Ministry of Defence receiving a record allocation of Rs 7.85 lakh crore. </span></p> <p><span style="font-size:14px">The enhanced outlay reflects the governments focus on strengthening indigenous capability while meeting evolving security requirements.</span></p> <p><strong><span style="font-size:14px">Major Boost for Domestic Defence Industry</span></strong></p> <p><span style="font-size:14px">The government has earmarked Rs 1.39 lakh crore or around 75 per cent of the capital acquisition budget for procurement from domestic industries, including private sector players.</span></p> <p><strong><span style="font-size:14px">Increased Allocation for Defence Research and Development</span></strong></p> <p><span style="font-size:14px">The Defence Research and Development Organisation (DRDO) has been allocated Rs 29,100.25 crore for FY 2026 27, up from Rs 26,816.82 crore in the previous year. </span></p> <p><span style="font-size:14px">Capital expenditure accounts for Rs 17,250.25 crore of the total allocation.</span></p> <p><span style="font-size:14px">The increased funding is expected to support indigenous research, technology development, and innovation in advanced defence systems.<br /> <br /> <strong>Enhanced Healthcare Support for Veterans</strong></span></p> <p><span style="font-size:14px">The Budget has significantly raised allocation for the Ex-Servicemen Contributory Health Scheme (ECHS) to Rs 12,100 crore, a 45.49 per cent increase over FY 2025 26 BE. </span></p> <p><span style="font-size:14px">The funds will primarily cover medical treatment-related expenditure for veterans and their dependents.</span></p> <p><span style="font-size:14px">Over the past five years, ECHS allocations have increased by more than 300 per cent, reflecting a sustained focus on veterans welfare.</span></p> <p><strong><span style="font-size:14px">Defence Pensions See Moderate Increase</span></strong></p> <p><span style="font-size:14px">Defence pension expenditure for FY 2026 27 has been set at Rs 1,71,338.22 crore, an increase of 6.56 per cent over the previous year. </span></p> <p><span style="font-size:14px">The allocation will support pension disbursement to over 34 lakh beneficiaries through the SPARSH system and other authorised channels.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span><br /> </p> 44998 https://knnindia.co.in/news/newsdetails/sectors/union-budget-202627-strengthens-make-in-india-in-defence-sector 2026-02-02 16:13:13 knnindia.co.in