Union Finance Minister Nirmala Sitharaman, in her eighth consecutive budget presentation, allocated ?6.81 lakh crore for the defence sector in 2024-25, reflecting a 9% increase from the previous year’s ?6.22 lakh crore. The rise in allocation underscores India’s strategic priorities amid evolving geopolitical challenges. A significant portion of the budget is directed toward modernization efforts across the Indian Army, Navy, and Air Force, with a capital outlay of ?1.80 lakh crore—marking a 13% increase from the previous year’s revised estimate of ?1.59 lakh crore.
To boost domestic defence research and production, the Defence Research and Development Organisation (DRDO) has been allocated ?14,923 crore for research initiatives. The budget for aircraft and aero engines saw a slight increase to ?48,614 crore from ?46,591 crore last year. Additionally, ?1,494 crore has been earmarked for investment in the seven public enterprises formed from corporatized Defence Ordnance Factories. Defence pensions have also received a boost, with ?1.60 lakh crore allocated for FY 2025-26, up from ?1.57 lakh crore in revised estimates and ?1.41 lakh crore in budget estimates.
With ongoing tensions at the Line of Actual Control, the government continues to prioritize border security and infrastructure. The Border Roads Organisation (BRO) received an increased allocation of ?7,134 crore, up from ?6,500 crore in the previous year. This enhanced funding aims to strengthen defence capabilities, improve border connectivity, and ensure better logistical support for armed forces stationed in critical areas.
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