Budget 2024: Major Defence Acquisitions from Fighter Jets to Submarines

Budget 2024: Major Defence Acquisitions from Fighter Jets to Submarines: The Ministry of Defence (MoD) has been allocated approximately Rs 6.22 trillion (about $75 billion) in the Union Budget for the financial year 2024-25 (FY25), marking the highest allocation among all ministries. This substantial budget highlights the government's focus on filling "critical capability gaps" through significant acquisitions in both the current and subsequent financial years.

Although the FY25 defence allocation is 0.31% lower than the Revised Estimates for FY24, it represents a 4.79% increase over the FY24 Budget Estimates. The MoD's allocation constitutes 1.9% of the gross domestic product (GDP) and accounts for approximately 13% of the overall Budgetary Estimate.

Military Modernisation Gets a Boost in Budget 2024

The FY25 budgetary allocation for military modernisation under the capital head stands at Rs 1.72 trillion, a 20.33% increase over the actual expenditure of FY23 and a 9.40% rise compared to the Revised Allocation of FY24. However, only 27.66% of the FY25 defence allocation is designated for capital outlay, essential for military modernisation. This includes investments in advanced technology, lethal weapons, fighter aircraft, ships, submarines, unmanned aerial vehicles, and specialist vehicles. The MoD has committed to addressing critical capability gaps through these "big-ticket acquisitions," ensuring the armed forces are equipped with state-of-the-art technology. The focus on promoting 'Aatmanirbharta' (self-reliance) in defence technology and manufacturing is also a significant aspect of this budget.

Budget 2024: Strengthening Domestic Defence Capacity

A noteworthy 75% of the modernisation budget, amounting to Rs 1.05 trillion, is earmarked for procurement through domestic industries in FY25. This initiative is expected to have a multiplier effect on GDP, employment generation, and capital formation, thus providing a stimulus to the economy. The defence production sector witnessed a 17% growth in FY24, reaching a record high of Rs 1.27 trillion.

Budget 2024: Focus on Defence Start-ups, MSMEs, and Innovators

The government has allocated an additional Rs 400 crore for innovation in defence through the Acing Development of Innovative Technologies with iDEX (ADITI) scheme. This scheme aims to engage start-ups, innovators, and micro, small and medium enterprises (MSMEs) in developing indigenous defence-technology solutions. Under the scheme, a grant of up to 50% of the product development budget, with a maximum limit of Rs 25 crore per applicant, will be awarded according to existing iDEX guidelines. The overall allocation for innovation in defence through iDEX has increased from Rs 115 crore in FY24 to Rs 518 crore in FY25. This boost is expected to encourage start-ups, MSMEs, and innovators in developing defence-technology solutions and attracting young talent.

Budget 2024: Defence Self-Reliance Through Research & Innovation

The Defence Research and Development Organisation (DRDO) has received an increased allocation of Rs 23,855 crore in FY25, compared to Rs 23,263.89 crore in FY24. A significant portion, Rs 13,208 crore, is allocated for capital expenditure, aimed at financially strengthening the DRDO in developing new technology, with a special focus on fundamental research and supporting private parties through the development-cum-production partner model. An additional Rs 60 crore has been allocated to the Technology Development Fund (TDF) scheme, designed specifically for new start-ups, MSMEs, and academia. This scheme aims to attract young talent interested in innovation and developing niche technology in collaboration with the DRDO. Also Check, India and Korea Unite for Air Drills During Multinational Exercise in Australia

Budget 2024: Strategic Border Infrastructure

The budget allocation for the Border Roads Organisation (BRO) under the capital head for FY25 is Rs 6,500 crore, marking a 30% increase over the Budget Estimates for FY24 and a 160% increase compared to FY22. This allocation aims to bolster strategic infrastructure and socio-economic development in the country's border areas. Key projects funded under this allocation include the development of Nyoma Airfield in Ladakh, permanent bridge connectivity to the southernmost panchayat of India in the Andaman and Nicobar Islands, the 4.1-kilometre Shinku La tunnel in Himachal Pradesh, and the Nechiphu tunnel in Arunachal Pradesh. The BRO completed 125 infrastructure projects worth Rs 3,600 crore in FY24, including the Sela tunnel in Arunachal Pradesh. This focus on border infrastructure comes amid ongoing tensions with China along the Line of Actual Control (LAC). Reports indicate that China is enhancing its facilities along the LAC, including the construction of a bridge over Pangong Tso lake and underground bunkers for storing weapons and protecting armoured vehicles. These developments highlight the importance of India's continued investment in strategic border infrastructure. The Budget 2024 allocation for defence focuses on India's commitment to modernising its military capabilities and promoting self-reliance in defence technology and manufacturing. With significant investments in advanced technology, domestic defence capacity, and strategic border infrastructure, the government aims to address critical capability gaps and strengthen the country's defence preparedness in the face of evolving security challenges.

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