The preceding budgets demonstrate a clear commitment to enhancing India's defence capabilities.
The Defense Budget emphasises the government's dedication to the nation’s security, war-readiness and veterans' welfare, crucial for maintaining morale and readiness within the armed forces.
The upcoming budget is crucial for addressing the need for modernisation and improved combat capabilities to effectively counter security threats.
India boasts one of the largest military forces globally, with over 14.4 lakh active personnel, and the world's largest volunteer military, totalling over 51 lakh personnel.
The defence industry in India is witnessing growth, with a strong emphasis on self-reliance and advanced capabilities.
The public sector plays a significant role in India's defence production, holding a share of nearly 80%, and the government has consistently increased capital spending over the past decade.
Notably, the defence manufacturing industry has set ambitious goals, reflected in a 13% jump in the budget allocation to ₹5.94 lakh crore in 2023-24.
Recap of Previous Defence Budgets:
In the Union Budget 2022-23, the defence budget increased from ₹4.71 lakh crore to ₹4.78 lakh crore. The total allocation, including pensions, reached ₹3.62 lakh crore, with ₹1.35 lakh crore planned for warships, aircraft, and new weapons.
Last year, the defence services received a significant budget increase, totalling approximately ₹5.94 lakh crore for the fiscal year 2023-24. The modernisation budget also rose to around ₹1.62 lakh crore for acquiring weapon systems and equipment from Indian firms.
Additionally, the pension budget for the forces increased to about ₹1.38 lakh crore, marking a 15.5% surge in the Defense Pension Budget, highlighting the government's commitment to veterans' welfare.
An extended allocation of ₹23,264 crore to the Defence Research and Development Organisation (DRDO) aimed at strengthening research and development efforts.
This demonstrated a focus on indigenous innovation through budgets for Innovation for Defence Excellence (iDEX) and Defence Testing Infrastructure Scheme (DTIS), marked by a 93% and 95% increase, respectively.
Modernisation and Combat Capabilities:
The defence sector faces the imperative need for modernisation and increased combat capabilities due to rising security threats. However, defence experts consider the allocated budget amounts insufficient to meet these demands.
The delay in modernisation is apparent as the armed forces still use outdated military equipment like AK-47s and Indian Small Arms System (INSAS) rifles, not meeting global standards.
The recently launched indigenously made UGRAM rifle is however another step in the positive direction for the armed forces.
Expectations for the Upcoming Budget:
The defence budget requires a significant increase in provisions to meet the demands of modernisation and combat readiness. Experts advocate for an increase to around 3% of GDP.
To address contractual obligations, resource allocation for modernisation, and strategic needs, a substantial budget hike is necessary.
Additionally, a significant increase in the defence budget is required to cover salary hikes, pension funds, and strategic needs.
There should be a key focus on boosting indigenous innovation initiatives like iDEX and DTIS, essential for reducing dependency on imports and advancing self-reliance in defence production.
The budget should also prioritise infrastructure development to address critical combat capability gaps. Finally, it must emphasise the balance between strategic partnerships, operational requirements, and Atma Nirbharta (self-reliance), aligning with global geopolitical dynamics.
The upcoming defence sector budget in India should concentrate on maintaining the momentum of modernisation and indigenisation.
Additionally, attention to research and development and strategic partnerships with domestic industries is crucial for contributing to the strengthening of India's defence infrastructure. The increased allocation to the pension fund will not only support the welfare and financial security of retired military personnel but also foster confidence and stability within the defence sector, ultimately reinforcing India's defence capabilities.
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