India Increases Defence Budget Amid Tensions with China

India allocated Rs 6.22 lakh crore for defence in the 2024-25 fiscal year, a 4.79% increase from the previous year, amid ongoing border disputes with China. Defence Minister Rajnath Singh emphasized the importance of domestic capital procurement to enhance self-reliance. The budget includes significant funds for new weapons, operational readiness, and R&D.

India has announced a defence budget of Rs 6.22 lakh crore for 2024-25, marking a modest 4.79% increase from the previous fiscal year. This comes in light of prolonged border tensions with China and frequent Chinese incursions into the Indian Ocean Region.

The budget includes Rs 1.72 lakh crore for capital expenditures, focusing on acquiring new weapons, aircraft, and other military hardware. Defence Minister Rajnath Singh highlighted the Rs 1.05 lakh crore allocation for domestic capital procurement, aimed at boosting self-reliance in defence production.

The Ministry of Defence also earmarked Rs 92,088 crore for operational readiness, ensuring that the armed forces remain battle-ready. Additionally, the budget for Defence Research and Development Organisation (DRDO) was increased to Rs 23,855 crore. These measures are expected to support India's goal of becoming a USD five trillion economy by 2027.

(With inputs from agencies.)