The Interim Union Budget for the fiscal year 2024-25 has allotted an unprecedented Rs 6.21 lakh crore to the Ministry of Defence (MoD). This represents a 4.72 percent increase from the previous fiscal year (FY 2023-24), indicating the nation’s commitment to bolstering its defence infrastructure while promoting self-reliance and defence exports.
One significant aspect of the budget is the allocation of Rs 1.72 lakh crore, comprising 27.67 percent of the total defence budget, for capital acquisition. This substantial funding aims to equip the armed forces with state-of-the-art technology, including fighter aircraft, ships, Unmanned Aerial Vehicles (UAVs), and drones, in alignment with the Long Term Integrated Perspective Plan (LTIPP) to address critical capability gaps and enhance combat readiness.
The budget also outlines specific plans for modernization, such as upgrading the Su-30 fleet, acquiring advanced engines for MiG-29, and procuring transport aircraft C-295. Additionally, there is a clear emphasis on the ‘Make in India’ initiative, with funding allocated to projects like LCA MK–I IOC and FOC configuration and various Indian Navy projects, aiming to bolster the domestic defence industry and stimulate economic growth.
To enhance jointness and financial flexibility, the government has consolidated the demands of the three services into similar expenditure items, facilitating reallocation of funds based on inter-service priorities and streamlining decision-making processes.
In terms of revenue expenditure, the budget allocates Rs 92,088 crore (excluding salary), a 48 percent increase from FY 2022-23, to address the operational needs of the armed forces, underlining the government’s commitment to ensuring their preparedness. Additionally, the Defence Pension Budget has been raised to Rs 1.41 lakh crore to support approximately 32 lakh pensioners.
Border infrastructure receives a boost with an allocation of Rs 6,500 crore, marking a 30 percent increase from the previous fiscal year, aimed at strengthening strategic infrastructure along the Indo-China border. The Indian Coast Guard also sees a significant increase in funding to enhance maritime security capabilities.
The Defence Research and Development Organisation (DRDO) receives an enhanced budget of Rs 23,855 crore, focusing on capital expenditure to drive innovation and technological advancements in defence. This includes Rs 60 crore allocated to the Technology Development Fund (TDF) scheme to promote collaboration with startups, MSMEs, and academia.
Defence Minister Rajnath Singh praised Finance Minister Nirmala Sitharaman for presenting a positive and encouraging interim budget, aligning with Prime Minister Narendra Modi’s vision of a confident, strong, and self-reliant India. Singh highlighted the budget’s focus on infrastructure, manufacturing, housing, and technology development as catalysts for India’s unprecedented growth.
