Defence Budget 2024: FM Nirmala Sitharaman Retains Budget Allocation at Rs 6.21 Lakh Crore

In a significant move to bolster its defense capabilities, the Indian government has allocated a substantial Rs 6,21,940 crore for the defence budget for the financial year 2024-25. This marks an increase from last year's allocation of Rs 5.94 lakh crore, reflecting the government's commitment to enhancing national security and self-reliance in defense production.

Defence Minister Rajnath Singh expressed his gratitude to Finance Minister Nirmala Sitharaman for this increased allocation, which constitutes 12.9% of the total government budget for 2024-25. The capital outlay for defense stands at Rs 1,72,000 crore, aimed at further strengthening the capabilities of the Armed Forces.

A notable highlight of this budget is the earmarking of Rs 1,05,518 crore for domestic capital procurement. This significant allocation is expected to provide a substantial boost to the Atmanirbhar Bharat (self-reliant India) initiative, encouraging the development and production of defense equipment within the country. Singh emphasized that this move would not only enhance the capabilities of the Armed Forces but also stimulate the domestic defense industry, creating jobs and fostering innovation.

In addition to the capital outlay, the government has increased the allocation for the Border Roads Organisation (BRO) by 30% over the last budget, bringing it to Rs 6,500 crore. This enhanced funding will accelerate the development of critical border infrastructure, ensuring better connectivity and logistical support in strategic areas.

The defense budget also includes a significant allocation for fostering innovation and supporting startups. The Innovations for Defence Excellence (iDEX) scheme, which funds technological solutions provided by startups, MSMEs, and innovators, has been allocated Rs 518 crore. This initiative is part of the broader strategy to integrate cutting-edge technologies into the defense sector, promoting a vibrant ecosystem of innovation and entrepreneurship.

The interim budget presented earlier this year had already set the stage for this substantial defense outlay, pegging it at Rs 6.21 lakh crore. The final allocation reaffirms the government's focus on defense modernization and self-reliance, addressing both immediate and long-term strategic needs.

In summary, India's defense budget for 2024-25 is a clear testament to the country's resolve to strengthen its defense infrastructure and capabilities. With significant investments in domestic procurement, border infrastructure, and technological innovation, the budget aims to ensure that India remains well-prepared to meet any challenges while fostering a robust and self-reliant defense industry.