New Delhi, July 7 -- India is set to ramp up its defence expenditure significantly, with plans to sign contracts worth Rs 2 lakh crore in the financial year 2025-26.

Defence Secretary Giridhar Aramane confirmed that the government is aiming to gradually raise the defence budget to around 2.5% of GDP over the next five years, from the current level of approximately 1.9%.

The Ministry of Defence is working closely with the Finance Ministry and the 16th Finance Commission to secure additional funding.

Aramane stated that depending on project execution speeds and industry readiness, the ministry may seek extra allocations during the revised budget stage of FY26.

One of the key focus areas in FY26 will be the Advanced Medium Combat Aircraf...