New Delhi, Feb. 2 -- India's defence industry is expected to register double-digit growth in the coming years, supported by a strong policy push and higher capital allocation in the Union Budget 2026-27, according to a report by Antique Stock Broking.

The report highlighted that the defence budget for FY26-27 has been pegged at Rs 7.84 trillion, accounting for nearly 15 per cent of the total Union Budget. This marks a 15 per cent year-on-year increase over FY26 Budget Estimates. Within this, capital spending has seen a sharp rise, with the allocation increased by 21.8 per cent over FY26BE to Rs 2.19 trillion.

According to the report, given the current geopolitical scenario, a significant jump in the modernisation budget is essential. In...