Union Budget 2021-22 has given a historic push to defence modernisation by increasing defence capital outlay by 18.75 per cent. The allocation under capital expenditure which relates to modernisation and infrastructure development of Armed Forces has been significantly increased. 

The allocation under Capital of over 1 lakh 35 thousand 60 crore rupees for Financial Year 2021-22 represents an increase of 18.75 per cent over Financial Year 2020-21 and 30.62 per cent over Financial Year 2019-20. This is the highest ever increase in capital outlay of Defence in the last 15 years.