At the prestigious TOI Budget Dialogues, defence expert Lt. Gen. Rakesh Sharma (Retd.) delivered a critical analysis of India's Defence Budget for 2026, raising significant concerns about the financial framework and strategic priorities. His examination focused on the growing burden of committed liabilities and the constrained real growth in capital expenditure, which he argued could hamper India's military modernization efforts.
Financial Constraints and Capital Allocation Concerns
Sharma pointed out that the capital allocation of ₹2.20 lakh crore in the Defence Budget 2026 faces substantial pre-existing commitments. He questioned how much of this allocation is already locked into past approvals, noting that large-scale emergency procurements, the costs associated with Operation Sindoor, and Defence Acquisition Council clearances worth approximately ₹3 lakh crore remain in the pipeline. This situation, he warned, limits the availability of fresh funds for new initiatives and could delay critical acquisitions.
The Imperative of Battlefield Transparency
Drawing crucial lessons from contemporary conflicts, particularly the Ukraine war, Sharma emphasized that modern warfare demands unprecedented levels of battlefield transparency. He highlighted how satellite intelligence has proven decisive in recent engagements, enabling real-time monitoring and strategic advantages. In contrast, he noted that India currently lacks adequate Low Earth Orbit (LEO) satellite coverage, which is essential for comprehensive surveillance and intelligence gathering.
Prioritizing Modern Defence Systems
Sharma argued for a strategic shift in defence spending priorities, advocating that surveillance systems, drone technologies, and missile defence capabilities must take precedence over traditional platforms. He linked this urgent need to Prime Minister Narendra Modi's emphasis on building a "Sudarshan Chakra" for national security, suggesting that advanced technological assets are crucial for achieving this vision. His analysis underscored the importance of investing in cutting-edge systems to enhance India's defensive and offensive capabilities in an increasingly complex security environment.
Broader Implications for National Security
The expert's critique extends beyond budgetary figures to address foundational issues in India's defence planning. By flagging the rising committed liabilities, he highlighted potential risks to financial flexibility and long-term strategic autonomy. His call for battlefield transparency reflects a recognition of evolving warfare dynamics, where information dominance and technological superiority are becoming critical determinants of success. This analysis serves as a timely reminder for policymakers to balance immediate operational needs with future-oriented investments in defence infrastructure.
