India’s Union Budget for 2024-25 has unveiled a series of ambitious measures aimed at promoting Atmanirbharta (self-reliance) in the defence sector. With a substantial increase in allocation and a strong focus on domestic procurement and innovation, the budget signals India’s intent to transform itself into a major defence manufacturing hub and a significant player in the global defence market.
The defence budget has been set at ₹6.22 lakh crore (approximately $75 billion), marking a 4.79 per cent increase from the previous year. This allocation, representing 12.9 per cent of the total government budget, underscores the administration’s commitment to national security and military modernisation.
A cornerstone of this year’s defence budget is the emphasis on domestic procurement. A significant portion of the capital outlay, ₹1.05 lakh crore, has been earmarked for this purpose, aiming to boost indigenous defence manufacturing and reduce dependency on foreign suppliers. This strategic decision is expected to stimulate local industry and create job opportunities, contributing to economic growth and employment generation.
Modernisation and capability enhancement also feature prominently, with a capital expenditure of ₹1.72 lakh crore dedicated to equipping the armed forces with state-of-the-art technology. This investment is intended to bridge critical capability gaps and fund big-ticket acquisitions of advanced weapon systems.
Recognising the importance of border security, the government has increased the allocation for the Border Roads Organisation (BRO) by 30 per cent to ₹6,500 crore. This enhancement is crucial for maintaining operational readiness and improving infrastructure along India’s often challenging border terrains.
Innovation in defence technology has received particular attention, with an additional ₹400 crore allocated to the ADITI scheme (Acing Development of Innovative Technologies with iDEX – Innovations for Defence Excellence). This initiative aims to foster technological advancements and support startups in the defence sector, potentially leading to breakthroughs in military technology.
The budget’s emphasis on domestic procurement and manufacturing is part of a broader strategy to position India as a key player in the international defence trade. The focus has shifted from merely building parts and components to developing entire systems and platforms, reflecting India’s ambition to move up the value chain in defence manufacturing.
As India navigates complex geopolitical challenges, these budget allocations and policy initiatives demonstrate a clear intent to achieve strategic autonomy in defence capabilities. India is laying the groundwork for a more self-reliant and technologically advanced defence sector by fostering innovation, supporting domestic industries, and enhancing border infrastructure.
The coming years will be crucial in determining the success of these initiatives. With the government’s consistent focus on making India self-reliant in defence while enhancing its export potential, the country is positioning itself as a significant force in the international defence trade landscape. The results thus far have been encouraging, setting the stage for India’s emergence as a global defence manufacturing hub.
The author is Chair, Uttar Pradesh State Council
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