New Delhi. The increasing geopolitical tension around the world and the tussle between superpowers has once again intensified the arms race. The Russia-Ukraine war, the US-Venezuela crisis and Donald Trump's aggressive stance on Iran and Greenland have raised global risks to an all-time high. Amidst this changing scenario, India is expected to see a huge increase in defense expenditure in the upcoming Union Budget 2026. Experts believe that India can increase its defense corpus not only against external threats but also to boost indigenous manufacturing under 'Atmanirbhar Bharat'.
Global instability and America's aggressive stance
Recently, the military action taken by America in Venezuela and the arrest of its President Nicolas Maduro has shocked the whole world. This development has raised apprehension whether China may also take a similar step regarding Taiwan?
According to Manoranjan Sharma, chief economist at Infomerics Ratings, "China does not view Taiwan through the prism of US behavior in Latin America. For Beijing, Taiwan is an issue of sovereignty, which depends on the regional military balance and the reliability of US alliances." However, US action on Venezuela definitely indicates Washington's decisive capability.
Will India increase its defense budget?
The challenges for India are two-dimensional. On one hand there is the rapidly increasing military power of China, and on the other hand there is a need for constant vigil on the borders with Pakistan.
Major possibilities related to Budget 2026
The 'five-point framework' behind defense spending
According to experts, India's defense budget will be based on these 5 key points
Budget: When was India's first budget presented and how much was it, check complete details