Record Allocation for defence:
In the Union Budget 2026–27, Finance Minister Nirmala Sitharaman announced a record ₹7.85 lakh crore allocation for defence, the highest ever.The defence allocation for 2026–27 represents a strategic fiscal push to modernise the armed forces, meet post-operation requirements, and accelerate Aatmanirbhar Bharat in defence manufacturing.The government proposed to exempt basic customs duty on components and engines required for the manufacture of civilian and training aircraft.Basic customs duty is exempted on raw materials imported for the manufacture of aircraft parts to be used in Maintenance, Repair, or Overhaul (MRO) requirements by Public Sector Units in the Defence sector.A new scheme for the Enhancement of Construction and Infrastructure Equipment (CIE) was introduced, which includes support for tunnel-boring equipment essential for building high-altitude strategic roads and infrastructure.
