Last Updated:
The support field was assigned Rs 6.22 lakh crore in FY 2024-25 which was 4.79% greater in contrast to in 2015
.
India was the globe’s fourth-largest defence-spending nation in 2024-25. (Courtesy: PTI)
Finance Minister Nirmala Sitharaman is readied to offer the Union Budget 2025 on February 1 and among one of the most important problems is what is inside the typical “bahi-khata” this time for the defence sector.
India’s defence industry is witnessing progress and the defence ministry is taking all necessary steps to establish an armed force which can address the modern-day challenges. This development is also upscaling the defence expenditure.
In fiscal year 2024-25, India was the world’s fourth-largest defence spending country.
How Much Did The Defence Sector Grow In Last Year?
In FY 2023-24, there was an increase of Rs 1.27 lakh crore in the defence production which is 16.7% high in comparison to the last year.
Meanwhile, the government had allocated 75 per cent of the 1.4 lakh crore capital procurement budget for FY2024-25 to indigenous products which further decreased dependency on imports.
The defence exports also saw growth and reached Rs 21,083 crore in FY 2023-24 which was 31 times more than what was earned a decade ago.
The Pinaka rocket system and BrahMos missile were among the defence products which were well-received globally.
What To Expect In Defence Budget 2025?
In FY 2024-25, the government allocated Rs 6.22 lakh crore for the defence sector in the Union Budget which was 4.79% higher in comparison to the FY 2023-24 budget.
The budget included Rs 1.72 lakh crore for capital expenditure. However, experts argued that the defence budget was not adequate to meet the growing security challenges.
The experts suggested that the defence expenditure at 1.91% of GDP fell short of the 3% benchmark.
By 2025, India is targetting an earning of Rs 35,000 crore through defence exports.
As per analysts, the capital expenditure this year should increase to Rs 1.9 lakh crore and a large share is likely to be directed towards Navy infrastructure and mobility vehicles.
It is expected that the defence budget will see a moderate hike to meet its modernisation needs.
