India has allocated ₹6,21,940 crore for defence spending in the Union Budget 2024-25, an increase from the previous year's ₹5.94 lakh crore, Finance Minister Nirmala Sitharaman announced while presenting the budget. The interim budget had set aside ₹6,21,541 crore for the defence sector, marking a 4.72% increase over the financial year 2023-24.
The capital outlay for defence has been pegged at ₹1,72,000 crore, representing 12.9% of the total government budget for the financial year 2024-25. Defence Minister Rajnath Singh expressed his gratitude on X, highlighting the significant allocation which aims to enhance the capabilities of the Armed Forces. He emphasized that the earmarking of ₹1,05,518.43 crore for domestic capital procurement would boost the Atmanirbhar Bharat initiative. Singh also noted a 30% increase in the allocation for Border Roads under the capital head, amounting to ₹6,500 crore, which will accelerate border infrastructure development.
In addition, ₹518 crore has been allocated to the iDEX scheme to support technological solutions from startups, MSMEs, and innovators in the defence sector. The defence budget for 2023-24 was ₹5,93,537.64 crore, reflecting an increase of approximately ₹68,834 crore from the previous year. For 2022-23, the budget was ₹5,25,166 crore.
Of the total allocation for this year, 27.67% is designated for capital expenditure, 14.82% for revenue expenditure related to sustenance and operational preparedness, 30.68% for pay and allowances, 22.72% for defence pensions, and 4.11% for civil organizations under the Ministry of Defence. The capital budget is primarily used for acquiring new weapons, systems, and equipment.
This budget allocation underscores the Indian government's commitment to strengthening its defence infrastructure and supporting indigenous production capabilities.
