D espite rising defence budgets and ambitious acquisition plans, India still lacks an institutional framework to finance its long-term military capability goals. If the future of India’s defence sector depends on sustained capability building, it must first create the financial institutions to support it. A Defence Finance Corporation (DFC) could be the missing bridge between ambition and execution.

India spends heavily on defence but does not finance it. That distinction, subtle yet decisive, separates mature defence-industrial economies from those trapped in yearly budget cycles. Unlike agriculture, energy, or infrastructure, which have long-term credit institutions and development banks, India’s defence sector still relies on annual appropriations, a legacy of British-era fiscal syste

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