India has announced its biggest-ever defence and infrastructure spending plan, signaling a strong push for military strength and economic growth.

Indian Finance Minister Nirmala Sitharaman told parliament that India will spend $85 billion on defense, a 15% increase from last year. Infrastructure spending will reach $133 billion, up about 9%.

The budget includes funding for high-speed rail networks, submarines, fighter jets and modern military equipment. The government also plans heavy investment in data centers, artificial intelligence and rare earth mining.

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Sitharaman said public infrastructure spending has surged from about $21 billion in 2014–2015 and is now at an all-time high.

The rise in defense spending follows a four-day conflict with Pakistan last May that left at least 70 people dead. Both sides used drones, missiles and heavy artillery during the clashes.

Indian Defence Minister Rajnath Singh called the increase “unprecedented” and said it would help equip the armed forces with fighter jets, drones, ships and submarines. He said the move was “in the best interest of the nation”.

India is currently negotiating defence deals with both local and international suppliers, including companies from France, the United States and Germany.

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The government believes massive infrastructure spending is key to maintaining fast economic growth by strengthening domestic manufacturing and creating millions of jobs.

Prime Minister Narendra Modi said India wants to become the world’s third-largest economy. He added that the new budget offers a clear roadmap to boost self-reliance and manufacturing.