iNDICA NEWS BUREAU-
India’s defense allocation for 2024-2025 reveals a strategic focus on fortifying borders and advancing military capabilities amidst ongoing regional tensions.
Finance Minister Nirmala Sitharaman’s budget, presented to Parliament on Tuesday, July 23, allocates ₹6.21 trillion for national defense — a modest increase that underscores India’s commitment to security while managing fiscal constraints. This allocation, representing 12.9% of total government spending, aims to address immediate border concerns and long-term modernization goals, reflecting India’s nuanced approach to defense in an increasingly complex geopolitical arena.
The Interim Budget had allocated 13.2% of an estimated government spending of ₹45.03 trillion on defense.
Going by this Budget’s estimate of government spending of ₹48.2 trillion, the government has allocated a significantly lower percentage to defense — 12.9%.
Defense Minister Rajnath Singh thanked Sitharaman for giving the ‘highest allocation’ to defense.
“The capital outlay of ₹1.72 trillion will further strengthen the capabilities of the armed forces. The earmarking of ₹1.05 trillion for domestic capital procurement will provide further impetus to Atmanibharta (self-reliance),” Rajnath Singh said.
A notable rise in the Budget has been given to the Border Roads Organisation (BRO) – an increase of 30% over the last Budget, under the capital head.
“This allocation of ₹6,500 crore to BRO will further accelerate our border infrastructure. To boost the startup ecosystem in defense industries, ₹518 crore has been allocated to the iDEX scheme (Innovations for Defence Excellence) to fund radical technological solutions given by startups, micro, small and medium enterprises, and innovators,” the Defense Minister added.
India’s defense budget for fiscal year 2024-2025 demonstrates a multifaceted approach to national security, with a significant emphasis on strengthening border infrastructure alongside modernization efforts and operational readiness.
The increased allocation for border infrastructure development reflects India’s strategic focus on securing its borders, particularly in light of ongoing tensions with neighboring countries. The enhanced funding is expected to be directed toward improving roads, bridges, and other critical infrastructure along India’s northern and northeastern borders, areas that have seen heightened military activity in recent years.
A significant feature of the Budget is the increased funding for the Agniveer scheme.
Personnel costs remain a significant portion of the Budget, with 30.66% for pay and allowances and 22.70% for defense pensions. This reflects the importance of human resources in India’s defense strategy and partially explains the Modi government’s decision to implement the politically contentious short-term employment scheme Agniveer, which does not feature monthly life-long pensions. For example, the Budget for defense pensions has risen to a staggering ₹1.41 lakh crore this financial year.
The Indian Army had been given a hike to ₹2,836 crore in the Interim Budget and another hike to ₹5,207 crore in the Budget for 2024-2025.
Capital allocations remain static at current levels, with the Army getting ₹33,411 crore, the Navy getting ₹51,052 crore, and the Air Force getting the largest hike of ₹58,112 crore.
In comparison to regional neighbors, India’s approach seems measured yet strategic. While China’s defense budget for 2024 is set at $231.36 billion, a 7.2% increase from the previous year, India’s focus on targeted areas like border infrastructure and modernization suggests its intent to maximize the impact of its comparatively smaller Budget.
