Prime Minister Narendra Modi on Sunday underscored the need for India to remain strong and prepared at all times, highlighting a record Rs 7.85 lakh crore allocation for defence in the Union Budget 2026‑27. Speaking in an exclusive interview to PTI, he said the budget is 15% higher than the previous year and represents the largest allocation to any ministry, reflecting the government’s focus on modernisation and national security.
Citing the benefits of a decade of defence reforms, PM Modi praised the armed forces’ performance during Operation Sindoor. He noted that Rs 1.85 lakh crore has been earmarked specifically for modernisation, a 25% increase over last year, while 75% of the Rs 2.2 lakh crore capital expenditure for the three forces will be procured from domestic industries, boosting both security and job creation.
The prime minister highlighted India’s growing self-reliance in defence production. He noted that indigenous defence output has reached record levels, exports have surpassed Rs 23,000 crore, and the government has supported startups and innovation in the sector. PM Modi also reaffirmed the government’s commitment to ex-servicemen, with healthcare allocations rising 45% to over Rs 12,000 crore, alongside the long-pending fulfilment of the One-Rank-One-Pension (OROP) demand.
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Beyond defence, PM Modi outlined his top three reform priorities for the next decade: continuing structural reforms to enhance competitiveness, deepening innovation across technology, manufacturing, and services, and simplifying governance to make it easier for citizens and businesses to operate. He said these reforms have already reduced middlemen, improved infrastructure, and streamlined regulatory processes.
The prime minister pointed to social sector reforms as equally important, citing programmes like Aspirational Districts, tribal welfare initiatives, and PM-JANMAN that target historically disadvantaged communities. He emphasized that public life demands “constructive restlessness,” with a constant drive to improve services and opportunities for citizens while acknowledging the progress achieved under the government’s “Reform Express.”
PM Modi also highlighted India’s emergence as a global digital and startup leader, enabled by reforms such as UPI, GST simplification, and expanded FDI in insurance. He noted that MSMEs now enjoy better credit access, simplified taxes, and integration into global value chains, with increased investment and turnover limits to support growth and innovation.
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