New Delhi, June 11 -- India's Ministry of Defence is aiming to place equipment orders worth Rs.2 lakh crore in the current fiscal year, with a strong emphasis on modernisation and boosting domestic procurement, Defence Secretary Rajesh Kumar Singh told NDTV Profit.

The government is looking to ramp up capital expenditure on defence to 2.5% of GDP by FY2026, up from the current 0.5%, Singh said.

In the Union Budget for FY26, the Ministry of Defence was allocated Rs.6.81 lakh crore-13.45% of the total budget.

Singh said the ministry plans to maintain this momentum with another Rs.2 lakh crore in contract signings this fiscal, ensuring that a majority of these contracts go to Indian defence manufacturers.

In addition to capital spending,...