The Defence Ministry has allocated ₹1.72 lakh crore for capital acquisition to buy new weapon systems. This allocation is part of the total budget of ₹6.22 lakh crore set aside for the ministry. The major procurement includes fighter aircraft, submarines, drones, and vehicles. The focus is on modernization and border infrastructure development.
Arms Procurements
A significant portion of this allocation will go to pensions and salaries.
The ministry will spend the capital acquisition outlay on acquiring new weapon systems for the armed forces, including fighter aircraft, ships, submarines, drones and specialist vehicles.
The planned modernisation of Su-30MKI fighter fleet along with additional procurement of aircraft, acquisition of engines for the existing MiG-29 fleet and purchase of transport aircraft C-295 and LCA Mk1A fighter will be funded out of the budget.
Major deals expected to be signed this year include a contract to acquire three additional submarines from Mazagaon Dockyards Ltd, purchase of 26 Rafale Marines from France and long-range drones from the US.
“This will have a multiplier effect on GDP, employment generation and capital formation, thus providing a stimulus to the economy,” one of the officials said.
Allocations for flagship schemes have also been hiked significantly. For the Agnipath scheme, the allocation has been hiked to ₹5,979 crore from the budgeted estimate of ₹4,266 crore in the last financial year.
The government has also made an additional allocation of ₹400 crore for innovation in defence through the Acing Development of Innovative Technologies with iDEX (ADITI) scheme.
Under this scheme, the ministry grants up to 50% of the product development budget with a limit of ₹25 crore per applicant for specific projects.
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A special focus has been put on border infrastructure development, with Border Roads Organisation (BRO) getting a 30% boost in its budgetary allocation. Projects such as development of Nyoma airfield in Ladakh, Shinku La tunnel in Himachal Pradesh and Nechiphu tunnel in Arunachal Pradesh will be funded out of this allocation.
The Defence Ministry has recently approved several arms procurement proposals. These include the purchase of assault rifles, anti-airfield weapons, transceiver sets, and other military equipment. The ministry has cleared the purchase of 72,400 Sig Sauer assault rifles from the US, with deliveries already completed for a previous order of 72,400 rifles. The Indian Army is also planning to buy an additional 72,000 Sig Sauer assault rifles from the US. Additionally, the ministry has approved the procurement of static HF transceiver sets and smart anti-airfield weapons. These acquisitions are aimed at enhancing the firepower and combat capabilities of the armed forces.
Defence Budget and Exports
India is one of the world’s biggest defence spenders, with a total defence budget of ₹6.21 lakh crore for the financial year 2024-25. The country has been increasing its defence exports, supplying arms to over 85 countries. In recent years, India’s defence shipments have seen a significant rise, reaching ₹21,083 crore in 2023-24. The government aims to further boost defence exports, with a target of reaching ₹50,000 crore by the 2028-2029 financial year.
(With Inputs From Agencies)
