What did the Union Budget 2024–2025 say about defence?

To enhance our defence capabilities budget presented in July 2024 gave the highest allocation to the Ministry of Defence (MoD).

event 26 Jul, 2024

Defence is a sector that is close to my heart. The sacrifices our armed forces make and the courage they show ensure that we sleep peacefully at night. With all the geopolitical tensions, rising conflicts and critical supply chain crunches around the world, it thus becomes more essential to support and strengthen our defence sector, which is a key pillar of our national security and economic stability. In line with this, the full budget presented in July 2024 yet again gave the highest allocation to the Ministry of Defence (MoD).

So, how does the government plan to enhance our defence capabilities? Let’s consider a few points.

Modernisation is essential

To keep up with global trends and reduce our external dependence, it’s crucial for India to develop the necessary infrastructure, adopt emerging technologies and build domestic capabilities for essential commodities. Considering this, the government has given a boost of almost INR1 lakh crore to the MoD for FY25 over FY23. The capital allocation for our armed forces is about 20 per cent higher than FY23’s actual spending.¹This increased budget will address critical capability gaps by investing in cutting-edge technology, advanced weaponry, fighter jets, ships and special military vehicles.

To boost Atmanirbharta, about INR1.05 trillion has been earmarked for procurement through indigenous sources.¹

Innovation is the mantra

The modern age demands innovation at every step in whatever we do. For a sector like defence, timely advancements in critical areas can provide a significant advantage. To support this, the government has made an additional allocation of INR400 crore for innovation in defence through the Acing Development of Innovative Technologies with iDEX (ADITI) scheme.1 This will help young innovators and start-ups and also increase the involvement of MSMEs in defence value chains.

R&D is gold

Whether it’s developing the Indigenous Scenario and Sensor Simulation Toolkit or the Underwater Launched Unmanned Aerial Vehicle, the Defence Research and Development Organisation (DRDO) has led the way in research-driven advancements for India’s defence sector. This is a prime example of how improved research capabilities can give us an edge. This year, the budgetary allocation to DRDO has been increased to INR23,855 crore, with an aim to enhance fundamental research and promote private sector involvement in defence production.1 Besides, an allocation of INR60 crore has also been made to the Technology Development Fund to attract young and fresh talent.1 Young India now has more opportunities to lead our defence ecosystem.