India Boosts Defence Spending Amidst Border Tensions

India has allocated Rs 6,21,940 crore for defence in 2024-25, reflecting a 4.79% increase from the previous year. This includes Rs 1.72 lakh crore for capital expenditure on new weapons and technology, with a significant portion earmarked for domestic industries. Defence Minister Rajnath Singh praised the budget for bolstering self-reliance and the economy.

India has allocated Rs 6,21,940 crore for defence spending for the 2024-25 fiscal year, maintaining similar levels to the interim budget amidst ongoing border tensions with China in eastern Ladakh and evolving security concerns in strategic waterways.

The total defence budget marks a 4.79% increase from the previous financial year, with Rs 1.72 lakh crore dedicated to capital expenditure on acquiring new weapons, aircraft, warships, and other military hardware. This is aimed at addressing critical capability gaps and enhancing operational readiness.

The Ministry of Defence has reserved 75% of the modernization budget, amounting to Rs 1,05,518.43 crore, for procurement from domestic industries, emphasizing self-reliance. Defence Minister Rajnath Singh commended the budget, highlighting its role in achieving a prosperous and self-reliant India, and accelerating the country's economic transformation towards becoming a USD five trillion economy by 2027.