“To modernize all the three services of the defense sector and strengthen their future capabilities, the central government has allocated ₹7.85 crore to the Ministry of Defense in the Union Budget 2026-27,” NITI Aayog member VK Saraswat said.
Speaking to The Hindu on the sidelines of the ‘Defence Science Conclave’ organized by a local college in Vijayawada, Mr. Saraswat said the allocation represents a 15.19% increase over FY 2025-26 budget estimates and represents 14.67% of the central government’s total expenditure. “DRDO’s allocation has increased to ₹ 29,100.25 crore in the current financial year from ₹ 26,816.82 crore in FY 2025-26,” he said.
A prominent scientist with extensive experience in defense research said the emphasis is on acquiring advanced platforms, cutting-edge technologies and force multipliers. He said the proposal to support states in creating five university towns near industrial and logistics corridors is another major initiative to facilitate youth training in various research fields and align skill development with India’s long-term vision of becoming a Viksit Bharat by 2047.
On atomic energy, he said the Sustainable Use and Development of Nuclear Energy for Transforming India (SHANTI) Bill 2025 reflects the government’s effort to modernize laws governing the nuclear sector.
“It opens up the nuclear power sector to private sector participation in the design, development, manufacturing and large-scale cooperation of nuclear power plants, including small, medium and large modular reactors,” he said, insisting that the move is critical to achieving India’s 100 GW nuclear power target, which cannot be achieved without private sector involvement.
“The goal is to lead the country toward a more mature and resilient nuclear ecosystem,” he said.
Referring to deep-tech start-ups, Mr. Saraswat pointed out that the building blocks of technology are changing rapidly. “Emerging and disruptive technologies such as artificial intelligence, quantum technologies, robotics, drones, cyber-physical systems, nanoscience and nanomaterials will reshape not only defence, but also sectors such as healthcare, energy and agriculture,” he said, stressing the need for integrated, multidisciplinary education and training to transform these technologies into innovative products.
He highlighted the growing importance of private-sector-led R&D, noting that historically less than 20% of India’s R&D funding has come from private sources.
“To address this, the government has launched the Research Development Innovation (RDI) initiative with an outlay of ₹ 1 lakh crore to boost research, innovation, production and use of advanced technologies while harnessing the country’s skilled youth,” he explained.
Citing the progress of the India Semiconductor Mission (ISM), he said the ₹76,000 crore semiconductor policy by 2021 has led to the establishment of foundries, Very Large Scale Integration (VLSI) centers and electronic component manufacturing units across India.
“Based on this, the government has launched Semiconductor 2.0, which focuses on advanced areas such as compound semiconductors, power electronics, neuromorphic chips and cutting-edge nodes in the 3nm to 7nm range, along with quantum technologies,” he said.
The former Defense Research and Development Organization (DRDO) secretary highlighted the strategic importance of rare earths and critical minerals, which he said are essential for defense systems, satellites, renewable energy technologies, EVs, batteries and electronics.
“To reduce dependence on imports, India has launched specialized missions for rare earths and critical minerals,” he informed, adding that due to limited domestic reserves, the strategy will involve both in-country exploration and international cooperation, including acquiring mining assets abroad to enhance security of supply.
Published – 07 Feb 2026 15:27 IST
