Decade of defence reforms bore fruit during Operation Sindoor: Modi

16/02/2026

NEW DELHI, Feb 15: The benefits of a decade of defence reforms were evident during Operation Sindoor, Prime Minister Narendra Modi said on Sunday, asserting that India has to be prepared at all times to deal with security challenges.
As a country that is playing an increasingly important role in the world, India has a duty to modernise its defence sector in line with current realities, Modi said in an exclusive interview to PTI.
Citing the allocation of Rs 7.85 lakh crore to the defence sector in the Union Budget 2026-27, the prime minister said the outlay is 15 per cent higher than the previous budget and is also the "biggest chunk" given to any ministry or department.
Since day one, the government has been clear -- it will do whatever it takes to support the country's defence forces and strengthen them, he said.
Modi said the Indian armed forces must be equipped with the best of Indian innovation and industry as technology is reshaping the world and that the NDA government has been working on modernisation and self-reliance in this sector for the last 11 years.
On Operation Sindoor, the prime minister said the entire country is proud of the courage shown by the armed forces.
"During the operation, one could see the benefits of the reforms we have undertaken in the last decade. Therefore, defence budgets, modernisation, etc., all these are parts of our continuous effort and need not be linked to any particular issue," he said in the written interview.
The prime minister was asked if the higher budgetary allocation to the defence sector was part of the lessons learnt from Operation Sindoor and does it also signal a continued mistrust of India's neighbours, including Pakistan.
"Yes, the reality is that our country has to be strong and be prepared at all times, and that is what we are doing," he said.
Modi said the modernisation of the armed forces has been a priority of his government.
"In this year's budget, a record Rs 7.85 lakh crore have been allocated to the defence sector. This is 15 per cent higher than the previous budget and is also the biggest chunk allotted to any ministry or department," he said.
"If you look at the details, too, there are noteworthy aspects. For modernisation, Rs 1.85 lakh crore have been allotted, which is 25 per cent above last year's allocation," he said.
Modi said the capital expenditure allotment for the three forces is almost Rs 2.2 lakh crore, of which 75 per cent is reserved for procurement from domestic defence industries.
"This not only enhances security but also creates jobs and strengthens our industrial base. The results are already visible -- defence exports have crossed Rs 23,000 crore, a nearly 35-fold rise in the past decade, and indigenous defence production has touched record levels," he said.
The prime minister said the government has been "very sensitive" to the well-being of the ex-servicemen.
"Hence, the allotment for the healthcare scheme exceeds Rs 12,000 crore. In percentage terms, it is a 45-per cent rise. But there is something more that I wish to place on record...," he said.
"Since day one, our government has been clear -- we will do whatever it takes to support our defence forces and strengthen them. Yes, this year's allocation is a record high, but viewing it in isolation only provides a limited perspective," Modi said.
The prime minister noted that it was the NDA government that fulfilled the four-decade-long demand for OROP (One-Rank-One-Pension).
"It is one of our biggest tragedies that those who ruled the country for decades used the defence sector only to enrich their own pockets, as evidenced by the number of defence-related scams during their tenure," he said in an indirect criticism of the previous Congress governments.
Modi also highlighted his government's push for defence modernisation.
"We have been working on modernisation and self-reliance in this sector for the last 11 years. See the number of startups working in this sector now," he said.
"We believe in giving Indian talent the opportunity to support our forces and contribute to a stronger India," he added.
In a sharp take down of trade negotiations during the UPA government, Prime Minister Narendra Modi on Sunday said its "economic mismanagement" left India unable to negotiate from a position of confidence and could never conclude any talks.
In an exclusive interview with PTI, Modi said India's deals signed with Australia, New Zealand, the UK, the EU, and the US have opened access for MSMEs, particularly in labour-intensive sectors, to export to these regions with near-zero tariffs or tariffs much lower than those of other exporting countries.
"These trade agreements may have happened recently, but they are the outcome of a more competitive domestic industry, a confident approach and an open outlook. These are rare qualities in today’s world. Before we speak of India’s successful trade agreements in recent years, it is important to recall where we stood just over a decade ago," the prime minister said.
During the years of the UPA government, they tried to secure some trade deals, and yet the journey was marked by "uncertainty and inconsistency", Modi said.
"Largely because their economic mismanagement left India unable to negotiate from a position of confidence. They did not lay the environment to bring negotiations to a conclusion. Talks would begin and then break down. In the end, despite prolonged negotiations, very little of real substance was achieved," he said, hitting out at the Manmohan Singh dispensation.
"But once we came in, we led an economic resurgence through our policy-driven governance, strengthened our economic fundamentals and created a rules-based system. When we ensured political stability, policy predictability and a reform-oriented approach, the world wanted to invest in India," he asserted.
Modi said his government's reforms helped both India's manufacturing and service sectors and encouraged productivity and competitiveness among MSMEs.
As a confident, competitive and fast-growing economy, many nations saw the benefits of pursuing trade agreements with India, he said.
"To understand the difference between the earlier approach and ours, consider the EU trade agreement. It was discussed and negotiated even under the previous government. But it was our government which eventually sealed a win-win deal for our economies," the prime minister said in a written interview.
Over the last few years, he said his government has built a strategic and purposeful network of Free Trade Agreements.
"We now have FTAs with 38 partner nations, an unprecedented milestone in India’s trade history. A remarkable feature of these trade agreements is that they span continents and include countries of varying economic strength. This gives our manufacturers and producers enough diversity and depth to sell our products across many markets," Modi said.
These FTAs have opened up the markets of major economies to India’s manufactured products, Modi said and cited the example of the India-UK FTA and the India-EU FTA that will eliminate tariffs on 99 per cent of India's exports to these countries.
He pointed out that merchandise trade with both Australia and the UAE has doubled since the signing of FTAs with these countries.
"Our service sector and its professionals are well known worldwide. They have already made India a hub of Global Capability Centres in different domains. These trade agreements have further boosted their opportunities with greater regulatory certainty, mutually beneficial frameworks and greater mobility across our partner nations," he said.
The country's manufacturing sector has been taking "giant strides" in over the past few years and these trade agreements will help integrate India and Indian products more deeply into global supply chains, he asserted.
"They will give better returns to Indian producers and manufacturers and also contribute to increasing prosperity for our people. The trade agreements of the past few years have come at a historic and opportune time for both our manufacturing and service sectors.
"They are creating a huge number of opportunities for our youth. I am confident that they will make an impact on the world with the quality and competitiveness of our goods and services," he said.
Modi further said that once Indian youth make an impact on the minds of the common people of partner nations, there will be no looking back.
"These trade agreements are significant not merely because of tariff reductions but because of supply-chain integration and market access in advanced economies. They gradually liberalise manufacturing tariffs, deepen services integration and create new avenues for labour-intensive exports such as textiles, footwear, electronics and engineering goods," he said.
In that sense, they support structural transformation rather than simply boosting headline trade numbers, he added.
"These FTAs also anchor domestic reform to external commitments. They widen export opportunities, reduce tariff disadvantages relative to competitors, and integrate Indian firms more deeply into global value chains. They reinforce India’s transition toward becoming a more open, confident and globally engaged economy, aligned with the long-term vision of Viksit Bharat by 2047," Modi said.
Asked about MSMEs having featured prominently in the recent trade agreements, Modi said, "We are entering into these historic trade deals from a position of strength. The vision of Made in India has filled our MSMEs with new confidence and vigour.”

Photo Gallery

BSE Sensex

NSE Nifty