India defence budget 2024: ₹6.21 lakh crore allocated, highest allocation ever
- In Reports
- 09:42 PM, Jul 23, 2024
- Myind Staff
India's Finance Minister Nirmala Sitharaman unveiled the Union Budget for the fiscal year 2024-25 on July 23rd, allocating INR 6,21,940 crore ($74.29 billion) to the defence sector. This marks an increase of INR 500 crore ($60 million) compared to the amount announced in the interim budget presented in February.
Defence Minister Rajnath Singh praised the recent budget allocation, describing it as the highest ever for the defence sector. He noted that the allocation of Rs 6,21,940.85 crore constitutes approximately 12.9% of the total Union Budget for the fiscal year 2024-25. Singh expressed gratitude to Finance Minister Nirmala Sitharaman for this significant increase in funding, highlighting its importance for enhancing India's defence capabilities.
"Allocating Rs 1,05,518.43 crore ($12.5 billion) for domestic capital procurement will further boost self-reliance," Singh stated in a post on X (formerly Twitter).
Defence Minister Rajnath Singh announced a notable increase in the allocation for the Border Roads Organisation (BRO) under the capital head, marking a 30% boost compared to the previous budget. This enhancement, amounting to Rs 6,500 crore, underscores the government's commitment to advancing infrastructure development along border areas and sensitive regions. Singh emphasised that this increased funding will enable the BRO to utilize the latest machinery and technology, further accelerating the enhancement of India's border infrastructure.
A sum of INR 518 crore ($62 million) has been allocated to the iDEX (Innovations for Defence Excellence) scheme, aimed at supporting and promoting technological solutions from startups, MSMEs (Micro, Small, and Medium Enterprises), and innovators in the defence sector. Defence Minister Rajnath Singh highlighted this allocation as a move to bolster the startup ecosystem within the defence industries, emphasising the importance of fostering innovation and technological advancement in this critical sector.
Despite the substantial increase, India's defence budget remains below 2% of the country's GDP.
In addition to the allocations mentioned earlier, $913 million has been earmarked for the Indian Coast Guard and $2.85 billion for the Defence Research and Development Organisation (DRDO). These allocations are part of the broader effort to enhance capabilities in coastal security and advance indigenous research and development in defence technologies.
Image source: Hindustan Times
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