New Delhi: India on Friday hiked the defence budget for 2012-13 to Rs.1,93,007 crore (42 billion/Rs.1.93 trillion dollar) to fuel rapid modernisation of its army, navy and air force.

Finance Minister Pranab Mukherjee, who presented the budget in the Lok Sabha, also raised the capital expenditure on the defence forces to Rs.79,579 crore ($17.5 billion).