Defense Funding Surges by 18.43% in 2024-25 Budget

New Delhi- The Ministry of Defense (MoD) is set to receive a significant boost in funding under the 2024-25 Budget to further drive modernization and domestic capacity building in the defense sector.

On the 25th Kargil Vijay Diwas, Minister of Information and Broadcasting Ashwini Vaishnav highlighted India's significant strides in defence manufacturing and infrastructure over the past decade.

According to a report by Vaishnav , the Union Budget for 2024-25 has allocated Rs. 6,21,940 crore to the MoD, which is 18.43% more than FY 2022-23. The allocation marks a 4.79% increase when compared to FY 2023-24.

The capital budget for the defense forces is Rs. 1.72 lakh crore, which is 20.33% higher than the previous budget. The funding will be utilized for acquiring technology, weapons, aircraft, ships, submarines, and other critical military equipment. This will pave the way for the modernization of the Indian defense forces and enhancing their readiness to respond to any transnational threats.

To strengthen domestic capacity building, 75% of the modernization budget has been earmarked for procurement through domestic industries, which is expected to stimulate economic growth, create jobs, and contribute to capital formation. The initiative also aligns with the government's goal of making India self-sufficient in defense manufacturing and infrastructure.

Border infrastructure and Coast Guard support will also receive significant attention under the budget. A total of Rs. 6,500 crore has been allocated for border roads, with an increase of 30% from FY 2023-24. The funding will be utilized for the improvement of strategic infrastructure and connectivity in border areas, which is of strategic importance for national security and economic prosperity.

The Indian Coast Guard (ICG) will also receive a 6.31% increase in the budget for 2024-25, with Rs. 3,500 crore designated for capital expenditure. This will enhance the ICG's capabilities in maritime security and humanitarian assistance. The allocation also includes Rs. 1,05,518 crore for modernization, which will help in strengthening the Indian defense industry and promoting economic growth.

The budget for the Ministry of Defense (MoD) is a significant step forward in the defense sector. The allocation marks a historic increase in funding, which will pave the way for the modernization of the Indian defense forces and enhancing their readiness to respond to any transnational threats. With a focus on domestic capacity building and strengthening border infrastructure, the budget is expected to contribute to the sustainable growth of the defense sector and strengthen the nation's security landscape.