New Delhi: India's defence budget has been hiked by 10 percent to Rs.1,05,600 crore, Finance Minister P. Chidambaram announced on Friday, saying even more money would be provided if required. India has become World's biggest military equipments buyer recently.

"The allocation for defence is being raised by 10 percent from Rs.96, 000 crore to Rs. One lakh five thousand six hundred crore," the minister said while delivering his budget speech in parliament.

"I have assured the defence minister that more money would also be provided if necessary, especially for capital expenditure," he added.