The defence industrial sector of India is strategically important in India. India has one of the world's largest military forces with a strength of over 1.55 million active personnel. The country has the world's largest volunteer military of over 5.1 million personnel. The total defence budget sanctioned for the financial year 2026 is ₹7.86 lakh crore (US$82 billion). India's defence spending is between 1.9% to 2.2% of the country's gross domestic product. The country has the largest annual defence budget behind USA and China. India's defence budget is projected to increase to US$415.9 billion between 2025 and 2029.